What we know today through the term financial market represents the result of centuries of evolution in economic theory. Despite expectations regarding the extinction of paper money, it is still not possible to imagine the world without an instrument that simplifies transactions.
Beginning with the rudimentary barter systems of primitive civilizations, where the surplus production of each individual was used as a means of exchange to supply their needs, the first known forms of coins appeared in the 7th century BC . The main problem with this exchange instrument was related to transport and security.
As a solution to the challenge, many began to choose to leave their wealth in the custody of people they trust. These were the goldsmiths, who, in return, delivered receipts to the depositor.
As the practice became more widespread, receipts also began to be accepted as a means of payment , giving rise to the figure of “ paper money ”. It was also at that moment that the definition of the functions of the intermediary agent began.
The goldsmith who issued deposit receipts was the embryo of the banking institution. Although the activity has historical records in the Phoenician civilization and the term was coined by the Romans, it was in the economic expansion of the late Middle Ages that the function of the bank became more known in Europe.