A monetary system is a system that facilitates the use of money as a medium of exchange. It is composed of three elements: a currency, a payment instrument, and a mechanism for establishing payments. Currency can take the form of coins or bills, while payment instruments include cash, checks, and other forms of digital money. The mechanism used to transfer payments is usually a financial institution or an online payment platform. In a good monetary system, the currency should be valued by its users and there should be sufficient liquidity and an appropriate level of trust in the system. All these components should work together to enable an efficient and stable process of exchange.

See also: crypto, evolution, evolutionary computing, money-on-money return, mutual credit