THE EVOLUTION OF THE PAYMENT SYSTEMS (ROOM 1)

Question 1

Do you remember how many various payment systems were presented in this room?

Answer 1

There are four payment methods!

• Contactless Payment System
• Barter
• Commodity Money
• Flat Money

Question 2

What is the issue with the barter system?

Answer 2

Issue 1: Requiring the parties involved to have the double coincidence of wants

Issue 2: Lack of a clear measure of worth

Question 3

Is iron considered commodity money?

Answer 3

Yes! Iron is a type of commodities money!

Question 4

What is the difference between fiat and commodity money?

Answer 4

The difference between fiat money and commodity money is their intrinsic worth.

Commodity money, such as gold and silver coins, has historically had intrinsic value derived from the resources from which it was manufactured.

Fiat money, on the other hand, has no intrinsic value; it is only the promise of a government or central bank that it has value and may be traded for goods and services. The value of fiat money is influenced by a country’s economy, government, and the impact of these variables on interest rates.

Question 5

What technology is used to create a contactless payment system?

Answer 5

Contactless payment is made possible using radio frequency identification (RFID) or near-field communication (NFC) technology, which is used in Apple Pay, Google Pay, Visa Pay Wave, and any mobile application that supports this payment system.