Topic: How long will it take banks to phase out physical cash completely? - page 12. (Read 4114 times)

I think they are currently doing it as much as they can, they do not want to give out physical cash at all, they want to keep all those physical cash in their bank vaults so that they wouldn't have to deal with regulations that forces them to have certain amount of cash at all times if they want to invest or loan out certain amount and that is not even 1 to 1 ratio so they just have to keep their own ratio to a realistic level where they won't be bankrupted if too many people withdraw at the same time.

This means banks are doing everything in their power to make you pay with credit cards and debit cards and even wiring money to each other, as long as you do not end up paying with cash in any place. Of course it will never be 100% but I think it is getting quite common.

In my opinion physical cash cannot be replaced or lose value because it symbolizes or represents it's own country, maybe we can limit our use to it also due to the threat of covid-19. Maybe this will be possible in rich countries but not in other countries that are lagging behind and there are still many people do not have access to the internet.

I believe physical currency will become obsolete overtime.  As technology advance so is the payment system.  It may take more than a decade but eventually physical cash will be completely abandoned just like the barter system.  As Heraclitus say... "The only constant in life is change".

I'm not sure I agree with this premise altogether.  The outbreak has affected a lot of things in our daily lives, but I still see people paying for things with cash (and I do as well).  Granted, even before COVID-19 people had started to shift toward digital payments, but I'm not aware of an increase since March or so.

I have seen signs in stores asking customers to pay with their phones or credit/debit cards, but as far as I know there haven't been any businesses near me that actually require it.  And then there's the coin shortage in the US, which is kind of unusual IMO.  But in any case, I seriously doubt we're going to see cash get phased out anytime soon--probably not in our lifetime, but even though I say that I don't have complete confidence in my statement.  The use of cash is, in fact, dying and that's because it's so much easier to pay with plastic or a phone. 

There's always going to be a need for physical money, however.  You have to realize that if we ever had a grid-down scenario or some other catastrophe that made it impossible to process payments electronically, there would obviously still be a need to pay for things.  I'm hoping the banks, governments, and everyone who ever buys or sells things realizes this and doesn't allow a completely cashless society to happen.

I don't think this is going to happen, there will always some region that cannot transact using digitalcash, because htere will some region of this planet that does not have an internet connection and there are remote places that do not have electricity and internet, fiat will always exist because we still have some minority people to consider from far flung areas.

They could use the digital/virtual ones if they want, as long as they don't make owning cash (physical currency) illegal.
I can image different ways people can turn their online currencies/tokens into physical ones. The right to do so should not be denied or taken away from people. There are advantages of physical ones

It may take a few years if we look back on how people trade or what people had used as a medium of exchange centuries ago, people adapt to what is more convenient. A cashless society is not far from reality but it will take time. People should be knowledgeable and it should be adopted by the mass before it can happen. There will be a lot of changes that need to take place first, whether if the government is willing to embrace this change in terms of medium of exchange.

What kind of timeline did you expect? It was only a few months ago that several European countries and the ECB announced working on CBDCs.

Deutsche Bank analysts projected a couple months ago that it would take ~3 years before we would see them circulating: https://www.spglobal.com/marketintelligence/en/news-insights/latest-news-headlines/from-hygiene-to-aid-covid-19-strengthens-case-for-central-bank-digital-money-58321056

As of May:

Where did you see them talking about CBDC? Because I can’t see anyone that’s still talking about that now.
And countries I know that took the step to create their own CBDC, no one is talking about those, not to talk of making use of it.

As much as I know, they are all dead. I was looking forward to the Chinese releasing their own digital Yuan so I would see how it turns out to be, but no one is still talking about the digital Yuan since this Coronavirus came on-board . As for contactless payment methods, there are so many of them: PayPal, Payoneer, Cashapp, etc. And you can also use Bitcoin where it’s possible.

As long as there is poverty in the world and people do not have smart devices and access to education , it would really be a problem when it comes to completely phasing out the Cash. Plus the system needs to be clean 100% , free of corruption and at the same time we need to understand that we cannot really expect the internet to come everywhere there are places in the world without mobile services , we won't be able to find a solution to that problem.
Unfortunately we cannot expect the old generation to know everything needed to use online banking , transactions, cryptocurrencies , it's really hard for them to adjust. Therefore as long as we remain neutral for everyone , we cannot completely take this step .
There are countries where people are provided with special privileges if they use online banking to make their transfections and there are companies even offering them discounts which actually makes the consumers more bent towards the online payments.

That would definitely be a double pandemic for the people of a particular region battling with Covid-19 and Poverty. Let's take illiterates consumer for a example, they don't have bank accounts to carry out daily livelihood technical transactions. Buying foods and beverages from vendors would be hell on earth. To fitch out physical currencies at least people in the rural areas needed to be educated to a very standard stage

I am waiting for Bitcoin to come in and get the cashless policy established. Better still let a country start first, maybe the China or USA, from there, other countries will pick up.sincerely, the idea of cashless would have been of high advantage is a time this when COVID 19 is raging and transmissible through money exchange,it will really take time and can better achieved if we can make everyone computer literate.

Such a thing will never happen in the US. Too many people will be against it. Look at the anger of many people because the "government" is forcing them to wear face masks. They believe that they're trying to take away their freedoms. They will look at a move such as facing cash out in a similar light.

Even if we are heading into a cashless society especially that it is needed most in this pandemic time, i cannot give a definite time when will this physical cash will be phase out. Majority of the people are still into physical cash transactions day by day and turning this into a cashless one might give hard time for all those regular people who are only used to this. Cashless transactions might be adopted in some countries but i don't think this physical cash transactions will definitely vanish.

What do CBDC's have to do with this transition?

Regardless, if some government decides to get rid of cash money completely, people will start to use a foreign currency instead. If all currencies across the globe turn into cashless fiat, people will start to use something else. All in all, it looks like you are putting the cart before the horse, i.e. cash is going to die only when people no longer need it en masse. Until then, any government trying this out will only hurt itself

Bitcoin is digital cash. Bitcoin is the grantee that cash will never die. Very soon people will realise how important cash and digital cash are.

Physical cash won't be replaced no matter how fast technology is growing.
1. Physical cash/currency is the symbol of a country
2. It is used for day to day transactions that mostly doesn't require technical support and help.

I would have listed a lot of other factors to put into consideration but those are the basic ones,

Banks won't really stop using physical cash, nor normal people will do. I'm saying this because banks are possibly running their business over physical cash only while many high-end people and even authorities are involved in having their money being kept black (black money I'm talking about) and if physical cash goes extinct, I believe many big dogs will commit suicide the exact same day or die due to such a heart-attack giving news. I don't think that banks will ever decide to go digital fully without that piece of paper being involved.

Agreed, even if cash has lost its prominence against electronic means of payments during the last decades it is inevitable that at least a part of the transactions around the world are performed using cash, also we must not forget that cash is truly anonymous and can be used to buy stuff that you do not want to be reflected on your credit card balance, people know this and as such they are going to keep using cash even if governments would like for cash to disappear completely.

I doubt if the government will eliminate physical cash completely, right now all countries are in a special condition, namely the existence
of a pandemic. So the government advised residents to reduce the use of physical cash, to prevent the spread of the corona virus. But in this
case the government does not ban the use of physical cash. So there's no way the bank will eliminate physical cash, and anyway this pandemic
it won't last as long, because I'm sure a few more months the vaccine will be found and the corona virus can end. Then use physical cash will
occur as usual again.