Topic: Could a country survive and maintain economic stability if it phased out cash? - page 2. (Read 1165 times)
July 19, 2017, 08:26:03 PM
Our economy around fiat is setup in the way that we can't really imagine how will Bitcoin work as a national currency. But might be in future we would see a Bitcoin based monetary system. It might sound impossible for now but adopting Bitcoin as a national currency could help countries like Zimbabwe and Venezuela because such a currency contains the potential to prevent the financial roller coaster. But it would create many problem in the ways monetary system is being run today. There is a requirement for Bitcoin based monetary system.
July 19, 2017, 05:43:22 PM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
I think a country would be able to survive just using crypto, but there are some things to consider:
1. The country would have to be technologically advanced and able to support the blockchain and Bitcoin. It would also have to be very supporting of Bitcoin and support for bitcoin would have to be over 80 percent of the population.
2. The cryptocurrency would have to be trustworthy and would have to be able to support heaps of transactions a minute and still be running super well. A congested blockchain would not be good for business.
This would be interesting to watch for sure, and might actually happen sometime in the future.
July 19, 2017, 05:14:00 PM
Economic model will be very unstable due high volatility of crypto. Current rate of crypto connected with market manipulations and country will not able to protect economic from such manipulations with price.
July 19, 2017, 05:03:42 PM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
Digital currencies by nature is volatile so obviously, when a country moved out from fiat and gets on board with cryptocurrencies then their monetary system will be unstable. This is unless they will create their own digital currency and will be centralized and be regulated by the government. That way, they will avoid volatility and sustain its stability. However, this is just a digital version of fiat.
On the other hand, I doubt this event will happen. Phasing out fiat is not a good way to go, for now.
July 19, 2017, 02:44:48 PM
Yes, a country could survive with just using crypto.
For the most part a lot of wat happens now is digital. Depositing a check automatically into your bank from your work or employment happens digitally. Not a lot of paper money exists.
They send a lot of it back to be burned at the FED. They incinerate it. I think eventually we will be all using some type of crypto or multiple cryptos. We would pay someone with one crypto and they know they can just convert into the crypto they want to hold or what not.
For the most part a lot of wat happens now is digital. Depositing a check automatically into your bank from your work or employment happens digitally. Not a lot of paper money exists.
They send a lot of it back to be burned at the FED. They incinerate it. I think eventually we will be all using some type of crypto or multiple cryptos. We would pay someone with one crypto and they know they can just convert into the crypto they want to hold or what not.
July 19, 2017, 02:06:17 PM
Phasing out cash would restrict and stagnate an economy over the long term.
Initially fees and restrictions would be low.
Once cash was eliminated however, electronic payment would have a monopoly.
That would give them free reign to hike fees sky high and people wouldn't be able to do anything about it.
Initially fees and restrictions would be low.
Once cash was eliminated however, electronic payment would have a monopoly.
That would give them free reign to hike fees sky high and people wouldn't be able to do anything about it.
July 19, 2017, 12:47:07 PM
For an advanced nation to change into fully digital wouldn't be too different than the way it is now. But to make the currency similar to the ones discussed here, it still wouldn't be smooth unless the government started a project of their own and progressively traded them against what they are currently using.
July 19, 2017, 12:32:20 PM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
Define digital currency. I could live out the rest of my days using only my debit card which, some could argue, is technically "digital" money. I rarely if ever use cash.
July 19, 2017, 12:18:23 PM
We're moving towards that idea slowly, a country couldn't easily replace cash with digital cash in short period of time, but almost all the advanced countries are doing it from 20 years ago and it will continue it's progress until another 20 years at least.
July 19, 2017, 11:08:12 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
It is not form of currency but peg value which matters while counting stabilization or destabilization.
Peg value refers to value of reference coin or asset on which value of coin depends. So when country decides to opt for digital currency instead of hard cash, what really counts is whether that digital currency is pegged to fiat money of country or being left to free play of market.
If pegged to fiat money, it will be just hard cash on internet. For example, E-Dollar or USDT.
But if being left to freeplay of market, its value will appreciated or depreciated every second owing to market and create dynamic unstabilised economy.
July 19, 2017, 08:36:24 AM
I am pessimistic this can be done. I do not think it's so easy that the state sutu eliminate paper money just like that. Especially for developing countries. Because not everyone will immediately understand how to transact using digital money. This need technical that in long enough to introduce to every citizen. All that can be done. But it needs a step to be done. Improvements in education issues become one of the examples that must be addressed. So to eliminate fiat money from circulation it is not as easy as turning your palms. Socialization of digital money must continue to be done. And this will not happen quickly. So I guess that's not easy. Need a very long process. Need to learn from countries that already use digital money to transact
July 19, 2017, 08:26:44 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
It depends because not all countries can adopt digital currency, Maybe tier 1 countries can do that but always expect government intervention. Before it will pass it will walk first on the trail of debate, it will be become stabilized if the value is also stabilized.
July 19, 2017, 06:13:19 AM
97% or more of the USD, EUR etc is already digital - ie almost all of it's made up numbers.
If you mean adopting a cryptocurrency as we know them now, it would be a complete and utter disaster.
If you mean adopting a cryptocurrency as we know them now, it would be a complete and utter disaster.
It would be fun to watch though.
I don't think any country in their right mind would adopt any of the public, already existing cryptocurrencies. I could however imagine a country using a cryptocurrency (or blockchain) of their own, as you could reflect most fiat properties in a cryptocurrency protocol (controlled inflation, proof of x, etc). However at this point you might as well just use a federated system of digital transactions, ie. banking as we know it.
July 19, 2017, 06:04:33 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
It depends on the country. From where I come from, it simply won't survive. This digital era has not yet reached many corners of my place. The majority does not have smart phones, much less internet. Digitalized transactions in the market will be very foreign to them. I don't know in other countries who are much more advanced if it is possible.
July 19, 2017, 05:57:45 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
Firstly, this will never happen even in a hundred years. What will be they're reason to do these?
And if they will be doing that, I know there are a important or really good or great reason to do so. And if they will be phasing out cash, what will they be using? Crypto currencies? which is still not stable and so volatile? If they will be doing this kind of decision, digital currencies must be really stable, also, they will find a way to tax these digital currencies and it will become centralized and not pseudo anonymous anymore.
July 19, 2017, 05:43:34 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
Firstly for that to happen, the entire country would have to be super advanced, and the only country that I think could do this would be Japan. The country would only become destabilized if the currency that they swapped to was decentralized such as bitcoin, or not made by the country itself. For fiat currencies to go, people need to be trusting in the new currency and it would have to have clear benefits over fiat currencies.
July 19, 2017, 05:37:31 AM
I can't see any reason why any country would phase out cash if it is going to cause a chaos in the economic landscape.
Sweden and Denmark have pretty much done it already. Others will follow a lot sooner than we realise. The state of a country's development is key. It was chaos when they attempted to move towards it in India.
July 19, 2017, 05:19:59 AM
I can't see any reason why any country would phase out cash if it is going to cause a chaos in the economic landscape. But for it to be done, something much better would have to replace it. I am not sure if cryptos are the way to go, but there might be other forms yet to be invented by mankind that can replace cash altogether. Bitcoin is still pretty young in terms of existence and only the future can tell whether it endures and becomes mass adopted.
July 19, 2017, 04:54:20 AM
97% or more of the USD, EUR etc is already digital - ie almost all of it's made up numbers.
If you mean adopting a cryptocurrency as we know them now, it would be a complete and utter disaster.
If you mean adopting a cryptocurrency as we know them now, it would be a complete and utter disaster.
July 19, 2017, 04:53:59 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
No and No! Definitely not at the current situation! Firstly if the government phases out fiat money, then all of its citizens need to be technically sound to be able to use digital money and technical infrastructure needs to be improved. So only few and small countries in the world will be able to handle this. Like Japan, Hong Kong and Singapore.
But for countries like China and India, it will be a disaster where only a handful percentage of people are tech-savy. Instead of moving in to a digital currency, it would be a great idea to move towards digital transactions. Instead of cash, people should be encouraged to use cards. That is the first step to be taken so that the economy doesn't have any bad impact.
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