MONEY TRANSFORMATION AND DIGITALIZATION PROCESS

The story is as old as the story of civilization. People used many different objects as a means of barter, from animals to grains, from clay, paper, mussels or sea shells to precious metals, before gold, silver and other precious metals to obtain the objects they need. Although it is highlighted, it should not be forgotten that there is a trust phenomenon built on the debt-credit relationship on the basis of money. In other words, money should be seen as a relationship of belief and trust between the debtor and the creditor rather than any metal. Because money is essentially a measure of trust in other people rather than the value of an object. For a long time in world history
money reigned, from the 17th century.Since then, paper money has started to become widespread. The banking system has developed in this process, and central banks have been established as "authorized institutions" in order to control the money, which is on the axis of the modern economic system, by the states. For a long time, the indexation of paper money to gold in the reserves of central banks continued until the First World War. During and after the war, the gold standard was abandoned by many countries. Afterwards, the efforts to return to the gold standard were mostly unsuccessful. With the development of the banking sector, money took on a dematerial status beyond the representation determined by the central banks. With the indexation of the US dollar to gold in 1944, it was decided that countries would fix their exchange rates to the dollar, not to gold, and the dollar was accepted as the reserve currency. With the abolition of the practice of indexing the dollar to gold, known as the Bretton Woods system, by the USA in 1971, the gold standard system in the world came to an end.
Thus, the US Federal Reserve (FED) has come to a position to release any amount of dollars it wants to the market. After that, money came to the forefront as an important policy tool on a global scale and increased the effectiveness of the hegemony of the USA. On the other hand, technological development, international trade and excessive expansion of finance brought innovations for money. For the first time in the world, American banks started the electronic transfer of money, defined as EFT, and led the process of digitalization of money.
and ATM usage followed. After the millennium, people started to perform their transactions with debit cards instead of holding cash in their hands, and with the development of technology, money has evolved towards digitalization and virtualization. For example, in the USA Two-thirds of personal purchases are made by bank or credit card. With the introduction of money into the electronic environment, different electronic payment methods have emerged. Electronic money and payment methods (credit card, PayPal, electronic money, e-cash, electronic check, e-wallet, peer-to-peer and mobile payment, escrip, IPIN, PcPay) have increased in volume and variety. In this framework, money gradually loses its physical quality and becomes digital. In this respect, the further development and spread of technology will bring a much different dimension to the digitalization of money in the future. Considering the said transformation, the question of whether currencies will lose their physical qualities in the future comes to the fore. Therefore, it can be said that the digitalization experienced in the transformation of money is the product of a sixty-year-old technology. With the development of technology, the virtualization of money brings with it some difficulties. For example, the systems behind credit or debit cards are open to hacking and the risk of the cards being stolen is quite high. It is known that thousands of stolen credit cards are bought and sold in the dark corners of the internet. With the spread of electronic money, the problem of information security also reveals problems such as paying high costs in transfers. From this point of view, systems where people can perform their transactions safely, as inexpensively and quickly as possible.They can be said to be needed.