How is money generated?

Money is separated from commodities and fixed as commodities with universal equivalents. The essence of money is universal equivalent. In primitive society, people used barter. With the improvement of productivity and the increase of commodities, barter is no longer applicable, so money appears. Commodities are produced by exchange. The evolution of monetary form has experienced four main stages: physical currency, token, credit currency, electronic currency and digital currency.

1. Physical currency: The earliest currency was created by Sumerians, and wheat was used as the currency for commodity exchange.

2. The nature of currency: Take China as an example. From the Shang Dynasty to the Warring States Period, copper coins appeared in different forms, such as shovel coins of Zhao, knife coins of Qi and ant nose coins of Chu. After Qin unified the six countries, "Qin Banliang" was issued as a round square hole money. The phenomenon of local tyrants is famous. In order to resist this phenomenon, the central government began to cast Bao Tong and ingots, and calibrated their weights.

3. Credit currency: In modern economy, the main forms of credit currency are cash in circulation and bank deposits, which are reflected in the deposits of individuals and units in bank accounts.

4. Electronic money: Electronic money is a new type of money developed on the basis of credit money. The difference is that credit currency is endorsed by the government: it has a value of 100 yuan because of the existence of the government, and we all believe that it can be circulated if it is given a value of 100 yuan. With regard to electronic money, Encyclopedia is defined as follows: consumers pay traditional money to issuers of electronic money, and issuers store the equivalent value of traditional money in electronic devices held by consumers in electronic form. For example, Alipay and WeChat. Most of the issuers of electronic money are private enterprises, that is, private enterprises play a leading role and the government promotes their application.

5. digital currency: digital currency is an unregulated digital currency, which is usually published and managed by developers and accepted and used by members of a specific virtual community. The European Banking Authority defines virtual currency as a digital representation of value. It is not issued by the central bank or authorities, nor is it linked to legal tender, but it can be transferred, stored or traded electronically as a means of payment because it is accepted by the public.