IT’S ANOTHER MEETING DAY HEADED BY
BROTHER INK ADETOYAN SHOLA
WELL KNOWN AS BIGSHOW
UNITED ARAB EMIRATES REPRESENTATIVE
TODAYS TOPIC SHALL BE : THE HISTORICAL EVOLUTION OF MONEY TILL DATE
WHAT IS MONEY
Money is any item or verifiable record that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular country or socio-economic context.
The main functions of money are distinguished as:
- a medium of exchange
- a unit of account,
- a store of value and sometimes,
- a standard of deferred payment.
therefore, any item or verifiable record that fulfils these functions can be considered as money.
IN the beginning , there was no money, but we trade and exchange goods among ourselves with the method known as TRADE BY BARTER. that is, you need rice and i want the garri you have, so u bring the garri to the market and exchange with some one who have the rice you are craving for.
After trade by barter we have COMMODITY MONEY i.e SILVER AND GOLD.
THEN WE MOVE TO FIAT CURRENCY OR PAPER MONEY. Today this fiat money doesnt have any intrinsic value e.g, NAIRA , DIRHAMS , DOLLARS, RIYAL ,PESO, RIAL, EUROS, POUNDS , CEDIS, CEFA, AND SO ON…..
These are mere paper with their value written boldly on them just like u have N1000, 10$ , ETC you can only use them as a means of exchange and paying for services but can never be sold just like the commodity money becos paper money dont have INTRINSIC VALUE.
The FIAT money was only given acceptance base on the full faith and credit of its issuing authority, nigeria issue naira not because they have anything to back it up as commomdity .
In 1970s of the last century , America decided that they are not abiding by the rules of backing fiat money with commodity again but will issue currency as far as the country wish and think they need to issue and that acutaully put an end to linking or backing fiat money with commodities like gold and silver.
Ever since then , we have been having the fiat currency ordinarily without been backed by any commodity whatsoever
Therefore, it gives room to any country to borrow for projects e.t.c.
About 13 years ago, another money evolved and its known as CRYPTOCURRENCY OTHERWISE KNOWN AS VIRTUAL CURRENCY
WHAT IS CRYPTO CURRENCY these digital or virtual currencies that are encrypted or secured using cryptography.
WHAT IS CRYPTO GRAPHY : is a technology which simply mean COMPUTERIZE, ENCODING AND DECODING OF INFORMATIONS these are all about codes and it can only be stored, created and traded electronically.
DEFINITION OF CRYPTO CURRENCY IN ECONOMICS ACTIVITIES
EUROPEAN BANKING AUTHORITY
cryptocurrencies as a digital representation of value that is neither issued by a central bank or a public authority and not necessarily attached to fiat currency but its accepted by a natural or legal persons as a means of payment which can be transferred , store or traded electronically.
But in 2016, another financial institution in fact a very strong one at that………..
THE EUROPEAN CENTRAL BANK added a slight different meaning to what the EUROPEAN BANKING AUTHORITY SEES AS THEIR OWN DEFINITION
THE EUROPEAN CENTRAL BANK said given that cryptocurrencies are virtual currencies and are not physical like the fiat money, then they can not be regarded as a means of payment but as a mean of exchange.
what ECB is saying has no practical economic implications on the economic and market scale because their statement is political and has a legal connotation because ECB said according to their perspectives of the European union , from the provision of the council regulations, EC no974/98, the euro is the single currency of the economic and monetary union.
According to the punch , Nigeria traded , transacted and exchanged crypto and was ranked third after USA and russia in 2020. This means that we are embracing the new technology which made investments, payments, and exchanges easy for us.
Recently , we heard about the USDCOIN been issued by the US government to reserved and to back the US dollar i.e to digitalized the USA currency ( Dollar)
Also according to the Arabnews online dailies The Saudi Arabian Monetary Authority (SAMA) has signed an agreement with blockchain-based company Ripple to help banks in the Kingdom improve their payments infrastructure.
According to a statement from Ripple, Saudi Arabian customers will experience “faster, cheaper and more transparent cross-border transactions.”
SAMA’s recent adoption of xCurrent, makes it the second central bank to use blockchain technology to revolutionize payments, following the Bank of England’s successful proof of concept with Ripple in 2017.
Central banks around the world are leaning into blockchain technology in recognition of how it can transform cross-border payments, resulting in lower barriers to trade and commerce for both corporates and consumers.
SAUDI ARABIA signed the agreement with RIPPLE blockchain to digitalize their central bank in order to have their riyal reserved.
Other known countries like UAE, Venezuela, India, are also in line with the blockchain technology to change their fortune and make payment, transactions and exchange easy for their citizens
What has PINKOIN got to offer Nigeria NAIRA if the govt come out openly to adopt and embrace PINKOIN blockchain technology?
The inksledger blockchain can serve and prevent a lot of abnormalities in Nigerians and Nigeria as a whole , but am going to narrow it to some points that are more concerned to our daily expectations which touches and really matters not only to Nigeria but to every other nations across the globe .
Reduce/eradicate poverty : with the way inksledger is built, no nation can remain poor or see their citizens live below 10$ per day. Becos it’s promises a significant amount every months which every single living nodes on the inksledger can live on and still keep for their next generations.
Also Owing to the fact that it’s a user base coin makes it more valuable Becos the more it’s accepted by every living nodes in the country and the world at large the more reserve we have which will also give value to human beings as we know that mortality rate will affect the inksledger reserve.
It will help facilitate the long awaiting cashless policy: since blockchain offers virtual money and all transactions are done virtually online, adopting PINKOIN as a reserve for NAIRA or any other currencies will make payment, transactions and exchanges go cashless without wasting much time.
Reduce corruption to the least: can serve a unique role in preventing government corruption. Its technology offers a singular combination of permanent and tamper-evident record keeping, real-time transaction, transparency and auditability, with automated smart contract functionality.
as a result of the real timing of all transactions on blockchain technology, accepting PINKOIN in our financial systems will drastically reduce the level of looting, embezzlement and other corrupt or illegal practices like robbery, prostitutions , frauds , kidnapping in the nation which without any doubt has reduced the nation to ground zero among her peers or counterparts.
Growing concern over election security, voter registration integrity, poll accessibility, and voter turnout should lead governments to consider blockchain-based voting platforms as a means to increase faith and participation in essential democratic processes.
Inksledger Blockchain is decentralized, transparent, immutable, with encrypted qualities could potentially help minimize election tampering and maximize poll accessibility.
It will reawake the financial state of the nation and bring back the glory days of Nigeria or of any nation
By digitalizing NAIRA with PINKOIN it will make the currency more valuable again and Nigeria can pay easily her debt and develop the country infrastructures becos there will be abundance as a results of over 200m citizens on the blockchain.
In summary, transactions, exchanges and trading started with TRADE BY BARTER, later moved to commodity money with INTRINSIC VALUE and then the FIAT CURRENCY we have in circulations today
All this changes or evolutions was not easy has it sounded but a struggle and with a lot of patient by those before us.