The currency that was used in the pre mordern world was
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The history of money concerns the development of social systems that provide at least one of the functions of money. Such systems can be understood as means of trading wealth indirectly; not directly as with barter. Money is a mechanism that facilitates this process.
Money may take a physical form as in coins and notes, or may exist as a written or electronic account. It may have intrinsic value (commodity money), be legally exchangeable for something with intrinsic value (representative money), or only have nominal value (fiat money).[1]
A currency (from Middle English: curraunt, "in circulation", from Latin: currens, -entis, literally meaning "running" or "traversing"), in the most specific sense is money in any form when in use or circulation as a medium of exchange, especially circulating banknotes and coins.[1][2][3][need quotation to verify] A more general definition sees a currency as a system of money (monetary units) in common use, especially for people in a given country.[4] Under this definition, U.S. dollars (US$), euros (€), Japanese yen (¥), and pounds sterling (£) exemplify currencies. Such various currencies are recognized[by whom?] as stores of value and are traded between countries in foreign-exchange markets, which determine the relative values of the different currencies at any given point in time.[5] Currencies in this sense are defined by governments, and each type has limited[by whom?] boundaries of acceptance.
Currency
Other definitions of the term "currency" appear in the respective synonymous articles: banknote, coin, and money. This article uses the definition which focuses on the currency systems of countries.
One can classify currencies into three monetary systems: fiat money, commodity money, and representative money, depending on what guarantees a currency's value (the economy at large vs. the government's physical metal reserves). Some currencies function as legal tender in certain political jurisdictions. Others simply get traded for their economic value.
Digital currency has arisen with the popularity of computers and the Internet. Whether digital notes and coins will be successfully developed remains doubtful.[6] Decentralized digital currencies, such as cryptocurrencies are not legal currency, strictly speaking, since they are not issued by a government monetary authority and are not legal tender. Many warnings issued by various countries note the opportunities that cryptocurrencies create for illegal activities, such as money laundering and terrorism.[7] In 2014 the United States IRS issued a statement explaining that virtual currency is treated as property for Federal income-tax purposes and providing examples of how longstanding tax principles applicable to transactions involving property apply to virtual currency.[8]