The fundamental function of money is to serve as a medium of exchange. A person, who can provide a single skill, like making baskets for example, can earn money by selling them and then exchanging the money for their particular needs. The exchange of money is far simpler than trying to barter for goods of differing values.

It seems that we have almost come full circle. We are once again moving towards a cashless society, only this time our currencies are being replaced by cables and radio waves.

The question always asked when it comes to new technology, is how secure one's money really is.

Maeson Maherry, general manager of Namitech, a supplier of secure business solutions, says: “In the real world when a deal is concluded there is a signature or a receipt at the point of sale, proof that the transaction has been effected. In the past electronic transactions required an element of faith. Putting tangible evidence in place to prove that the transaction was signed by the correct person still needs to be addressed.

“The real breakthrough will come when the new electronic and communications transactions bill is finally promulgated. It will allow digital signing as opposed to a wet signature. This digital signing capability will not only combat fraud because it is tamper proof, it will also cut down on literally billions of pieces of paper now circulating in the commercial environment. It is estimated that some large financial institutions can spend R150-million a year just shuffling paper.”

Encryption technology will play a huge role in corporate risk management in times to come. A document shredder will be no match for secure electronic data storage. Maherry says that many companies are now storing their critical data outside of their companies to ensure integrity and to avoid the pains that the likes of Worldcom and Enron have had to endure.

The strong moves by authorities to ensure stricter requirements for corporate governance will filter down to the man in the street. Stock markets will become less volatile and investors should be able to rest a little easier. It may look a little daunting for neophytes, but over time these technologies will become a part of our lives and we won’t give them a second thought.

If you want to find out more about the move toward a cashless society, read the September issue of Leadership Magazine.