See this N50 naira note looking like Ankara in your eye. Many of you have possibly forgotten we had such a note before the new N50 note made of polymer in circulation today.
Many did not meet the former N5, N10, N20 and N50 because they were born a little later in this generation.
Let us understand money and what is happening to money and us;
1st let us establish the fact that money is a commodity just like rice, beans, phone, bread, cloths and other commodities in the market. Some people buy and sell money, fact established.
HOW MUCH IS MONEY?
5 things determines the cost of money;
Production (printing/minting)
Transportation
Security
Handling
Maintenance
Money is not FREE.
1. Printing and minting.
Money is spent to buy special paper, security foils, inks, minting machines purchases/maintenance, payment of workers, etc
You see that before you can see money to make and spend, money has already been spent.
The cost of producing N10 note could be tailored down to approximately N3 -N5
So if you spend N3 to print N10 the value of N10 is about N7.
Remember all your money is already taxed in advance 🤣
2. Transportation
Without money transportation and logistics with bullion vans, helicopters/chopper, trucks, etc, you cannot see money to withdraw from the bank across the counter or any ATM.
As you are reading this, huge amount of money is in transit to various bank branches (inter/intra bank)
3. Security
You cannot talk money without talking security. Any money without security is not money.
There are 2 levels of security in this section;
a. Against counterfeit b. Against theft
a. When you look through your paper money in front of light you will see the Nigerian coat of arm or an image printed inside the money which you will.not see ordinarily except you face the money at the source of light and look then look through it.
Then the foil, all these are planned and pit in place to ensure no counterfeit currency. Also remember that money has number. Each note has a unique unrepeated numbers, all these are in place for security including the signature of the current CBN Governor.
b. Have you seen a bullion van with no military police?
Bullion vans are bullet proof and fortifying a vehicle to become bullet proof is not N1 50 Kobo.
Military police are paid for escorting money to safety.
Setting up a strong room where money is store is not N1.
Buying a safe with number combination lock is not cheap either. Even ordinary padlock is not FREE.
4. Handling
Money is being packaged in bundles; N20k N50k, N100k. That packaging is not FREE. The rubber band or that plastic money bond and paper labels are not FREE. Handling cash is easier with packaging because you can withdraw N500k and you are given 5 bundles or N1000 notes where each bundle is N100k in a pack and that's N500k.
Money is counted, recounted, selected and then packaged and tied. The way itnis tied, you cannot slip a single note out. Please if you have not seen money in bundles go to the bank and make a bulk withdrawal or watch some other customers as they transact.
5. Maintenance
Money is being maintained and serviced because it is always in use. It is always passing from one hand to another so the wear and tear of money is sure to occur.
When a paper currency is old, dirty and feeble, there is a process of taking them out from circulation, destroying them and reprinting them with same number.
It costs money to track money, sort money, gather damaged ones, record them, deliver them to the mint for reprint.... It is not N1. The number of manpower/staff used to ensure paper money is made available daily is beyond your imagination. It is beyond the banking hall you work into everyday.#
Hmmmmmm.....
Having broken down the determinants of the cost of money....do you really think it's worth it to run an economy with paper money?
No!!!
That is why the Government of the day is battling to implement cashless economic system and the cashless system is gradually creeping in.
Back in the day, I would go to my bank branch where I opened my account to withdraw N1m, carry it with stress and fear to your bank branch and deposit it for you after queuing. The money will be counted and recounted before itnis lodged into your account. This is a long and uncessary process.
With technology, I sit in my bathroom and effect a transfer and you get credit alert in the same minute.
If you have not thought of what will happen to.paper money in the nearest future, you will be shocked one day.
I can transfer obscure figures to you such as N10,568.30 (Ten thousand, five hundred and sixty eight naira, thirty Kobo) with ease of it is online transfer
But you cannot have same amount paid 8n cash, where will you see 30 Kobo?😅
TheMap as an ICT company returns value to the society by providing alternative payments for sellers and buyers where you do not need cash to transact;
You either
Pay with Facebook or Google or pay with CashCredit.
CashCredit is the first ever naira crypto currency, developed and designed by TheMap, gradually creeping into the economy to create cashless transactions for both buyers and sellers.
If CashCredit can work for bus drivers, conductors, market women women/traders, Barbers, salon, aboki shop, etc then it can work for you.
Ask me about CashCredit and How it can work for you as a cashless payment and sales point system.
All you need is a phone and a registered SIMcard.
No need for smart phone or internet.
Let's change the face of money.
When money goes fully online and digitized, there will be no room to hide stolen money be you in Government or in the private sector.
Money can be tracked and traced.
In fact you will.need limited security, no.need for logistics and transportation of money, no.need for cash handling and packaging...
That's the nearest future we are gradually working toward to achieve today and we are almost there.
Thank you for reading.
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