FUTURE OF M O N E Y

INDEX
History of
money Early
challenges
Digital currency
Drawbacks
Blockchain
Regulations
Future form of
money
 HISTORY OF M O N E Y
An ancient method of currency involved the
utilization of commodities like shells, beads, or
livestock as a means of trade. These items
possessed no inherent value and were
commonly accepted in commercial
transactions. These commodities played a
fundamental role in simplifying trade by
providing a common medium of exchange. it
allowed people to engage in commerce
without the need for a direct double
coincidence of wants
 EARLY CHALLENGES
As these items had inherent value but were
not always practical or universally accepted.
As societies continued to evolve and engage
in more complex trade, there was a need for
a more standardized and convenient medium
of exchange. This need eventually led to
the emergence of minted coins, where
precious metals like gold and silver were used
to create standardized units of currency
EVOLVING F O R M OF M O N E Y

Early societies used sea shells and commodities for

their intrinsic value and acceptance, but with the
growth of trade, standardized metal coins emerged,
offering durability and universal recognition. Paper
currency, first introduced in ancient China, transitioned
from representing commodities to fiat currency, gaining
portability and ease of use, ultimately revolutionizing
the way societies conducted financial transactions.
 BANKING

Traditional banking systems have

limitations such as centralization, slow
transaction speeds, and high costs.
Blockchain technology offers solutions to
these challenges by enabling
instantaneous transactions, reduced fees,
and enhanced security. As a result, banks
can leverage blockchain to improve their
services and stay competitive.
 CROSS-BORDER TRANSACTION
Cross-border transactions are essential
for global economic growth and trade.
They allow businesses to access new
markets, foster innovation, and promote
diversification. These transactions,
however, come with challenges like
currency exchange rates and regulatory
compliance. Effective infrastructure and
technology management are crucial to
their success. Cross-border transactions
are the lifeblood of international
commerce, powering economic
development on a global scale.
THE RISE OF CRYPTOCURRENCIES
The rise of cryptocurrencies and blockchain
technology has revolutionized the financial
landscape. Cryptocurrencies like Bitcoin have
gained immense popularity as decentralized,
secure digital assets, while blockchain, the
underlying technology, has found applications
beyond finance, including supply chain
management and healthcare. These innovations
offer the potential for borderless, efficient
transactions, increased transparency, and reduced
fraud. As the crypto market continues to expand, it
challenges traditional financial systems.
 BLOCKCHAIN
Blockchain technology has revolutionized the way
agreements are made with the introduction of
smart contracts. These self-executing contracts are
written directly on the blockchain, eliminating the
need for intermediaries and enabling automated
and trustless transactions. The applications of
smart contracts are vast and diverse, ranging
from supply chain management to insurance
and financial derivatives. Banks, in particular,
can benefit greatly from leveraging smart
contracts as they can streamline processes and
significantly reduce costs.
 ADVANTAGES
Blockchain operates on a decentralized
network
Data on the blockchain is secured
Transactions are recorded on a public
ledger
Once data is added to the
blockchain, it
cannot be altered or deleted
Eliminating intermediaries and
automating can result in cost
savings Blockchain can significantly
reduce transaction times
The transparent and secure nature
of blockchain reduces the risk of
fraud
 BLOCKCHAIN I N BANKING
Blockchain technology can transform banking operations
by enabling, faster and more secure transactions,
streamlined identity verification and smart contract
automation. Banks can leverage blockchain to enhance
cross-border payments, remittances, and trade finance.
Embracing blockchain can lead to increased efficiency
and improved customer experience.
Regulators worldwide are increasingly acknowledging the
potential of blockchain technology and alternative
cryptocurrencies (altcoins) in transforming traditional
financial systems. While Bitcoin remains the most
recognized cryptocurrency, various altcoins offer unique
features and applications. Regulators are realizing that
harnessing the technology underlying these digital assets
can enhance transparency, reduce fraud, and streamline
financial processes. By embracing blockchain and altcoins,
regulators aim to strike a balance between innovation and
compliance, ensuring the benefits of this transformative
technology can be realized within a regulated and secure
framework.
 CENTRAL BANK DIGITAL CURRENCIES
(CBDCS)

Central Bank Digital Currencies (CBDCs) represent a pivotal intersection of

traditional monetary systems and blockchain technology. These digital currencies,
issued and regulated by central banks, leverage blockchain's secure and
transparent ledger to offer a more efficient and cost-effective medium of
exchange. Blockchain ensures tamper-proof transaction records, enhances
security, and streamlines the issuance and management of CBDCs, with a
particular emphasis on cross-border payments. This innovation holds the
potential to significantly reduce cross-border transaction times, costs, and
enhance financial inclusion, all while raising regulatory and privacy
considerations.
COUNTRIES A N D THEIR TOKENS

Bahamas: "Sand dollar"

Brazil: "Drex"
China: "Digital Yuan"
Eastern Caribbean: "DCash"
India: "Digital Rupee"
Russia: "Digital Ruble"
Sweden: "e-Krona"
Turkey: "Digital lira"
UK: "Digital Pound"
CBDC VS CRYPTOCURRENCY
INDIAS STACK FOR DIGITAL CURRENCY

The RBI had launched the pilot for the

wholesale CBDC in November 2022 aimed
at settlement of secondary market
transactions in government securities. It
had then allowed the use of wholesale
CBDC for settlement of government bond
transactions in 4 cities and 8 banks and
has over 1 million wallets, users can do
P2P and P2M transaction.
CHALLENGES OF CBDCs
CBDCs can raise concerns about user privacy
and surveillance.
CBDCs can be vulnerable to cyberattacks
The successful adoption of CBDCs depends on
Adoption and User Education
CBDCs may exacerbate the digital divide if
access to technology and the internet is unequal
Cross-Border Challenges like Interoperability
and regulatory issues may arise
Cost and Infrastructure in Developing and
maintaining a CBDC infrastructure
 THE FUTURE OF
MONEY

Blockchain technology is reshaping the future

of money. As we move towards a more digital
economy, the integration of blockchain and
cryptocurrencies will continue to accelerate.
This shift will lead to greater financial
inclusion, improved security, and enhanced
efficiency in financial transactions.
Embracing this transformation is key to
staying ahead in the crypto era.
 CON CL U SI ON
In summary, the history of money has evolved from barter systems
to digital currencies. Blockchain technology, with its transparency
and security, has revolutionized financial systems. Central Bank
Digital Currencies (CBDCs) represent the next frontier in monetary
evolution, combining the stability of fiat currencies with digital
efficiency. As we move forward, striking a balance between
innovation, privacy, and regulation is essential. The future of
money, shaped by blockchain and CBDCs, promises faster, more
secure, and inclusive financial transactions, provided we navigate
this transformation responsibly and inclusively.
Thank
you!