Topic: How long will it take banks to phase out physical cash completely? - page 10. (Read 4114 times)

I don't think it would be that long.

It is true that we are slowly depending on the technologies available in our country and before we even think about cryptocurrencies, we should be aware that there are also cards and digital wallets. Technology will flourish and transactions will do the same in that process. We don't know, Blockchain might be used at that future.

If we are practically thinking, another century would completely phase out physical money, we either along the way die of extinction from apocalypse or quantum computing is flourishing and resource management become so efficient that we became dependent on technology when it comes to finances. I specify quantum computing because I believe that by that time a centralized computer will do all the things that is needed and one example is finances.

A CBDC will prove to be a safe-haven for banks worldwide, as they'll gain more control over people's money. Privacy will be a thing of the past, as banks alongside governments, will control the centralized Blockchain ledger allowing them to do as they please. With no physical cash, every transaction performed will be entirely visible to said entities. I think this is one of the many reasons why central banks and governments have become so interested in a launching their own CBDCs. It seems that China will be at the forefront of the digital economy, as it's already massively testing its own digital version of the Chinese Yuan. Other countries might start doing the same soon, in order to avoid getting left out of the game.

Once the whole world relies on CBDCs for mainstream transactions, then the battle between the centralized and decentralized realm will begin. While I don't think decentralized cryptocurrencies like Bitcoin and Ethereum are going anywhere, they'll be challenged by CBDCs worldwide. After all, CBDCs will provide virtually the same benefits of crypto (speed and low costs) while retaining the same properties of physical cash (especially price stability). It'll be up to the people to choose from one type of currency from another. While CBDCs will increase government surveillance, people who want privacy over their transactions will rely on decentralized cryptocurrencies we all know and love today. Using Blockchain tech on a CBDC makes no sense if the same will be utterly centralized. It'll be nothing more than a "glorified database" subject to manipulation and corruption by the world's most powerful governments and central banks. Just my thoughts

The transition from Fiat to CBDC is possible not only by solving technical issues, such as Internet availability, but also by solving financial problems for the entire population. We know that there are a lot of people who will never be able to have a smartphone due to their poverty. For such people and those where the Internet is not available, the only unit of calculation will be the Fiat.

In my opinion, it depends on the attitude of the people and the way the government conducts socialization to better use digital cash. I think this still needs a long time to change the usage to digital, besides that we also have to pay attention to supporting needs if the use of digitalcash is required. This is the problem of the government in each country. Besides, there are still a number of things that need to be fixed related to the shortcomings of using digital cash.

It's a process, and we need to mention that some advanced countries started that process some time ago, and of course those countries will get rid of the cash soon. There're some announcements from Sweden, Norway, Islands, Japan, South Korea, and probably some others. But in the same time we can count that in some countries it will take time for this, they didn't start to think about it yet, to not talk when will they start working on that, third world countries, big countries without infrastructure, etc...
Just to say that digitalisation of fiat is not the same as adoption of crypto, have that in mind. Fiat system is corrupted, new name and form will not change the fact that it's a corrupted system. If we need changes we need to support crypto and tell others to do the same.

It will go away because it will cost more and more to produce it and make it difficult to counterfeit. Right now many coins all over the world cost more to produce than the valye they hold.

The governments will push to switch to digital payments like phone wallets and cards first to remove small bills and then finally the big ones. You'll see I was right when they cease production of the smallest coins and bills in your country to decrease the amount in circulation and discourage people from using them.

59 percent of global population has access to internet and according to this website we achieved this percentage in 25 years.
Here you can see the chart:


Numbers down below are up to 80 because there was a mixture of early and monthly statistics.

Btw seems there is a significant steady rise in number of internet users but still I think it will take decades to move population into cashless society, personally I don't like this fact cause it will be super easy to manipulate everything as you wish online. And after that, there will be no need of ATMs, right? Idk, that may happen or may not in near future, very hard to predict.

I remember those times, people were very afraid to make any purchases online but that was because there was not really any way to do this securely as you needed to give your credit card information and that is always a risk, but then platforms like PayPal appeared and helped to make online commerce more common, however even if I believe you are right on your prediction I do not really think cash is ever going to disappear completely as poor people simply do not have the necessary access to technology to make that a reality.

Many people are not gonna buy those new changes since many people cannot adopt the new technology and also cannot trust the digital system since hacking is so rampant. So I think this digital things will not happen nor have little possibilities since I'm sure billionaire want to see their money piling up on their house nor in banks.

But I'm open with this changes let see how this discussion go far if the thoughts will became reality.

For sure it would really take a very long time for the phasing out of physical money to take place. Also there would be a lot of arguments and consultations to be done before coming up into such decision because there are lots of people around the world who would still prefer using fiat or paper money more than digital ones like cryptocurrencies. Just like in the cases in the third world countries wherein they have difficulty on adapting into the latest technology because of the economic status and cultural as well as traditional belief stored on people's minds that makes it an additional difficulty to implement such thing of phasing out paper money just to put it into a digital manner.

Humanity are known to adapt into changes but it would really take long to execute the idea of phasing out physical money for it would still take concern of the citizen's opinion regarding the matter if it would fit their daily life situation and if it would suit to adapt on the tradition they have on using paper money. If the government and people would jive into the same decision and if it would benefit both parties wherein no one would be left behind, then possibly that is the time when banks can totally phase out usage of physical money and turn it into digital ones. Although it could be possible to happen, it would really take time for people to accept and adapt on the new system of currency.

What exactly is your main reason that made you think that the banks has to phase out cash?
If Covid-19 is your reason, I don’t think that’s enough. Cash will always be there, whether you like it or not, and no one is forcing you to make use of it, it’s just your choice.

There are so many payment methods out there that people can use, it’s just your choice to choose what works for you. There is PayPal, and there are so many people who make use of it, we have Bitcoin and you can as well use it if that’s what you choose. It’s always your choice.

I think this is not so easy to change physical cash to digital completely within short period of time. Yes we can say people now realize deeply for digital currency in this pandemic situation but where maximum country still not accepted digital currency there change within short time is impossible. On the other hand banks now made many ways to send and receive money without physical existence and in this period people are made more adaptions with this. So finally i will say it needs more experiment and more time  banks to phase out physical cash completely.

thanks.

Indeed. Even a lot of people are now using online or virtual payment when they buy in groceries and online stores, they still prefer to use physical cash as a payment method because no technology is perfect when it comes to security, so online wallets are not completely safe and secure. It is the reason why most crypto users recommend to use a hardware wallet to avoid getting hacked. It is also difficult for the government and other people to decide which is better physical money or virtual money, and there are still people who can't afford to get their device to use virtual money as a payment.

There are still people who prefer to use the traditional payment - cash. Not all people accept change, they are more than happy to live in the traditional way. Not because they can't afford but it's their way of life ever since. So I'm not seeing that physical cash will be abolished completely.

Online transactions are completed very quickly but now in many places they have lagged behind in terms of technology No idea about the internet This is why it will take a long time for governments to transact with physical cash even after fully adopting CBDCs, as the government will first have to try to improve the underdeveloped countries with the advancement of technology. The virus has caused a financial crisis that has led many to give up using physical money.

internet is cheaper now 10 times  compare to what they are before  . gadgets to browse the internet are also cheaper , now we dont need the actual pc or laptop but we can use our phones  . its also not the job of the community to buy satelites for signals but its the job of the government to put that  . i dont think its not possible for all to convert to digital payments  but maybe its not the right time yet   .  i guess governments are still on the process to that idea because i think its not easy to just decide that we will permanently leave using physical money

IMO, this kind of change is not something that can take place quickly and instantly. This is like evolution, it takes quite a long time and adjustments to achieve ideal conditions. We know that the conditions of each human resource are different, some have used and followed technological developments, and some are still lagging behind and using conventional systems. So, this requires adjustments and a gradual process.

Supporting facilities and infrastructure are also very necessary. In some lagging regions, the internet network and other services have not been maximized. In the future, cash transactions will still be the first choice and online transactions are the best alternative. I am sure, one day when facilities and infrastructures and human resources are ready, online transactions will be the first choice.

Keep in mind internet adoption didn't reach everywhere yet, as its implementation is still too expensive in some places, consequently local communities don't have enough resources to pay for the installation (anthem) or to pay for a satellite internet monthly subscription.
And without internet, virtual transactions aren't possible, even if people were seeking for this. I think it is the main challenge to overcome physical transactions and to adopt a fully digital system, but I expect satellite internet investments are going to increase soon as it's the most practical source of signal as far as I know, what will make the service cheaper, covering the whole world with signal. When this happens we will be ready to phase out physical cash completely. Older people will have to adapt to it as they did before towards vehicles, electricity, television and more...

The Central bank digital currency was actually introduced to the government by IMF boss last year if i remember correctly and the last time i checked only few governments supported the idea and it not even possible for all the government that support the idea to implement digital currency at the same time. Besides, none of them talk about it until the pandemic issue happened.
@OP, fiat currency can not totally eradicate cause we need both fiat and digital currency to make things better.