Money is an integral part of the functioning of any society. The origin of this term is quite interesting. The minting of coins of Ancient Rome was carried out in a place specially designed for these purposes - the temple of the goddess Juno Coins, on behalf of which the English word occurs - money (money). The development of human civilization entails the development of all spheres of its life, including financial. The ancient equivalent of money can be considered furs and animal skins, then silver and gold (metallic money) and, finally, paper money came into circulation. A special kind of modern cash is credit money, the appearance of which is associated with the rapid development of the banking sector . This money does not have its own value as such and exists only in the form of digital signs certified in one way or another. In other words, we can say that credit money is a kind of debt obligation, paper cost signs that arose on the basis of a loan in exchange for gold.
Over the life of the entire banking system, credit money has evolved from bills to credit cards and electronic money.
The first variety of this type of cash in Russia was a bill of exchange, which is an ordinary written obligation of a debtor to its creditor. Bank bills are issued, as a rule, only if there is a certain amount of money in the borrower's current account. Treasury bills are special debt obligations not to the bank, but already to the state and relate to securities issued for a period of 3 months to a year. Treasury bills can be purchased in the current securities market. Their repayment is carried out by the central banks of the country on behalf of the Ministry of Finance.
At the end of the 17th century, a new type of credit money appeared in Russia - banknotes, the right to issue of which had only the central bank. The country's rich gold reserves precluded the possibility of depreciation of this type of cash. Banknotes at any time could be exchanged for gold. The main distinguishing feature of a banknote from a bill is its perpetuity.
The process of creating commercial banks demanded the emergence of a new type of cash, they were checks, which are a special kind of bill of exchange, a written order from the owner of a certain account to pay the amount of money indicated in it to the check holder. A check can be issued to both the commercial and the central bank of the country. Automation of banks and cash operations preceded the emergence of succeeding credit card checks issued by banks in the form of a plastic card with a microcircuit deposited on it based on the customer’s account.
Credit money and its types were an integral part of the emergence and development of the capitalism system, one of the main features of which was the circulation of money, which caused a number of consequences that are economically important for the country. The capital cycle ensures a constant flow of money, which is most often carried out through lending. In this case, the main form of cash flow becomes credit, the main form of payment is credit money.
Summing up, we can say that credit money is inextricably linked with such a phenomenon in the economic life of the country as capitalism, and gained the greatest distribution with the development of commodity-money relations. Their main distinguishing feature from paper money is their origin. Paper money can only be issued by the Treasury, while credit can be issued by commercial and central banks in the form of checks, bills, credit cards, banknotes, and electronic money.