From barter to Bitcoin – currency is evolving

Cash in pockets. Credit on cards. Currency has evolved alongside humans, but we don’t often think about the why. In this digital era, is our antiquated financial system lean, clean or green enough to deliver the future? Zumo – Scotland’s digital wallet and payments platform – uses the latest crypto-secure technology and a decentralised infrastructure to provide you with complete ownership, access and control over your digital finances. The money experts at Zumo believe change is here. Charles Read, the company’s Head of Growth, explains more about the history of money and the evolution of Bitcoin.

The evolution of money

“First there was bartering – the exchange of goods – which was often bulky and impractical, and was largely replaced by various coinage during the latter half of the 9th century. Scotland wouldn’t have an official currency until King David I captured the English Mint and silver mines of Carlisle in 1136. Crafted in the same weight and purity as their English counterpart, these coins were interchangeable for centuries. Until 1356, when King David II devalued Scottish coins by mixing in cheaper metals, leading to a long period of financial decline. “In 1695 the Bank of Scotland was created by an Act of the Scottish Parliament, to reinforce the struggling economy. Banking became a regulated and respectable business, and promissory notes soon replaced piles of coins. “A little piece of paper with the value of gold; it was no surprise that forgers saw great potential. As technology advanced, new complex printing techniques were introduced, but this short-term solution has been repeated nearly every decade since, and forgers are one step behind. “Fake money was seen as an unavoidable aspect of our current financial system, but the banks were still seen as secure. But once banks discovered they could lend money they didn’t have, Fractional Reserve Banking was created, stimulating a golden age of commerce and debt, and leading to the financial crash of 2018. “Meanwhile, bank cards and online banking were introduced, dispelling the notion of physical monetary tokens and paving the way to a cashless economy. “Then somewhere in Japan, in 2008, Bitcoin – one of the first digital currencies – was created. It’s now considered ‘digital gold’. “It’s finite and scarce. You can’t forge it or print more of it, and that makes it inherently valuable. Its current market cap is over £130bn, and it’s performed well under the strain of Covid-19. Over 1.1m new digital wallets have been created in the UK this year alone, but many of these wallets suffer from major ownership, accessibility and safety issues.

Zumo’s purpose

“That’s where Zumo comes in – we make having smart money simple. Our world-class computer engineers handle all of the complicated tech, so your transactions, storage, and management can be simple. “Zumo’s a secure and cost-effective alternative to the vulnerable centralised exchanges, offering users not only full ownership of funds, but more functionality, lower fees and 24/7 access. “Our Convertible Debit Card (launching this autumn) lets you spend your Zumo funds just like a regular debit card, breaking down the barriers of modern finance and unlocking smart money for everyone.” To find out more, visit the website