Have you ever wondered how would the world's economy be like in the future as a cashless society?
Perhaps, with the increased traction of blockchain acceptance nowadays, could lead to the creation of digital fiat currencies powered by blockchains that are managed by governments themselves. With this in mind, there would be no need for physical cash, as digital fiat currencies would provide many advantages such as quick settlement, global payments, full transparency, implants use on citizens to make payments, and more.
If this becomes a reality, which I'm sure that it will, it would radically transform our lives for the better and reduce criminal activity as a result of the full transparency and auditability that a digital fiat currency would have thanks to the power of the blockchain technology.
Also, it makes me wonder if cryptocurrencies like Bitcoin would exist by that time, or will they co-exist with digital fiat currencies.
Nevertheless, I would like to know your opinion about this.
I dont necessarily think this (a cashles society, not my own miserliness) is healthy. For example, during a financial crisis, it became impossible to put failed banks down "out of their misery" becasue they would take the cash machines and clearing functions etc with them. As a result we have been lumbered with a zombie economy ket alive on a drip feed. This is more an argument for separation of clearing and investment banking functions than for cash.
If we are to have a virtual payments system (and I can see the advantages) I would prefer it to be run by Government with fixed (1%?) charges for all users regardless of size, so as not to disadvantage small traders. There are small businesses that have to charge a fee for virtual transactions or require a minimum spend becasue of the high fixed commissions charged by the payments systems.
A virtual payment society is absolutely dependent on electronic systems.
Cash is flexible and but part of this is that it enables transactions off the taxation and illegal activites radar - whether this is a good thing or a bad thing depends on the situation. Generaly speaking he advantages of living in a well governed country supported by taxes outweight the advantages of anarchy.