If they adopt an outside crytocurrency rather than making their own cryptocurrency
could be disastrous to their economy. by making and implementing their own cryptocurrency
they will have the ability to manage, regulate and make changes to the currency if needed.
It will take several years for them to completely phase out their cash, but if they were(a country) to
implement these changes everything must be perfect otherwise it could lead economic disaster.
Topic: Could a country survive and maintain economic stability if it phased out cash? (Read 1146 times)
July 21, 2017, 08:21:10 PM
July 21, 2017, 07:06:26 PM
Imagine you want to sell your used car. Have a yard sell to get rid of things you no longer use.
Cash makes these things easy. Once cash is outlawed these things become much more difficult.
Phasing out cash cripples the economy in many ways. Limiting cash transactions has the same effect to a lesser extent.
Cash makes these things easy. Once cash is outlawed these things become much more difficult.
Phasing out cash cripples the economy in many ways. Limiting cash transactions has the same effect to a lesser extent.
July 21, 2017, 06:24:42 PM
No, it will never happen because the government will never accept any other currencies, especially digital ones to replace their national currency. Even if in the worst case scenario, the government will know how to maintain their money for the whole countries, unless they collapse
July 21, 2017, 06:07:40 PM
If you mean digital currencies are crypto currencies then yes it will be disaster and there will be uncontrollable inflation and deflation, crypto currencies never meant to be created as main currency in a country because it is decentralized, making crypto currency as your country main currency can cause your country being controlled by whale
So true. A government wouldn't let the crypto control the faith of the nation. It will be a disaster if a country, how stable it is, would totally depended on crypto. One reason is the price volatility. How can a citizen do a budget for a family if the price continues to fluctuates everyday and can be manipulated by the rich and powerful. Those country would be at the mercy of those big entities which any government in the world would not want happened otherwise, a total collapse not only of their financial industry but the whole nation itself.
Also, if a government wanted it could easily stop crypto from working as a currency altogether. All they need to do is block websites related to Bitcoin and everything would come crashing down.
I dont see any downfall if a country fully adapts digital currency but what would really affect a country is if its infrastructures would go down or a country has no businness to conduct. It would just be another era if governments would acknowledge cryptocurrencies. Because an entity has lots of gain once it adopts btc in its core if they know how to manipulate it. We cant just block or stop cryptocurrency jusy because its a disease, we have use it as our advantage.
July 21, 2017, 06:01:33 PM
If you mean digital currencies are crypto currencies then yes it will be disaster and there will be uncontrollable inflation and deflation, crypto currencies never meant to be created as main currency in a country because it is decentralized, making crypto currency as your country main currency can cause your country being controlled by whale
So true. A government wouldn't let the crypto control the faith of the nation. It will be a disaster if a country, how stable it is, would totally depended on crypto. One reason is the price volatility. How can a citizen do a budget for a family if the price continues to fluctuates everyday and can be manipulated by the rich and powerful. Those country would be at the mercy of those big entities which any government in the world would not want happened otherwise, a total collapse not only of their financial industry but the whole nation itself.
Also, if a government wanted it could easily stop crypto from working as a currency altogether. All they need to do is block websites related to Bitcoin and everything would come crashing down.
July 21, 2017, 05:54:08 PM
I think it could. Some of you seem to think cash is needed but 50 years ago, before the beginning of internet banking, we thought cash is the only viable way of payment. Then 10% was in electronic transaction and nobody cared to stand against it. Nowadays at least half of all transactions in developed countries is made without cash. I could bet that when it's 100% you won't feel the difference.
July 21, 2017, 11:55:22 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
For now, NO. The lesser physical the thing is, the harder it is to control since it has no actual form. And everything that goes out of control would lead to chaos. Digital currency is already being used and is accepted widely but, its sytem still has to go through a very long process before it will becone stabilize. In this digital era, evrything is almost possible and this includes the negative side. Security and economic stability would be greatly affected.
July 21, 2017, 11:41:07 AM
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.
The Current up and down of the bitcoin / altcoins prices and that too very often is no good for the running the government as they need a stable currency to be able to run the country. However i think we should keep both fiat and bitcoin and use the best of both for the benefit of government and the people themselves.
July 21, 2017, 11:15:42 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
I feel yes stability will be maintained because for a country to phase out an existing system to adopt a completely new mechanism then series of infrastructures would have to be put in place which would include a regulatory body to match the demand with supply and in this case if we have a fully digitised currency economy, its continuous rise will mean a doom for the country if its not matched with corresponding production and that's what the country will have to ensure through regulations before adopting it.
July 21, 2017, 09:42:03 AM
If you mean digital currencies are crypto currencies then yes it will be disaster and there will be uncontrollable inflation and deflation, crypto currencies never meant to be created as main currency in a country because it is decentralized, making crypto currency as your country main currency can cause your country being controlled by whale
So true. A government wouldn't let the crypto control the faith of the nation. It will be a disaster if a country, how stable it is, would totally depended on crypto. One reason is the price volatility. How can a citizen do a budget for a family if the price continues to fluctuates everyday and can be manipulated by the rich and powerful. Those country would be at the mercy of those big entities which any government in the world would not want happened otherwise, a total collapse not only of their financial industry but the whole nation itself.
July 21, 2017, 09:30:59 AM
I am also sure that any crypto currency will never be recognized as a major. It will be the currency of the Internet. Who knows maybe it was invented by the secret services to kill the weak currency countries.
July 21, 2017, 09:29:25 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
The economy of a country will not be stable if it eliminates the cash. I think digital money is only suitable for adoption and legalized and digital money not should used as the primary currency of a country.
July 21, 2017, 09:21:30 AM
If you mean digital currencies are crypto currencies then yes it will be disaster and there will be uncontrollable inflation and deflation, crypto currencies never meant to be created as main currency in a country because it is decentralized, making crypto currency as your country main currency can cause your country being controlled by whale
July 21, 2017, 09:16:38 AM
Yes. Crypto-Currency is very volatile, the economy of that country would be unstable all the time, sometimes you would be in the Heaven and then some time later you would be in the Hell... To make the country's economy stable it's necessary a stable currency and I don't know any Crypto-Currency that corresponds to this requirement.
Very well stated and its a true fact indeed. At the moment no crypto is stable enough for an economy,and ruling cash out of the scenario is definitely a road way for the doom of that specific country. Ruling out cash out of a country would eventually lead to ruling out people of the country and with recession all over world ,making any crypto currency as their main currency will not result as expected.Cash and gold need to present in any economy ,because those 2 things are the things that matter to the world and not bitcoin.
July 21, 2017, 09:12:08 AM
I think it is completely impractical to make a currency with high volatility a national currency phasing out cash. If a country accepts any of the cryptocurrency as its national currency, the entire national economy could collapse due to currency volatility. Bitcoin will reach its ceiling of 21 million in 2140. If it is accepted as standard money, that will inevitably lead to deflation and constrain economic growth.
July 21, 2017, 08:59:01 AM
basically the cash exist to facilitate people for every transactions in this world and indeed the advantages from digital currency is people can do any transactions without bringing big wallet to save their money but digital currency doesn't not provide stable movement and volatile always be the major problem in for cryptocurrency world so i think it doesn't gonna works if government remove the cash and consider digital currency as instead of it
July 21, 2017, 05:31:33 AM
Being out of cash for a country is not an issue in todays world. What is a possible issue is two fold:
1. A lack of willingness of people to take a credit - hence creating money
2. Inflation caused by a bad credits.
3. A lack of ability to pay up the interests on the credits.
So its not a problem of lack of money, but its the problem of lack of ability to get money, wheter its a cash or not. Having the access to too easy money for economy might means problems as well. Its a balance between to easy or too hard accesible credits.
It was looooong time ago since the economy ceased to be a cash economy. Its now a credit economy with the appertheid boundaries to access the credit. Some people have too easy access and some have too hard acess to credit.
I think that its not a problem for a country economy to be 100% digital. Its a problem for people living in it though. So if people would agree with it. Whats the problem?
1. A lack of willingness of people to take a credit - hence creating money
2. Inflation caused by a bad credits.
3. A lack of ability to pay up the interests on the credits.
So its not a problem of lack of money, but its the problem of lack of ability to get money, wheter its a cash or not. Having the access to too easy money for economy might means problems as well. Its a balance between to easy or too hard accesible credits.
It was looooong time ago since the economy ceased to be a cash economy. Its now a credit economy with the appertheid boundaries to access the credit. Some people have too easy access and some have too hard acess to credit.
I think that its not a problem for a country economy to be 100% digital. Its a problem for people living in it though. So if people would agree with it. Whats the problem?
July 21, 2017, 12:27:04 AM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
If the country makes its own digital currency and develops itself properly and cautiously it might be stable because it is well managed. Unless a country adopts bitcoin (for example) and wipes out cash it will not be good, because the economy will depend entirely on the development of bitcoin, which indirectly the country will depend on others (bitcoin) because bitcoin is used by many people in world. Fluctuations will depend on the development of bitcoin rather than on the country itself. It may be different if the country makes its own digital currency, whose fluctuations depend on the country's own development. But I do not think it will be done in the near future because it takes careful consideration because it will be a big risk if one goes wrong. And now in fact the production of money is still very high, so real money is still needed. July 20, 2017, 06:36:00 PM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
A. country can not entirely phase out cash but reduce it significantly and that is what is going on with the several cashless policies put in place by the country's highest banking authority and the policy is gradually recording some level of success in which there is still stability in the economy in which I believe same thing will happen in the case of the adoption of crypto-currency because it relies majory on the cashless economic system which aligns with what government is trying to enforce. 
July 20, 2017, 06:23:08 PM
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, 09:26:03 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, 06:43:22 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, 06:14:00 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, 06:03:42 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, 03:44:48 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, 03:06:17 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, 01:47:07 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, 01:32:20 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, 01:18:23 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, 12:08:12 PM
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, 09:36:24 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, 09:26:44 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, 07:13:19 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, 07:04:33 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, 06:57:45 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, 06:43:34 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, 06:37:31 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, 06:19:59 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, 05:54:20 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, 05:53:59 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.
July 19, 2017, 05:31:27 AM
It would depend on what digital currency that is. If it's something they made (other than the cryptocurrencies we know) I don't think that would destabilize the economy. For example they can just say they're phasing out cash and you can just put your cash in the bank, then it would be sort of digital fiat where you only use your credit cards, etc.
July 18, 2017, 10:44:16 PM
Yes. Crypto-Currency is very volatile, the economy of that country would be unstable all the time, sometimes you would be in the Heaven and then some time later you would be in the Hell... To make the country's economy stable it's necessary a stable currency and I don't know any Crypto-Currency that corresponds to this requirement.
July 18, 2017, 09:40:48 PM
If a country entirely phased out cash and replaced it with digital currency would it become destabilized?
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