Issue essay - Monetary system, please rate

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Issue essay - Monetary system, please rate

by antest07 » Sat May 16, 2009 7:17 am
“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.”


The author of the topic states that electronic credits and debits should be used and metal coins and printed pieces of paper should be totally abandoned. It seems that this is a brilliant idea at the first glance as it favors environmental protection. But such idea oversees the other impacts of not using the traditional payment methods.

Firstly, metal coins and printed pieces of paper have high historical and artistic values. They portray the social culture and image of our time. Metal coins and printed notes are often the first topic for historical to research on. Most countries emphasis on the design of coins and notes, as coins and notes are the most important way to show national pride. For instance, famous the image of Chinese leader Mao is shown in every Chinese coins and notes. Many collectors collect special editions of notes and refuse to sell them to anyone.

Secondly, it is not wise to totally rely on electronics. When failures occur in payment devices or systems, coins and notes are the best alternatives to electronic transactions. For instance, the Millennium bug occurred has caused billions of loss due to system failures. In traditional grocery stores where owners are elderly, the learning of operating electronic devices is not possible to them. Since many people accustomed to use paper money, eliminating paper money will make a hard time on them.

Last but not least, notes and coins are freely convertible to gold, a tangible asset. The government bears the responsibility to ensure that all coins and notes are valuable. This concept gives confidence to the money holder which ensures social stability.

In summary, coins and notes have their importance over electronic money. Although electronic payment gives us convenience, it is not justifiable to replace coins and notes with electronic debits and credits.
Source: — GMAT Essays (AWA) |

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