Traditional vs. Modern Forms of Money Essay

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In recent decades, electronic alternatives have largely replaced traditional forms of money. If previously, the majority of transactions were conducted using cash, in the current age, more and more individuals throughout the world are using their electronic counterparts, such as digital money, credit cards, and electronic wallets (Nelms et al., 2018). However, even though it has been suggested that traditional forms of money are becoming obsolete, it is very unlikely that the traditional forms will indeed be replaced in the near future.

The most significant argument for the continuing existence of traditional forms of money is the impossibility of converting all financial resources into a digital form. Considering that even the most advanced banking systems cannot yet fully support such transactions, a tremendous amount of time will be needed to remove traditional forms of money from usage (Nelms et al., 2018). In addition, another issue is the dependence of underdeveloped and developing countries on traditional currencies (Nelms et al., 2018). As these nations do not have the technological capacity to endorse such transitions, traditional forms of money will be used for years to come.

Reference

Nelms, T. C., Maurer, B., Swartz, L., & Mainwaring, S. (2018). Social payments: Innovation, trust, bitcoin, and the sharing economy. Theory, Culture & Society, 35(3), 13–33. Web.

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