Present day banking systems have made life easier for individuals who want to keep their assets safe. Not only do banks help you safely deposit and save your money, but also take loans, which can be benefiting during emergencies. Banks can be categorized under the risk management form of business.
Currencies are classified under three groups: commodity money, representative money, and fiat money. The three categories are subdivided depending on the type of asset. Goods, services and precious metals fall under commodity money, bank notes that prove the possession of commodities kept for security at the bank fall under representative money and fiat money encompasses the money that individuals circulate on a daily basis. Fiat money can only be valued when its creators are in existence. Fiat currency is created when the central bank of the nation exchanges assets that involve new money with private banks. The new money can be loaned out to people as credit.
The risk management industry is sometimes referred to as gambling. The 2008 Neiman-Marcus housing crisis is one of the major disasters that shook the industry. Not adhering to principles, zero ethics and plain illegalities are the reasons why such crises happen. The institutions were saved thanks to the bailout by the American government and the European Union. The bailouts prevented bankruptcy. The catastrophe that hit the finance industry in 2008 led to the creation of alternative and better banking models.
To infuse ethics in the industry, investment banks resolved to restrict commissions and make private investors pay a fee on a yearly basis. To put it in simple terms, this model can be equated to simple subscription services like HBO and Netflix. The two companies mentioned getting their revenues from the monthly charges subscribers pay, unlike traditional media where income is acquired via third parties like advertisers.
Cryptocurrency has been a popular trend in the recent past. Bitcoin is a free currency that no federal government or financial institution can control. Bitcoin is a computer code, not managed by any organization. Bitcoin and other cryptos work like speculative investments that get their value akin to fiat money. Traders agree on the value. The software that creates the cryptocurrencies is open sourced. The good side about this is that practically everyone can create a cryptocurrency. The negative side is that a lot of real and parodic cryptocurrencies have flooded the market. They include Jesuscoin, Trumpcoin, CoinYe, and Dogecoin.
PSI Pay offers a tremendous digital payment service to both companies and individuals across the world. The company is the first Westen Union online wallet agent based in Britain. PSI’s pay transactions are safe and trusted and will go a long way in helping with universal trading.