THE FUTURE OF MONEY Bernard A. Lietaer - library.uniteddiversity ...

US dollar by treaty, as long as it is accepted as reserve currency), or a
geographically disparate group (such as Internet participants).
Finally, the key function that transforms the chosen object into a
currency is its role as means of payment. Notice that the words 'means
of payment' are used instead of the more traditional 'medium of
exchange' (see sidebar). The nuance is useful to be able to include
transactions, which have ritual or customary purposes, instead of just
commercial exchanges. After all, it is only in Western culture that
total priority has been given to commercial exchanges, neglecting the
other purposes for payments.
There are also other functions that today's money tends to perform,
such as unit of account, store of value, tool for speculation, and so
on.'" However, for the purposes of this book these functions are
comparatively secondary, considering that there have been perfectly
effective currencies that did not perform some or all of these other
roles.
In summary, the 'magic' of money is bestowed on some 'thing' as
soon as a community agrees on using it as a means of payment.
The origin of money's power
Besides magic, we also endow money with power. As Marcel Proust
observed, 'Material objects have in themselves no power, but, since it
is our practice to bestow power upon them...'" James Buchan
eloquently described our rationale for doing so: 'The difference
between a word and a piece of money is that money has always and
will always symbolize different things to different people: a banknote
may describe to one person a drink in a pub, a fairground ride to
another, to a third a diamond ring, an act of charity to a fourth, relief
from prosecution to a fifth and, to a sixth, simply the sensation of
comfort or security. For money is frozen desire.... That process of wish