Mr. Utkarsh Kewal Kamble, Dr. Asawari R Durge 01 01 This paper examines the historical and economic evolution of monetary systems focusing on the transition from commoditybased currenciessuch as gold and silverto paper money By tracing key developments from early barter systems to the establishment of fiat currency regimes the study explores the economic motivations institutional changes and policy implications underlying this shift The research analyses the advantages and limitations of commodity money including intrinsic value and supply constraints and contrasts them with the flexibility and risks associated with paper currency Through a combination of historical case studies and economic analysis the paper highlights how the transition enabled modern monetary policy while also introducing challenges such as inflation and currency instability The findings contribute to a deeper understanding of monetary evolution and its relevance in contemporary financial systems Copyright (c) Journal of Science Engineering Technology and Management Science. All rights reserved 2026