The timeline from primitive to modern societies.

The birth and timeline of money and
financial services 

understand the future of cash payments and transactions, we need to understand
the importance and prominence of cash throughout history. Understanding its
role and timeline from primitive to modern societies. At the beginning of humankind
before coinage, bartering was used in lieu of money to purchase goods as people
traded with who they trusted, the first record of bartering was in Egypt. One
of the primary forms of bartering included sheep, vegetables and cattle as man
tended to his livestock, to barter with what they had in surplus for what they
were scarce. Barter limits the developments between trading partners as product
values were unequal and the product being offered was not always desired. Some
primitive regions still use this kind of prehistoric currency to trade. After a
while comprehensive financial systems were set up in ancient civilization that
allowed the use of both barter and money for goods.  In 600BC, the first known official currency
was created by King Alyattes, with a roaring lion appearing on the coin face.
Metals were straightforward to divide, store and carry but were scarce which
made them valuable. Precious metals were recorded alongside other commodities,
with their weightings conveying a variety of objects can be used for
transactions. The standardised coinage resulted in greater transparency,
economic prosperity and trade growth across the Mediterranean world. The first
paper money was invented by Chinese merchants in 1290 and was introduced to mainland
Europe by Marco Polo which followed his voyage to China. However, initially
paper money didn’t take off and eventually coins progressed into bank notes
around 1661 because their value quickly depreciated and resulted in inflation
skyrocketing (Burn-Callander 2014). Paper money disappeared in China for
centuries then reappeared in Europe where it became common. This implementation
was pivotal for businesses as banks notes were mass supplied shifting from the
heavy reliance on commodities such as gold and silver. Banks and countries
started buying each other’s currencies creating the first currency market and
government or monarch solidarity affected the valuation of their currency and
their power when trading in the expanding international markets. The strong
competition resulted in currency wars as rival countries would purposely drive
down currencies to increase the prices of their enemy’s goods making them too
expensive, reducing their enemy’s purchasing power or by destroying the
currency entirely. To the 19th Century where paper money has become common in
European Countries, with the first credit being issued in 1946 invented by John
Biggins. (Burn-Callander, 2014).

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In recent
decades there was chip and pin, then contactless, and now smartphone payments:
with these remarkable innovations in Fintech for payments technology, it is
difficult not to picture a cashless society where cards, smartphones and other
cash alternatives will be used to pay for daily expenses. Over twenty years ago
there was no such thing as internet banking, chip cards or pay wave. Even
something we deem to be simple such as transferring or withdrawing funds
required a physical trip to an ATM or bank branch but now consumers hold
everything in the palms of our hands and it’s all in one place, with the
plethora of new technologies becoming integral to daily life we have the
freedom to pay for goods anywhere. 


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