THE ROLE OF MONEY Essay

In actuality, electronic transactions become more and more popular. As a result, the prospect of the replacement of the paper money by electronic money becomes highly probably. On the other hand, many people are still confident in the paper money and they consider the paper money more reliable than electronic money. This is why the paper money still exists and competes with electronic transactions. Nevertheless, the younger generation prefers electronic transactions and the share of electronic transactions grows compared to transactions completed with the help of the paper money. In such a situation, electronic transactions are likely to replace steadily the paper money but electronic transactions are unlikely to substitute fully the paper money.
On analyzing the current situation in regard to payment methods and transactions, it is important to place emphasis on the fact that the paper money will give in to electronic payments in the future. At any rate, today, the share of electronic transactions grows fast, while the share of transactions completed with the help of the paper money drops. This trend grows stronger, especially compared to the late 20th century, when electronic transactions just had started to grow in their popularity.
The use of electronic money is quite effective because it is fast and convenient method of payment. This is why I prefer electronic transactions and so do millions of other people. In fact, electronic transactions allow people to save their time because they can make electronic transactions from anyplace and anytime they like. These transactions are fast and allow people to make transactions at the local, federal and international level. Therefore, electronic transactions are very effective.
On the other hand, there is the problem of security of electronic payments. In this regard, the problem of financial losses and stealing money through the use of electronic transactions are the major threats to the reliability of electronic transactions today. Nevertheless, banks attempt to introduce reliable security systems that protect clients from stealing their money or identity theft. As a result, electronic transactions are vulnerable to certain risks but their convenience still outweighs existing risks.
In such a situation, the paper money should not be fully eliminated because it is still a reliable method of payment. People are still confident in the paper money, while they are often uncertain in electronic money. In fact, money people view electronic transactions as just a convenient way of using their paper money. They are confident in electronic transactions because they are backed up with the paper money. As soon as the paper money are eliminated, people may start panic becoming uncertain in the electronic money.
The paper money can be used, regardless of the financial situation. For instance, if a bank has substantial problems, electronic transactions may not occur or delays in payments may occur. In addition, errors can occur in the course of electronic transactions, while paper money secure transactions, although there is a risk of robbery or physical loss of the paper money, when an individual just drops the wallet occasionally. Therefore, the paper money should be preserved.
Thus, in spite of the growing popularity of electronic transactions, the paper money should not be fully eliminated because they are probably less convenient means of payment compared to electronic payment but the paper money still are reliable.