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What is Cryptocurrency A new word emerged in our lives two months after the beginning of the recession of 2008 and gradually transformed from a vague expression ("virtual coin") to the vocabulary used to characterize the new economy. On June 9, 2009 the first bitcoin was released by an anonymous person called Satoshi Nakamoto. For different reasons like the sub-prime crisis, Nakamoto, claimed he is a Japanese man in his 30's, said he gave the open protocol in 2007. Today the new coin is called a "Digital Asset" and decentralization is the principal idea behind it: there's no main institution responsible for regulating it. The most familiar and traded form of Blockchain's technology, Bitcoin, who has crossed the $15,000 lines way back and has shows an image of exponential increase in the past few months. The great advantage of blockchain technology is that it doesn't have to keep records for a large central computer or big managing company. With this ...
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Origin And History Of Bank

Origin and History of Bank

The word bank has become an integral part of our life. Our society, work, and life are directly or indirectly dependent on banks. But, do you know how this banking system came into existence? Well as always there is a story here as well.

The word ‘Bank’ is derived from a word banca, which means bench in Italian. The foundation of modern bank has an interesting story, many geopolitical and religious activities has created today’s Modern Banking System

Story

During medieval Europe, silk route from Asia to Europe via Middle East, gave an opportunity to trade related activities. Traders from silk route brought ancient practices of financing long route trade along with them. Around that time, Jews were persecuted in Spain, many of them came to Lombard, Italy.

Jews were not allowed to own land in Italy, so they started trading in halls and piazzas (a kind of square market area) of Lombardy. They started to lend money to farmers as a high-risk loan which they learned from traders of silk route. As Christians and Islam, stated usury as a sin, there were very handful competitors left for Jews in Lombardy.




The Jewish traders carried their trading and financing activities while sitting on a bench in halls and piazzas of Italy, hence the Italian word banco for bench, became bank as we all know today.

However, a question emerges if Jews learned trading and financing activities from merchants of Asia, was there any kind of banking system in Asia before Europe?

Answer is yes, there was a sort of banking structure in Asia before Europe, but it was mostly depended on barter system. Earliest form of banking is recorded in 3rd and 4th BCE in India, China, Mesopotamia and Persia, record shows, some parts of Egypt and Greece had banking system in 5th century BCE.

Earliest form of banking in Asia

In India, Vedas have stated methods of earning righteous money, were earning interest by lending was mentioned. Beside this, during Maurya Dynasty (321 to 185 BCE) an instrument called adesha was used, it gave banker the power to lend money to third-person, just like bill of exchange of today’s world.

China, during Qin Dynasty (221 to 206 BCE) saw standardization of Chinese coins and lead the development to letters of credit.

In Babylonia, Mesopotamia (2000 BCE) people depositing gold in temples had to pay 1/6th amount to temple, then that amount was used to lend other people like traders and farmers for their trades and harvest.

Modern Bank


During trading, ideas from one part of the world travelled to other parts of the world. Accumulating these concepts lead the foundation of modern bank in Genoa, Italy in 1407 as Bank of Saint George. Imperialism lead the idea of bank spread every corner of the world, as barter system started to cause limitation in trade, merchants started to use Gold and Silver as a currency which was acceptable to everyone.

Soon, traders began to deposit their gold and silver at goldsmiths. This created a vast repository of gold and silver which, goldsmith started to lend people and earn interest, they also gave some interest to people who deposited gold and silver. This created a cycle and goldsmith became a new kind of bank practices. Because of huge wealth, government regulation was imposed and gave rise to the first central banks.

Soon, this success story had spread and gave rise to multiple finance institution around the globe. Government regulation made interest rate, tied up and created a sense of safety among the minds of people and traders. Regulating these finance institute also gave people from all background the ability to lend and invest without risk. This risk-free investment is still considered as the best method of investment by many.
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Imperialism and Rise of Modern Banking

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Credit-Debit Explained

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