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.”
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations, or reading.
425
The above issue of replacing the entire system of coins and paper with a system of electronic accounts of credits and debits is a controversial one. On the one hand, the increasing use of credit and debit cards in today’s world is an indication that people prefer plastic currency over paper and coins. On the other hand, the rising number of problems associated with the use of credit cards, like people not paying back their dues on time or not at all and people spending more than their means are suggesting the reduction in the use of debit and credit cards.
In my opinion, people should be taught to balance between the use of metal or printed currency and plastic money. The new strategies that most of the credit counseling companies advocate include the more use of paper money. Because, in this way you know that exactly how much you are spending is how much is left. Moreover, if you don’t have money, it is an indication that to stop spending and start saving.
On the other hand, with the use of plastic money like credit cards people can spend money even if they don’t have any of it and they may pay later. And if, for some reason you are unable to pay later, the interest will be added to the original amount plus penalties and after some time if you won’t pay you are in debt. Therefore, the excessive use of credit and debit cards should be avoided and people should learn to live within their means.
On contrary to the above views, if you use electronic accounts wisely, the benefits are rewarding. For example, if you are a businessman and have business operations in more than one country, you can use electronic transfer to debit or credit money from account in one location to another without being physically present at the different locations. Moreover, there are countless benefits of smart use of plastic money. But, for those who don’t know how to use it wisely and smartly it is a curse because they misuse credit money at the end do not pay and file for bankruptcy and then the financial institutes have to suffer the loses which in turn effect the whole economy. And it is apparent from the current economic crisis. Therefore, the existence of paper money is essential to regulate the inaccuracies.
In the end, I would like to conclude that the international community should consider finding a way to balance the use of both coins and paper and also of electronic accounts of credits and debits.
Discuss the extent to which you agree or disagree with the opinion stated above. Support your views with reasons and/or examples from your own experience, observations, or reading.
425
The above issue of replacing the entire system of coins and paper with a system of electronic accounts of credits and debits is a controversial one. On the one hand, the increasing use of credit and debit cards in today’s world is an indication that people prefer plastic currency over paper and coins. On the other hand, the rising number of problems associated with the use of credit cards, like people not paying back their dues on time or not at all and people spending more than their means are suggesting the reduction in the use of debit and credit cards.
In my opinion, people should be taught to balance between the use of metal or printed currency and plastic money. The new strategies that most of the credit counseling companies advocate include the more use of paper money. Because, in this way you know that exactly how much you are spending is how much is left. Moreover, if you don’t have money, it is an indication that to stop spending and start saving.
On the other hand, with the use of plastic money like credit cards people can spend money even if they don’t have any of it and they may pay later. And if, for some reason you are unable to pay later, the interest will be added to the original amount plus penalties and after some time if you won’t pay you are in debt. Therefore, the excessive use of credit and debit cards should be avoided and people should learn to live within their means.
On contrary to the above views, if you use electronic accounts wisely, the benefits are rewarding. For example, if you are a businessman and have business operations in more than one country, you can use electronic transfer to debit or credit money from account in one location to another without being physically present at the different locations. Moreover, there are countless benefits of smart use of plastic money. But, for those who don’t know how to use it wisely and smartly it is a curse because they misuse credit money at the end do not pay and file for bankruptcy and then the financial institutes have to suffer the loses which in turn effect the whole economy. And it is apparent from the current economic crisis. Therefore, the existence of paper money is essential to regulate the inaccuracies.
In the end, I would like to conclude that the international community should consider finding a way to balance the use of both coins and paper and also of electronic accounts of credits and debits.
