Lit review

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THEORETICAL FRAMEWORKSCashless economy: a brief overviewMoney revisited: The core functions of money and evolution of money Before taking a closer look at the cashless economy, the study would return to the basics with a quick revisit at fucntions of money and the evolution of money as we know it today. Orginally, according to William Stanley Jevons (1875), the fundamental function of money include: Medium of exchange, common measure of value for goods, store of value over time and standard of value. In later studies, only three former functions remained to be considered as primary functions of money. The existence of money has improve the challenges in the barter economy. As medium of exchange, money is used to pay for goods and services, which promotes economic efficiency by mitigating the time spent on exchanging goods and services. As standard of value, money reduces transation cost by reducing the number of prices that need to be considered, which is extremely helpful as the economy becomes more complex. As a store of value, one advantage of money over other assests such as stocks, bonds or real estate property is its high liquidity. The evolution of money dated back from time immemorial, when people bartered goods or commodity money. The first official currency using coinage made of gold and silver is believed to have been minted around 600BC. It was not until around 800-900 that first fiat money system appeared in China. Later, banknotes and checks became popular in the West due to convenience, nonetheless, excessive papers was costly in terms of processing time and printing expense. Electronic payment and e-money are the most recently development of money. Their first forms were debit cards and credit cards. In recent years, s


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