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What is the history of Currency

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What is the history of Currency

The history of currency is in practice the history of currency transfers. Ever since humankind has curbed the stage of paying in the class by inventing the currency, have money transfers of all kinds developed. Large sums of money are moving physically between countries in nowadays for currency transfers are currently a routine and electronic transactions take seconds to be executed.

When was the first coin-based currencies

The first coin-based currencies appeared in around 2000 BC, although the metal-based currencies did not become widespread before the seventh century BC. China introduced the paper currency around 806 AD and also it was a kind of a revolution in the then-financial in the world, yet many centuries had to pass before the paper currency obtained its present status of a general medium of the exchange. Before paper money came into being, one would have to carry bags full of gold or other metal to conduct an exchange of any class but later on, governments started printing paper money and tie them to pre-stored precious metals. Actually, this development gave birth to the modern day foreign currency exchange and transfers.

Alternatively, during the medieval Crusades, when Europe was not familiar with the paper money, the then bankers offered crusaders and pilgrims with handwritten papers in exchange for gold or other coin currency deposited with them. Arriving in the Holy Land, a stranger knocked on the door of a local banker and in exchange for the papers was able to receive an equal sum in the local currency. Genoa and Venetia, and later the Knight Templar were the main bankers of medieval Europe and provided safe and reliable currency transfer services.

Mechanisms of the gold backed currency transfers did not change significantly during the centuries to come the gold standard (in which every banknote in circulation is backed by the same amount of gold) was abolished in 1944 as well as the introduction of the telegraphic money transfers some decades earlier.

Modern technology developments forced major changes in the Forex market and the systems of conducting currency transfers. Telephone calls, Telegrams, and Telexes are replaced by actual time foreign currency exchange platforms based on computer technologies and high-speed digital data transfer lines. Actually, today's currency transfers only just ever involve an exchange of paper money; banks and non-banking institutions exchange data about the money, but not the money itself.

We know that money is just a record of one's personal wealth, bankers, hence, and other financiers need not to physically possess your money but to keep a correct record of your wealth to be able to exchange these records with other financiers. Modern currency transfers work this system and no one is exchanging bags of gold or sending money physically. On the other hand, some 90 per cent of the modern world's wealth is present just in the computer files of banks; while a more 10 percent is in the form of real money. The foreign currency exchange market and the currency transfers have leaped forward tremendously in just some decades.

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