There has been a debate among economists and financial experts about whether the traditional functions of money are still relevant in the modern world. Some argue that the rise of digital currencies and the increasing use of non-cash payments have rendered the functions of money obsolete. However, others maintain that these functions are still essential and relevant.


Money has traditionally served three primary functions:

• Medium of exchange: Money allows people to buy and sell goods and services without the hassle of bartering.


• Store of value: Money can be saved and used at a later date, providing a way to store wealth.


• Unit of account: Money serves as a common measure of value, allowing people to compare the prices of different goods and services.

The emergence of digital currencies like Bitcoin has led some to question whether the traditional functions of money are still relevant. Digital currencies can be used as a medium of exchange and store of value just like traditional money. However, their value is highly volatile, making them less reliable as a unit of account.


Another development that has led some to question the functions of money is the increasing use of non-cash payments. Credit cards, debit cards, and mobile payment systems allow people to make purchases without physically exchanging cash. However, these payment methods still rely on traditional money as the underlying value.


While the rise of digital currencies and non-cash payments has certainly changed the way we think about money, the traditional functions of money are still relevant. Money continues to serve as a medium of exchange, store of value, and unit of account, even in the digital age. While the form of money may change, its fundamental functions remain unchanged.