FROM GRAIN TO BLOCKCHAIN: THE TRANSFORMATION OF MONEY THROUGHOUT THE CENTURY

The article examines the historical evolution of money, spanning from primitive barter systems to contemporary digital assets, reflecting centuries of economic, social, and technological transformations. It thoroughly analyzes the key functions of money – including its role as a medium of exchange, a measure of value, and a store of wealth – within the framework of its historical development. The transition from commodity money, such as grain and salt, to metallic coins that standardized trade and ensured stability is highlighted. The paper also explores the significance of paper banknotes as a pivotal step toward modern fiat currency, whose value relies on societal trust and regulatory frameworks. The study delves into the evolution of banking technologies, which facilitated the rise of cashless payment systems and electronic transactions, forming the foundation of today's globalized financial system. Special attention is given to the digitalization of money, including cryptocurrencies, blockchain technology, and central bank digital currencies (CBDCs). The paper reveals the impact of decentralized technologies in reducing transaction costs, improving financial services accessibility, and enhancing transparency and security in payment operations. The risks associated with digital forms of money – such as cryptocurrency volatility, regulatory uncertainty, and privacy threats – are critically examined. The transformation of the state's role in ensuring monetary system stability is detailed, encompassing new regulatory approaches to digital assets and efforts to sustain public trust in currency. The paper underscores the importance of technological progress in shaping innovative financial institutions that can support the efficient functioning of money in the digital era. The interconnectedness of technological advancements with global economic shifts and their influence on traditional economic interaction models is illuminated. The prospects of integrating digital assets into financial systems are analyzed, emphasizing their potential to reduce costs, improve accessibility, expedite transactions, and stimulate economic growth. Challenges posed by the growing impact of digital assets on macroeconomic stability, regulatory mechanisms, and financial system inclusiveness are discussed.