Instytucjonalne i historyczne wymiary ewolucji form pieniądza

Abstract

Institutional and historical dimensions of the money evolution. The aim of the chapter is to show the evolution of forms of money, indicating the institutional determinants of changes. The analysis presented in the chapter shows that over the centuries – with the development of the economy and the increasing importance of trade – the nature and role of money have changed. At the same time, forms of money have also evolved – from primitive payers to modern electronic or digital money. The evolution of money was however supported by institutional changes in the economies and financial systems. Currently, fiat money coexists in the form of physical cash and electronic money, what results and is backed by evolved role of the central bank. The presented evolution of the forms of money confirms also a paradox of banknotes – on the one hand, there is a reduction in the role of cash in payment systems, and on the other hand, there is an increase in demand for high-denomination banknotes due to the value storage motive. The role of cash increases in times of crisis. At the same time, central banks are working on a new form of money – central bank digital currency (CBDC). The dual role of central banks in the provision of money (physical and electronic) to the economy is a proof of the strong institutional background in the evolution of the forms of money. The current phase of money evolution is also connected with strengthening of the role of central banks in economic life thanks to the increase in their importance in areas that have not been their domain so far. To sum up, the presented analysis shows that the evolution of money is strongly dependent on the changing role of institutions in the economy. Currently, the decisive one is the central bank, which is the main entity shaping the evolution of money. However, this broad and expanding role (from purely physical to digital as well) strengthens the central banks themselves.