Electronic Money
Electronic Money: Trends in Future Spending
Throughout the years, forms of payment and money have evolved drastically. From Native Americans using wampum to the invention of PayPal and other computerized payment methods, the way we spend money has become more adaptive to our lifestyles with convenience and ease of use. As electronic commerce is advancing and more people are embracing and accepting the use of computers and electronic forms of payment. Credit cards and checking accounts were the start of the revolution of the financial world. PayPal has become a form of electronic money used to complete secure online purchases. Other advancements such as electronic purses have given us a glimpse of what may be to come.
In order to understand the evolution of money and the ways in which electronic commerce has advanced, a brief history of money must first be assessed. An early form of a monetary system in America was the exchange of wampum, which was used in some Native American cultures. Merchants and traders adopted the wampum as a form of payment because of its ease of use and portability (“The future of,” 2001). However, this system was replaced by the gold standard.
In the United States, the Gold Standard Act was officialy enacted in 1900, which helped lead to the establishment of a central bank. At this time, guidelines were made to allow for a non-inflationary production of standard banknotes which represented a certain amount of gold. Banknotes had been used in England and Europe for several hundred years before this time, but their worth had never been tied directly to gold. The massive Depression of the 1930s, felt worldwide, marked the beginning of the end of the gold standard. In the United States, the gold standard was revised and the price of gold was devalued (“The history of,” 1996). Currently, currency in the form of paper money and metal coins is widely used and accepted. Consumers use currency because it is a trusted form of
Throughout the years, forms of payment and money have evolved drastically. From Native Americans using wampum to the invention of PayPal and other computerized payment methods, the way we spend money has become more adaptive to our lifestyles with convenience and ease of use. As electronic commerce is advancing and more people are embracing and accepting the use of computers and electronic forms of payment. Credit cards and checking accounts were the start of the revolution of the financial world. PayPal has become a form of electronic money used to complete secure online purchases. Other advancements such as electronic purses have given us a glimpse of what may be to come.
In order to understand the evolution of money and the ways in which electronic commerce has advanced, a brief history of money must first be assessed. An early form of a monetary system in America was the exchange of wampum, which was used in some Native American cultures. Merchants and traders adopted the wampum as a form of payment because of its ease of use and portability (“The future of,” 2001). However, this system was replaced by the gold standard.
In the United States, the Gold Standard Act was officialy enacted in 1900, which helped lead to the establishment of a central bank. At this time, guidelines were made to allow for a non-inflationary production of standard banknotes which represented a certain amount of gold. Banknotes had been used in England and Europe for several hundred years before this time, but their worth had never been tied directly to gold. The massive Depression of the 1930s, felt worldwide, marked the beginning of the end of the gold standard. In the United States, the gold standard was revised and the price of gold was devalued (“The history of,” 1996). Currently, currency in the form of paper money and metal coins is widely used and accepted. Consumers use currency because it is a trusted form of
References: Baddeley, M. (n.d.). Using e-cash in the new economy: an economic analysis of micropayment systems. Retrieved from http://www.econ.cam.ac.uk/faculty/baddeley/ecash04.pdf Glossary of statistical terms. (2003, March 04). Retrieved from http://stats.oecd.org/glossary/detail.asp?ID=3050 “money.” Merriam-Webster.com. Merriam-Webster, 2011. Web. June 28 2011. Paypal inc. (2004). Retrieved from http://www.fundinguniverse.com/company-histories/PayPal-Inc-Company-History.html Simon, J. (2006, June 22). Prepaid debit cards. Retrieved from http://www.creditcards.com/credit-card-news/prepaid-debit-cards-1271.php The future of payments. (2001). Retrieved from http://www.pbs.org/opb/electricmoney/before_computers/what/page1 .htm The history of money. (1996, October 26). Retrieved from http://www.pbs.org/wgbh/nova/ancient/history-money.html What are credit cards?. (2001). Retrieved from http://www.pbs.org/opb/electricmoney/before_computers/what/page 1.htm