From Barter to Social Media Payment Platforms
By Dr Mahdi H Miraz Xiamen University Malaysia
‘
My
Brilliant Second Life ’ was the title of the workshop conducted by the Chester and North Wales branch of the British Computer Society , circa 17 years ago . In fact , through this particular workshop , I and I believe many other participants were first introduced to the concept of a virtual currency ( of the Second Life ) i . e ., the Linden Dollar , which could be exchanged for real world currency . Second Life has a closed-loop economy where the Linden Dollar is used . However , the Linden Dollar , in fact , was not the first digital currency . The history of digital currencies dates back to 1989 when DigiCash first materialised and conceived by David Chaum in 1983 . DigiCash was first supported by the ‘ Mark Twain Bank ’ of Missouri , USA - which was later acquired by the Mercantile Bank , followed by Deutsche Bank of Germany . Unfortunately , DigiCash was unable to grow , and the company later went bankrupt . The major reason for its failure is that it entered into the market well before electronic commerce ( e-commerce ) became totally integrated within the realm of the Internet . In fact , e-commerce , and electronic payment ( e-payment ) systems are now considered as a complementary duo – one cannot survive without the help of the other . Various emerging e-payment solutions , such as mobile , social media , peer-to-peer ( P2P ) payment platforms as well as cryptocurrencies , have significantly contributed to the recent proliferation of the e-commerce industry . Another catalyst of the recent proliferation of this duo is obviously the COVID-19 pandemic . Contactless payment as well as online shopping have both contributed to contain the spread of the virus .
One of the major catalysts of the human history of the last 3,000 years is money , including the exchange of commodities – more commonly known as the barter . In the contemporary realm of the ‘ connected ’ economy , spending a day without exchanging any sort of money , be it cash or cashless , is nearly impossible . From barter to the envisioned Libra of Facebook , from consensusbased Yap society ’ s Rai ( Fei ) stones , ( see Figure 1 ) to blockchain enabled cryptocurrencies , from traditional paper currencies or minted coins to contactless plastic cards or wearables . Time and time again , money has gone through several different forms , in order to address the human needs of any distinct era , aligning with and / or adopting the technologies that the particular era has offered .
We have now entered into a cashless world , where different technologies , such as mobile payment platforms , have even set foot in the activities of the street beggars , ( see Figure 2 ). In some countries , including China , beggars and hawkers are now seen to utilise mobile payment systems based on Quick Response ( QR ) code , in order to receive payments for the alms they earn through begging or for the products they trade . On the face of it , such widespread adoption and diffusion of payment technologies may seem to be a great blessing . In fact , there are certainly many more background issues than meets the eye . Further study , especially in terms of ethical , legal , privacy and regulatory aspects , are needed . Government agents also need to take appropriate steps , particularly in terms of monetary and regulatory point of view .
With the widespread diffusion of the Internet as well as the advent of smartphones , there are now innumerable desktop , web , and mobile applications ( apps ) available to satisfy various
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