In the past, people produced things only for their own sustenance, such as rice, beans and other commodities. When they produced certain products in excess, they decided to exchange the surplus among the community.
For example, I produced a lot of rice and you produced a lot of corn. In order not to lose this surplus production, we exchanged a little corn for a little rice. This form of exchange became known as barter. At that time there were no coins and paper money as we know it today.
Over time, certain goods, due to their importance to society, became more valued and thus became known as commodity coins. The main ones were cattle and salt (which served to preserve food). In fact, the term wage came out of it. In ancient Rome, the form of payment was made through salt.
However, over the years, this form of negotiation did not work, as there was no way to keep this “wealth”, since the food was perishable. The best way to manage to save and accumulate wealth was with the discovery of the metal, in the beginning with copper, gold, silver and bronze. After a while, there was a standardization in the shape and size of these metals.
ancient gold coin
Thus, its value was defined by the type of metal in the coin, for example, gold is worth more than silver, which is worth more than copper. As there were several attempts at fraud in relation to the authenticity of the metal, the real value of the coins was stamped on the face of the coins. Coins are now made of metal alloy and nickel.
The size and shape of paper money are different in every country in the world.
Later, with difficulty in storing and transporting coins, paper money was invented. The task of saving other people's money was for the banks. In return, the individual was given a receipt with the value of the amount saved.In the beginning of the 19th century, many countries began to issue banknotes that fixed the values of the notes, preventing possible forgery of receipts and losses to banks.
By Regis Rodrigues
Graduated in Geography
