The Economic Problem: From Barter to Commodity Money to Electronic Money

The success of alternative payment systems has led to discussion various proposals replace money with a new technology-based system, though many lack clear idea what exactly is the “money” they seek replace. We begin by presenting explanation money’s role in economy embraced most mainstream economists and policy analysts, based on that evolved out process market exchange. An looks as part organization production distribution network clearing across balance sheets expressed common unit account then presented, distinguishing between purely notional means settlement or discharge debt. final section addresses possibility fundamentally different modern extension this approach not inspired digital technology, distributed ledger accounting, application operating mobile/cell phone but rather actually existing system available from an internet telephone service provider currently offers subsidiary domestic international services whose procedures come close replicating mentioned above, potential provide all payments at lower costs greater stability.