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Home > Money and Credit Conversion > About Money > Money primitives
The three “primitive” monetary operations are the following:
Issuance — this is when a money token (in whatever form) is transferred from its issuer to another party, it is the moment when money is created.
Transfer — when money is transferred between two parties, none of which is its issuer.
Cancellation (also called money destruction or money deletion) — when the money token returns to the issuer, thereby ceasing to be money, but possibly retaining some intrinsic value, as with a coin.
To that we can add a fourth operation, which is the exchange of tokens:
- Exchange — a simultaneous transfer of money between two parties.
That is all there is, and there is no mystery in it.