View Notes - Money and Banking Introduction-Evolution of Money from ECON 160 at University of California, Los Angeles. The Chinese were the first to devise a system of paper money, in approximately 770 B.C. Bitcoin is a digital or virtual currency created in 2009 that uses peer-to-peer technology to facilitate instant payments. History of Money Money has been instrumental in how society and commerce have evolved over the centuries. However, there’s still a big problem in the Bitcoin world — scalability. The competition between countries often led to currency wars, where competing countries would try to change the value of the competitor's currency by driving it up and making the enemy's goods too expensive, by driving it down and reducing the enemy's buying power (and ability to pay for a war), or by eliminating the currency completely. Difficulties in storing values. A long time ago, gold served as the main form of money. Although China was the first country to use an object that modern people might recognize as coins, the first region of the world to use an industrial facility to manufacture coins that could be used as currency was in Europe, in the region called Lydia (now western Turkey). As is well known, the orthodox story of money’s origins and evolution begins with the creation of a medium of exchange to reduce the costs of barter. "Coinage In Western Continental Europe, Africa, And The Byzantine Empire." It shows how money facilitates transactions by comparing a money system to a barter system. Parts of Europe were still using metal coins as their sole form of currency all the way up to the 16th century. 2 billion people worldwide do not have a bank account or access to a financial institution via a mobile phone, or any other device according to the World Bank’s Global Financial Inclusion database. The first bank in Europe to issue printed money was Swedish Stockholm Bank in 1661. EVOLUTION OF MONEY The word “money” is derived from the Latin word “Monet” The origin of money is lost Hunting society, skin of wild animals were used as money Pastoral society used livestock Agriculture society used grain and foods The Roman used cattle and salt. "Chinese Coins: Money in History and Society," Page 3. Satoshi Nakamoto's Brilliant White Paper Turns 9-Years Old. (Today, when someone says, "as rich as Croesus", they are referring to the last Lydian king who minted the first gold coin.), Around 700 B.C., the Chinese moved from coins to paper money. INTRODUCTION. The History of Money can be assigned as an additional Think about any other asset on our planet, is their any equal asset for 7.5 billion people? This paper money could be used to buy goods and services. in Lydia (in Turkey), coins were made using a mixture of gold and silver. Britannica. Liuliang Yu and Hong Yu. Bitcoin. 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