User:Komonzia/draftspace
History of money
[edit] | This is not a Wikipedia article: This is a workpage, a collection of material and work in progress that may or may not be incorporated into Electronic funds transfer. It should not necessarily be considered factual or authoritative. |
| This is not a Wikipedia article: This is a workpage, a collection of material and work in progress that may or may not be incorporated into History of money. It should not necessarily be considered factual or authoritative. |
edit summary: /* Digital currency */ we shouldn't use HowStuffWorks if better sources exist - Wikipedia:Reliable_sources/Noticeboard/Archive_298#HowStuffWorks. Major rewrite. Some sentences were copied from the articles I've linked.
TODO:
[edit]- add no-bank transfer systems like M-Pesa, central bank owned systems like Digital rupee
- mention LVTS in Canada. 1999 to 2021
- mention ACH Network. 1960s to present
- mention Clearing House Interbank Payments System. 1970 to present. https://www.moderntreasury.com/learn/chips unreliable source.
- the flow for 'WU -> SWIFT / ACH / RTGS -> digital wallets' should read as being condensed, because the context is the history of money, not the history of EFTS
- Buy Now Pay Later systems and mention that they sometimes integrate with transfer systems (like PayPal, in 2008)
- add one stat which demonstrates the near-ubiquitous use of instant payment apps in China. Glean sources from https://www.sciencedirect.com/science/article/abs/pii/S1567422323000406 but do not use directly.
Development of electronic money transfer
[edit]Over time, different kinds of electronic systems have developed for different types of payments. For instance, some payments are more urgent calling for real-time gross settlement, and some are international requiring the usage of SWIFT or similar systems by banks.
These systems, generally developed with a motivation to avoid moving physical items (such as cash or cheques), were largely characterised by clearing via an intermediary (later, remote clearing) often with net settlement, allowing institutions to treat money as numbers in a database or ledger, not always correlating to cash.
- TODO: ACH, RTGS (no net settlement), CHAPS, SAGITTAIRE (French equivalent to CHAPS), Fedwire (no net settlement), BACS, SWIFT (no clearing or settlement managed directly by SWIFT).
In 2012, by number of transactions, 20 to 58 percent of transactions were electronic (dependent on country).[1] The benefit of digital currency is that it allows for easier, faster, and more flexible payments.[2]
Systems founded before Internet proliferation
[edit]Telegraphic wire money transfer services such as that first created by Western Union pre-date computer technology for doing so. Clients sent funds remotely via telegraph, using telegraph offices as intermediaries for clearing the payments. Founded in 1851, by 1877 Western Union's service was used to transfer almost $2.5 million each year.[3]
Telex networks were later used for this purpose. They were developed from the 1930s onwards, but were not fully automated. For interbank payments, these networks were superseded internationally by SWIFT, beginning in 1973. As of 2011, SWIFT is also significantly used for security payments and other data, with half of the messages being for traditional payments.[4]
For domestic payments, national automated clearing houses (ACH) and real-time gross settlement (RTGS) systems were developed. RTGS systems are typically used for high-value, urgent transactions, as compared to ACH.[5]
BACS was the first ACH system, operating in the United Kingdom in since 1968.[6] In the U.S., the first automated clearing house (ACH) was founded in 1972 by a group of banks in California seeking a replacement for cheque payments.[7]
The first RTGS system was Fedwire, launched in 1970 and operated by the Federal Reserve in the U.S.[8] In 1984, the UK operation of CHAPS began, and France had independently developed SAGITTAIRE the same year.[9][8]
Continued development of RTGS and ACH systems
[edit]...
- CHAPS's first inter-mainframe network, unsourced: Packet_Switch_Stream#Connectivity_to_databases_and_mainframe_systems
- not yet found evidence that CHAPS uses Internet Protocol
- there is a distinction between Bank of England RTGS and CHAPS: https://www.bankofengland.co.uk/payment-and-settlement/a-brief-introduction-to-the-real-time-gross-settlement-system-and-chaps
- CHAPS is managed by BoE only since 2017
- CHAPS and RTGS implement ISO 20022, since 2023, doesn't necessarily mean it's using Internet Protocol
- Inter-mainframe connections may be carried over IP (e.g. with a VPN-like system) without any changes being required to CHAPS and the other systems
- Fedwire development to using internet protocol: Fedwire#History
Modern systems
[edit][...]
Cryptocurrencies and distributed ledgers
[edit][Same as current content] but maybe add in Distributed ledger as it mentions central banks and bonds trading etc
- ^ Eveleth, Rose (24 July 2015). "The truth about the death of cash". BBC. Archived from the original on 30 December 2018. Retrieved 4 December 2018.
- ^ "Understanding Digital Money – Advantages of Digital money| Motilal Oswal". Archived from the original on 12 January 2020. Retrieved 12 January 2020.
- ^ Standage, Tom (2007). The victorian internet : the remarkable story of the telegraph and the nineteenth century's on-line pioneers (Pbk. ed.). New York: Walker. p. 119. ISBN 9780802716040.
- ^ Annex 1: The History and Detailed Functioning of SWIFT. ECahiers de l'Institut. Graduate Institute Publications. 6 September 2011. ISBN 9782940415731.
- ^ Michael Tompkins; Ariel Olivares. "Clearing and Settlement Systems from Around the World: A Qualitative Analysis" (PDF). www.payments.ca. Retrieved 19 November 2018.
- ^ "Half a Century of Bacs Payments". Bacs. April 17, 2018. Archived from the original on June 18, 2020.
- ^ James McAndrews. "The Automated Clearinghouse System: Moving Toward Electronic Payment" (PDF). www.philadelphiafed.org.
- ^ a b Committee on Payment and Settlement Systems of the central banks of the Group of Ten countries (March 5, 1997). "Real-time gross settlement systems" (PDF). BIS.
- ^ "Recent developments in UK payment clearing systems". www.bankofengland.co.uk. Retrieved 20 June 2021.