Topic: How long will it take banks to phase out physical cash completely? - page 2. (Read 4114 times)

I am ready to say that in 2050 there will be no cash in circulation as we are now accustomed to it
And it seems to me that 10 years is not enough, because there are very underdeveloped countries, they will take longer to make the transition

It is necessary to clearly separate the concepts of "transition to digital money" and "full transition to digital money". It is safe to say that in some countries, the transition to digital money has mostly already occurred, and some countries with a small population may even announce a full transition to digital money. The world is heterogeneous, so a complete transition to digital money in the near future does not make any sense. Poor countries may not have enough resources to do so, and large countries cannot afford to do so because of their size and infrastructure security.

I personally doubt that the transition to a digital cash will happen anytime soon as there are lots of factors to be considered.

Due to the disparity among developed, developing, and underdeveloped countries, the latter two suffers from technological deficiencies and innovation as each country has their own set of priorities. In addition, the shift to a digital cash system implies that the platform used would be secure and tamper-proof in order to avoid loss of cash. Lastly, the presence of physical cash has been in existence since time immemorial.

The barter system of transaction slowly transformed to using coins which represent cash in the society. Despite the convenience of having digital cash to purchase goods, a shift to this kind of system will leave other countries behind.

You are partially mistaken, and rely on an erroneous concept. Let me explain - fiat does not allow full control of the population. But, for example, the digital card system allows you to do this much better. All your transactions become transparent, available for control and monitoring. At every step - whether you buy a condom in a vending machine or a car in the salon - transactions linked to your account are archived and can be picked up for verification at any time. Moreover, the check can be any - from identifying your location to monitoring the balance of your income / expenses. Therefore, the transition to blockchain and the departure from fiat, just increases the level of control by the state, which is why the state is more interested in the transition to digital technologies.
Yes, the only thing I will clarify is that the blockchain in the implementation of the state will be the same centralized system, with the advantages of blockchain technologies.

Exactly. Crypto will never replace Fiat because of its decentralized nature. Governments will want something they can control in order to manipulate the public. This is better achieved with Fiat than anything else. As long as governments continue to rely on central banks for the issuance of new currency, Fiat won't be going anywhere. As far as physical cash goes, I believe it'll be here to stay for a very long time. The world is not ready yet for complete digitalization. There are areas where there's no Internet access, limiting banks' ability to circulate CBDCs to the public. If banks seriously want to phase out physical cash, governments are going to need to provide Internet access for all. In third-world countries where most people are poor, this becomes quite a challenging task. The main issue would be making old people use CBDCs on top of physical cash. They won't change their ways even if technology promises to improve their lives for the better.

Nonetheless, phasing physical cash is time-consuming but not impossible. Slowly but surely, CBDCs will be introduced until they completely replace physical cash. In other words, CBDCs will co-exist with physical cash for quite some time. Crypto will still be relevant since people will use it as an alternative to Fiat. Its main selling points will be decentralization and censorship resistance. With how big crypto has become, it seems to me that it'll co-exist alongside CBDCs for many generations. Phasing out physical cash will truly depend on how fast people adopt digital payments in the mainstream world. Just my opinion

Digital currency should not serve as an alternative to fiat currency at all, and in the case of issuance by the central bank of the state, the digital currency simply becomes a form of fiat currency. States can experiment as much as they want with bitcoin and other similar alternative currencies, but the main bet will always be on their own digital currency. As for the rejection of cash in the near future, it seems that such things can happen in small states, but in large countries, the cash currency will be preserved in the near future.

The traction will be extremely slow especially in developing and underdeveloped countries. I still think the world is still far from phasing out paper money because the internet isn't readily available in some parts of the world especially in African countries and some underdeveloped western part of the the world.
Bitcoin is helping some people to exchange value across different borders, so we will stick with it for now. Banks will leave for a while.

Exactly. We're still too early to tell, as the vast majority of people are unaware of crypto and Blockchain technology. Besides, not everyone has internet access. In third-world countries, it'll be quite challenging to establish a digital currency system due to the lack of an internet connection. Unless governments decide to provide free Internet for all, I don't see the possibility of banks phasing out physical cash becoming a reality anytime soon. Maybe decades from now, we'll be able to see a radical transformation of the world's economy.

In the meantime, we can enjoy using physical cash for day-to-day payments. The anonymous nature and widespread acceptance of physical cash is what has kept it extremely popular in the mainstream world. The introduction of CBDCs will destroy privacy as we speak, as governments and central banks gain full control over people's finances. Decentralized cryptocurrencies will benefit the most, as people make use of them for privacy-centric transactions. My guess is that governments will shut down Fiat on/off ramps, in order to undermine crypto's prominence in the mainstream world. If that happens, the public will have a hard time trying to get access to crypto. It'll still be possible to acquire crypto by other means. But most people will avoid it after it's declared "illegal" by mainstream governments. Time will tell us the fate of crypto as CBDCs come into play. Just my thoughts

Are you sure? Even government create their own digital currency, it will not guaranty that it will replace the fiat money. Fiat monetary system is exist long time ago and I think it will continue to exist whether there is a digital currency because digital currency is just an alternative to fiat. Many people still doesn't know how to use digital currency and government also doesn't want to accept and legalize digital currency specially bitcoin because of decentralization.

I don't think that will happen soon since there are still countries that are not recognizing cryptocurrency and they are banning the use of crypto. And also the information about cryptocurrency is not yet known by all people. That can happen if we really adopt cryprocurrency as our method of payment. If all companies will allow the crypto as payment and the technology that involves cryptocurrency will innovate.

Sweden is currently looking at the possibility of moving to a digital currency (announced just recently) with an analysis they expect to be ready by November 2022.  Their central bank already runs a pilot program to introduce an electronic krona based on blockchain.  I don't think it would be too hard to implement these days.  The vast majority of money in the US is already digital.  Far more digital fiat exists than physical at this point, so in some regards we've been moving to a digital currency for decades already, ever since electronic payments started.

https://www.bloomberg.com/news/articles/2020-12-11/sweden-explores-the-feasibility-of-moving-to-a-digital-currency

This issue is independent of the banking system.  It depends more on the state of economic development of the state, the level of well-being of citizens, the percentage of urban and rural residents and a host of other factors.  Wealthy states can try to forgo cash.  However, most states are unlikely to succeed.  There are categories of citizens who categorically will not agree to refuse cash or, for various reasons, will not be able to refuse it.

Good point. Considering the slow adoption of technology among the elderly, it'll take a very long time to phase out physical cash in its entirety. My guess is that banks will slowly introduce CBDCs alongside physical cash in order to spur their adoption in the mainstream world. Once people are accustomed in making digital payments with CBDCs, physical cash will become a thing of the past. Young generations quickly adapt to the latest trends in technology than older ones. The time to distribute CBDCs will largely depend on how long it'll take physical cash to see its demise in the mainstream economy. If it takes decades from now, you and I won't be able to see the day where the world's economy becomes completely digitized. At least, we'll be able to enjoy paying with physical cash during our lifetimes.

Nonetheless, time will tell us what lies ahead with the transformation of the mainstream economy. With COVID-19 accelerating the adoption of digital payments, a full-fledged economy powered by CBDCs is just a "mile" away. Everything will depend on how quickly people adopt digital payments on top of physical cash. Governments and central banks would want to accelerate this process as much as possible in order to increase their surveillance efforts. Digital money directly controlled by the government would make wonders in controlling societies that were never thought possible before. It'll be the end of privacy as we speak. Luckily, crypto is here to save the day as it proves to be a censorship-resistant alternative to the current monetary system. Just my thoughts

I don’t think it will happen anytime soon. Physical cash may be a hassle for some of you here, but we must always put in mind the cons of phasing it out especially to the elderlies. I know innovation and technology has been improving and dynamically changing over time making our lives easier and convenient. However, we should also think of the older generations and consider their welfare before jumping to newer and higher technologies.

As you know, the goal of going digital is for the betterment of each one of us. It is indeed easier to make transactions online. You can buy whatever you need in a snap. You can order food and even pay bills online. These features are such a blessing considering that most people have cellphones and internet. But let’s admit that not everyone is as knowledgeable as us. There are still a lot of people who aren’t tech-y and there are still a lot of people who can’t afford such privileges. We don’t want them to be left out just because we strive for a better future, do we?

Innovation and technology can do greater things, but let us not forget the groups that can’t catch up that much to what we have to offer now. We must meet halfway. That’s why I think it’s better to retain physical cash together with digital wallets. Let digital wallets and electronic money be an alternative instead of pushing it to replace the actual money.

These widespread speeds up a few forms of advanced transformation and I think we are getting closer to cashless society. But to my supposition isn't not up to banks but up to individuals, their clients. We still have or maybe tall request for cash, especially among more seasoned populace and in immature nations. The financial institutions monitoring all portfolios and they can't deny clients from something they need.

Nowadays most people use electronic money instead of banknotes, so the process of eliminating cash has already started. Developing and launching CBDCs will take up to 5 years. It will take above 10 years to become finally cashless.

Obviously none of the governments are going to adopt a decentralized cryptocurrency. At the most, they will adopt a central bank issued cryptocurrency (such as digital Yuan of China), which is centralized. If the governments adopts a decentralized currency, then it will be akin to giving away the control of financial system to the people. It will be good news for the citizens, but not for the authorities.

I agree with two or three decades or the government can opt to create their own, I don't think they will adopt existing coin, they will prepare to adopt their own which they can regulate and fully control but awareness is the first key, the whole world should have a full awareness of how Cryptocurrency works before they support.

Hmm, I guess .1% or lower of world's total population is too small. I mean we now got more adoptions through the years that passed. Many people heard the about this new tech and tried it by themselves.Based on this website, it tells us that the total number of blockchain wallet existing as of Dec 3,2020 is 60,632,596. Yeah! I know that maybe some of them got foh le accounts and some of them aren't active anymore for certain reasons but the point is they still knew about it. As of 2019, we are already 7.7 billion in this planet which means that people who knew bitcoin alone are .007% not yet including the alt users, the family of that users who are a little bit aware what is crypto all about, the curious ones and even the random people walking on the street and see posters/signs about crypto.

My point is that we are now more than .1%. That's what I believe at least .

By the rate of our progress, I think this will happen but in late-late future as cryptocurrency is not that known, and if you would take the percentage of people knowing crypto, it would just likely range to >0.1% of the entire population. Yes, people talk about crypto in this forum but this number of people is very small compare to the whole average number of person living in this planet currently.