Where Is Your Money?

In our all-digital economy, only the computer knows

Once upon a time, when banks observed the gold standard, every dollar was backed by an equal amount of metal. Put simply, your money was in the vault. But now cash is all most people ever get to hold, and as the dollar goes digital, the only tangible vestige of your wealth will soon be the computer that keeps track of it. So where is your money today?

What's not in your wallet is in a spreadsheet in what's called a core data center, a massive concrete building full of servers. But really, says information-security executive John Meakin, "your money is everywhere." Like credit-card companies and Wall Street brokerages, Meakin's London-based bank backs up information across data centers; his are in the U.K., Hong Kong, Kuala Lumpur, Singapore and Chennai, India. What he means by "everywhere" is that with ATMs and online banking, servers can deliver your money anywhere, anytime. But don't go on faith. As a financial citizen, it's important to understand how the digital bank knows what you're worth.

Where Exactly is Your Money?:  funnelinc.com

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5 Comments

Careful on how you state that

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Everyone uses money. We all want it, work for it and think about it. If you don't know what money is, you are not like most humans. However, the task of defining what money is, where it comes from and what it's worth belongs to those who dedicate themselves to the discipline of economics. While the creation and growth of money seems somewhat intangible, money is the way we get the things we need and want. Here we look at the multifaceted characteristics of money. Some say it is the love of money that is the root of all evil. Others say that the only people, who believe that, are the ones who don't have any money. Regardless, it seems so much more important during a recession. More people are getting payday loans yet donations to foundations and charitable contributions have increased from some people. (Some no doubt in order to get a tax break, but hey – every little bit counts.) How do you feel about payday loans and money?

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