Part I The Concept of Money and Monetary Systems, 1 The Concept of Money

Subject(s):

Electronic money — Eurocurrencies as money — Foreign currency systems and institutions — Concept of money — Exchange control — Functions and status of money — Monetary system — Theories of money

This chapter discusses the general concept of ‘money’, and examines the attempts that have been made to formulate a satisfactory legal definition of this elusive term. Economists have tended to define money by reference to some of its functions, namely: as a medium of exchange, as a measure of value or as a standard for contractual obligations, as a store of value or wealth, and as a unit of account. The proposed legal definition of ‘money’ reflects some of these economic considerations. The chapter then differentiates between the state theory and the institutional theory of money, before considering the modern meaning of money and its status as a means of payment. It also looks at electronic money, the status of foreign money, eurocurrencies, virtual currencies, and central bank digital currencies.