Economy

What is currency? »Its definition and meaning

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Nowadays, a coin is a metallic piece in the shape of a disk to which the Central Bank, together with the mint, which is the issuing agent, assigns a value and goes out to circulate. With a currency people can pay and make monetary transactions. The word currency also refers to all the circulating money in a country, including banknotes, which are also a type of currency but on paper. Expressions such as: " The Venezuelan currency is a strong economy ", makes a generalized reference to what money is with the word.

Currently, coins are a representation, a measure of the value of treasures and riches minted in a bank, the materials with which current coins are made are highly resistant ferrous alloys but in ancient times, gold and silver were used to the coins.

The currency is a financial instrument that has undergone an enormous change since its foundations and this is due to the representation that it has had as a member of the economy. In its beginnings, pure gold was used as the currency with which bartering and exchanges were made. This gold came in the form of stones or " slabs " that over time were turned into small discs with an inscription or symbol that denoted its owner. The existence of the coins dates back to 560 BC in the Chinese dynasties, who knows if they could be obtained beyond that.

With the creation of the banks, the great owners of the " National " gold kept their treasures in them and in exchange for this, the banks delivered " Vouchers " with which the lucky ones paid and debited accounts, in this way the gold was not mobilized and it was kept safe inside the bank. Over time these "Vouchers" or vouchers were taking shape, better materials and different value until they became what it is today.