History of money in practice the history of currency transfer. Since humanity has limited the payment phase in the form of goods by creating currencies, having money transfers from all types developed. A large amount of money rarely moves physically between countries in the world today for currency transfer now a routine and electronic transaction takes a few seconds to be executed.
The first coin-based currency emerged around 2000 BC but metal-based currencies did not become widespread before the seventh century BC. China introduced a paper currency around 806 m and it was a kind of revolution in the financial world at that time; But centuries must pass before the paper currency obtained the current status of the exchange general media. Before paper money appeared, someone had to carry a bag full of gold or other metals to exchange in any form but then on the government began to print banknotes and bind it to the previously saved precious metal. In fact, this development gives birth to modern foreign currency exchanges and transfers.
On the other hand, during the Medieval Crusade, when Europe was unfamiliar with banknotes, then bankers provide crusaders and pilgrims with handwriting paper in exchange for gold or other coin currencies deposited to them. Arriving at the Holy Land, a stranger knocked on the door of a local banker and in exchange for the letters could receive the same amount in the local currency. Genoa and Venetia, and then Knight Templars are major medieval European bankers and provide safe and reliable currency transfer services.
The transfer mechanism of gold-supported currency has not changed significantly for centuries to come to the “gold standard” (where every banknote in the circulation was supported by the same amount of gold) was abolished in 1944 and the introduction of telegrafi transferring money a few decades before.
The latest technological developments force major changes in the forex market and how to transfer currency. Telegram, telephone calls, and telexts are replaced by foreign currency exchange platforms in real time based on computer technology and high-speed digital data transfer lines. In fact, current currency transfers almost never involve the exchange of paper money; Banks and non-banking institutions exchange data about money, but not the money itself.
We all know that money is just a note about someone’s personal wealth; Therefore, other bankers and financiers do not need to physically have your money but to keep your accurate wealth records to be able to exchange this note with other investors. Modern currency transfers work this way and no one exchanged gold bags or sent money physically. Briefly, around 90 percent of modern world wealth is only present in bank computer files; While only 10 percent is in the form of actual money. Foreign currency exchange markets and currency transfers have jumped forward very in a few decades.