Many people wonder if the present system exists today can survive the effects of the global crisis and rise of the modern financial system which emerged in 2021. The current system is one that is based on the concept of deferred deposit interest. This is a system in which there are various currencies that are traded and a banking system is used to facilitate the transfer of these currencies between different individuals, banks, and financial institutions all over the world.
This system is known as international money transfer. This works like this. One international currency is one that belongs to one place such as the Euro, which belongs to the European Union and another is the United States dollar which belongs to the United States of America. In this system, money travels from one international location to another. But this is just one of the features of the modern financial system which we can observe.
There is another feature of this modern financial system that people are concerned about is the absence of the traditional concept of money. Virtual money was supposed to be the replacement for real money but this did not happen. Instead, this virtual money was created such that it functions like any other currency existing today. This virtual money is known as tokens or digital units that have no real value.
This virtual money has been created in such a way that it can be duplicated. It has no link whatsoever with the money in which it was created. It acts just like any other currency. One can use it to buy goods and services wherever and whenever one wants to. This virtual money also functions like any other type of currency. This virtual money is known as tokens.
Modern Financial system
The next feature of the modern financial system, which worries people is the issue of scarcity of this money in the future. Since it does not have a link with physical money. There is always a question of how it will be used in the future. The fear here is that people might not be able to afford the same things with this digital money.
However, there are reasons to believe that scarcity of this money in the future will never occur. The first reason is that the modern financial system has linked one thing with another. For instance, one currency can be paired up with another currency in the future. The pairing will allow for the transfer of money from one place to another. Therefore, the fear regarding scarcity of money in the future does not arise.
Read also: Best Bitcoin Wallet
The second reason why people are worried about this matter is that they think that it may lead to a situation where the system of money works against the interests of the general public. If the money is issued according to the price set by the general population, then there is a clear case of the distribution of wealth. Those who own valuable goods will also be able to enjoy these goods. Since the money is issued according to the price set by them, it would be possible for the commoners to gain access to these goods.
The third reason why people do not trust the present system of money is that they think that a universal replacement for this money will not work. If this replacement was to be made, it will not affect the present system. Since the present system of money works, then there is no need to replace it. Instead, people should focus on improving upon the existing modern financial system. This way, the public will be able to have access to its money in the future.