Issue:
For hundreds of years, the monetary system of most countries has been based on the exchange of metal coins and printed pieces of paper. However, because of recent developments in technology, the international community should consider replacing the entire system of coins and paper with a system of electronic accounts of credits and debits
When discussing the issue of replacing the monetary system, various aspects need to be taken into consideration in order to form a coherent analysis. It is often said that countries should replace their monetary system to one which is completely electronic. Nevertheless, by doing that many problems may arise and threaten the world economics. By inspecting these and other important factors, I will present logical support to the view that the world is not yet ready for such a change.
To begin with, replacing the monetary system requires everyone to have a bank account. Banks take commissions on each and every procedure done by the account owner. The poor and the homeless, who live from what they can find, will practically not be able to survive such a change. Although advocates of the new monetary system suggest banks can exempt some people from commission, it is highly unlikely to think banks will supply services for free.
The advantages of electronic economy are varied. It will save us the extra effort to carry money, It prevents the extra cost of printing notes and manufacturing coins, stealth and forgery will become more difficult. However, before such a change can happen the computer technology has to be better suited. For example, better computer security has to be presented or otherwise money, which is prone for stealth and electronic forgery, will not be safe.
The world is already taking steps towards an electronic monetary system. Day by day internet companies such as PayPal are growing larger in customers and money transactions. That trend will eventually bring us to the point of switching our monetary system altogether, but rushing it can be a huge mistake. Even today, credit card numbers are being misused by computer hackers. Try to imagine the world economics totally dependent on a computer, what if it crashes? Present computers are not stable and secured enough to support the change. It could be said that the stock market is successfully based on electronic exchange for several years, yet just weeks ago the U.S market fell about 10% due to a computer mistake. Such mistake, if happened in a system that control the world's fortune will be un
The evidence presented above strongly supports the viewpoint that even though electronic monetary system has strong advantages and is surely the world's economic future, It will be unwise to force the change too early as the risks of doing so are too big at that point of time.
For hundreds of years, the monetary system of most countries has been based on the exchange of metal coins and printed pieces of paper. However, because of recent developments in technology, the international community should consider replacing the entire system of coins and paper with a system of electronic accounts of credits and debits
When discussing the issue of replacing the monetary system, various aspects need to be taken into consideration in order to form a coherent analysis. It is often said that countries should replace their monetary system to one which is completely electronic. Nevertheless, by doing that many problems may arise and threaten the world economics. By inspecting these and other important factors, I will present logical support to the view that the world is not yet ready for such a change.
To begin with, replacing the monetary system requires everyone to have a bank account. Banks take commissions on each and every procedure done by the account owner. The poor and the homeless, who live from what they can find, will practically not be able to survive such a change. Although advocates of the new monetary system suggest banks can exempt some people from commission, it is highly unlikely to think banks will supply services for free.
The advantages of electronic economy are varied. It will save us the extra effort to carry money, It prevents the extra cost of printing notes and manufacturing coins, stealth and forgery will become more difficult. However, before such a change can happen the computer technology has to be better suited. For example, better computer security has to be presented or otherwise money, which is prone for stealth and electronic forgery, will not be safe.
The world is already taking steps towards an electronic monetary system. Day by day internet companies such as PayPal are growing larger in customers and money transactions. That trend will eventually bring us to the point of switching our monetary system altogether, but rushing it can be a huge mistake. Even today, credit card numbers are being misused by computer hackers. Try to imagine the world economics totally dependent on a computer, what if it crashes? Present computers are not stable and secured enough to support the change. It could be said that the stock market is successfully based on electronic exchange for several years, yet just weeks ago the U.S market fell about 10% due to a computer mistake. Such mistake, if happened in a system that control the world's fortune will be un
The evidence presented above strongly supports the viewpoint that even though electronic monetary system has strong advantages and is surely the world's economic future, It will be unwise to force the change too early as the risks of doing so are too big at that point of time.
