Our ancestors did their transactions thorough what was known as trade by barter. Later cowries were used as a means of exchange. When this became impractical they used silver and gold as a means of transactions. However these were not portable. It was not easy to move them from one place to another hence another method was devised.
What method? People deposit their gold with a goldsmith who are trusted and respectable member of the society back then. Depositors were issued receipts by the goldsmith which they take from one place to another for transactions. Those receipts became legal tender. From the goldsmith receipt came the paper currency as they are known today. However, before the Second World War all paper currencies were backed by gold. It was after this war that United States of America began to print more paper money than gold they had in reserve. And the rest of the world was lured into accepting this without asking for the gold backup. Hence, these currencies are now ordinary paper not back up with anything but were merely accepted as a means of exchange. The resultant effect was that the more money printed, the more value is lost.
In the western world they have moved further. The industrialized world preferred using debit, credit, mobile and internet to transfer money for decades now. An idea just embraced few years ago by the Central Bank of Nigeria through what they called “Cashless Policy.”
However, the world is no longer talking about cashless but digital money. Digital money? Yes! Most of our transactions today take place on the internet. Why do we still need the physical cash for transactions? More than that, the world need a better currency that is global and without political affiliation. Where can we find such currency? Blockchain technology came to the rescue!
In 2009 the first cryptocurrency was created by an anonymous person called Satochi Nakamoto and it was named bitcoin. Back then in 2009 the value of bitcoin was a mere 10cents. But alas! Bitcoin was exchanged for over $1,000 in 2013. Since then the whole world has embraced digital currency. As a matter of fact, we have over 1,500 different crypto currencies in the world today, among them is Onecoin which has been adjudged to be the best among its pals for various reasons.
Will the world and especially African countries ever accept this revolution of cryptocurrencies? It is not a matter of if but when! In the early years of the internet so many banks in Africa rejected the idea of putting the platform online. They claimed it is not safe. What about today? I don’t know of any bank currently not on the internet. This evolution of money is a revolution. It is either you embrace it or be left behind in the schemes of things.
In few years to come fiat money as we know it today will become a thing of the past. Don’t say it is impossible. Where is the NITEL of yesteryears or the post office that was booming years ago? Cryptocurrency also known as digital currency has come to stay.