Case-2 : From Cattle to Crypto: How money powers Modern Economies.

Background :

Kenya, a rapidly growing economy in East Africa, has undergone a significant financial transformation due to the rise of mobile money platforms, such as M-Pesa. M-Pesa operates through smart phones and an extensive agent network, allowing customers with an eligible cell phone and SIM to transact with their phones and in cash at agent locations. Customers can send and receive local and domestic payments, pay bills, save, and get credit. In rural areas, people traditionally used barter systems or even livestocks as a form of economic exchange. With technology, the country has increasingly shifted towards digital money. Mobile money users increased tremendously from 10 million in 2010 to 32 million in 2020. Bank account usage increased from 25% to 82% over the same period.

Problem :

To analyze how the core functions of money operate in a modernizing economy, and how does the shift from traditional to digital money enhance or challenge these functions.

Questions :