Topic: How long will it take banks to phase out physical cash completely? - page 5. (Read 4114 times)

For me it will still take some decades to go cashless. There are still some people now who prefer the traditional way and can't understand how to pay without using fiat, in other words they must be born in a year where technology is not that progressive yet. But current generations now understand the process of it, how to scan QR, how to topup credits for their mobile wallets, etc.

Agree. It's going to take quite some time before banks will be able to eliminate physical cash from the face of the Earth. Old people are reluctant to change, making it quite challenging for central banks to implement CBDCs at a large scale. New generations will easily adopt digital currencies, making it easier for governments to roll out the new monetary system. Even after the implementation of CBDCs worldwide, physical cash will still be in use for day-to-day transactions. A full-fledged cashless society is going to take decades before it becomes a reality.

In the bright side, we'd get to enjoy all of the benefits of physical cash while it lasts. Once CBDCs replace physical cash, the average person will lose privacy over his/her transactions. That's largely because governments and central banks will control the underlying blockchain network of their newly-implemented digital currency. Surveillance over people's financial activities will improve with CBDCs worldwide. While decentralized cryptocurrencies will be an option to preserve privacy, they won't have the same level of adoption as a CBDC. Like it or not, it's the way everything is heading to. And there may be nothing we can do to stop it. Just my thoughts

I don't think it will be sooner even if there are many people who adopt virtual currency but still there are places that still not in it. So, it will take many years before fiat money will be phased out.

Same thing in my mind, you can't just dismiss that some people will still hold transactions through physical cash, because this is much real, and have that physical touch we need for satisfaction. Also, even though we go through a phase of cashless payment, banks will not just phase out cash, cause it still had values in it that can be used for proper trading. If they put the value of cash to complete 0, there would be a mess around the world, as some people will be scared of the ability to trade for their goods, just because of this cashless payment.

I don’t believe 5 to 10 years won’t be enough for banks to phase out physical cash completely. Maybe more decades to come. If I’m gonna reach centennial year (if I did lol), I bet that physical cash is still going to be there rather than being phased out completely. Just my opinion.

Aside from that, fundamentally, it's only now that it may just happen where most don't allow physical cash to avoid spreading the deadly virus. Anyway, I'm just thinking about the right way because its impossible to phasing out the traditional money so that, the big question is that how about those elder people which is there is no knowledge of the digital process, I think if this implementation is approving by the development bank authority there may be having a little negative effect to people most especially to the poor.

There are illiterate people in the world who don't know what Bitcoin is, who don't know how to make transfer using digital tools, they don't know the purchasing power of digital currencies. As far as the world is still facing these challenges it would be a long time for physical currencies to be eliminated completely. I don't think it would happen perhaps all the payment gateways decides to accept bitcoin for different type of transactions it will minimise the way physical currencies are been moved about.

Physical currencies serve as a symbol of a nation.
It wouldn't be wise eliminating it for any reason imo.

Maybe in the future, who knows. But, I can really feel its impossible to happen. Banks will never phase out cash, and it will lasts forever with us. No matter how popular and beneficial this Bitcoins to us, we can't deny that cash is highly important and we still use cash in any time and situations in life. Cash will never be replace nor vanish in our mainstream world despite the highest digital technology around us.

I think it will take 5-10 years. By the end of the next year some countries will introduce pilot version. A couple of years will be needed to eliminate cash.

you cant really expect that every store or shop will adopt the cashless system. there will be merchants that will stick to fiat esp those small shops. even consumers will keep to patronize fiat payment system. for most, it is for convenience purposes.
maybe there will be areas that can be a cashless society but this is not true for the large part of the world.
we cant deny the fact that there are pros of being cashless, and one advantage is reduce the transmittal of disease like covid, the recent virus that struck humanity. this is why a lot of businesses are now trying to go cashless.

we can read more of pros & cons of being cashless society here -
https://en.wikipedia.org/wiki/Cashless_society

however, totally phasing out physical cash? i dont think so. not for the next 10 years. maybe only few areas can adopt this cashless system.

Some were still not into adoption of cashless system as they don't want to accept changed or fears that it may cause stuck of their money or fear of sending it in wrong addresses or bank accounts. I still see many stores whom are not open to accept mobile transactions even they have near stores who accept mobile banking payment or any mobile payment transactions they will put signed in their store that Cash Only even during this Pandemic. Soon maybe once there is no other option but to adopt it's the only time that it will be used but as long as it's still allowed many will still choose to use and so what they grow up with.

Agree, cashless payments right now are in trend and many people are using especially right now which is pandemic. The problem is, those in the countryside or places that don't have a good connection to the internet. It will take a lot of years before banks phase out the physical cash completely because we also need to develop our technology. Right now, the online banking system is commonly used by many people including me and it's essential since we can pay through cards now but like what I've said, not all are capable of doing that.

Yes Sir. For me it will still take decades before that to happen. We should remember that physical money or FIAT is already there when the market was created thousands of years ago. Started from barter system and continually develop as coins created by their government or King before as part of control and authority. And up to know, still physical money either paper money or coins are still in use today.

Still you need to consider a lot of factors before deploying fully cashless society though we can't deny, it is used by a lot of people too anywhere around the world. Anyone is entitled to use physical cash or even the digital way.

One thing that I am thinking in the future is that how are they going to more produce money that they have done today especially for US that had a negative effect on their economy and value of their money. Will the FED just gonna do that so easily? If they employ blockchain as a medium of cashless society or any ways, they can't do anymore negative things that they want.

Also, will there be a centralized currency for everyone around the globe if digital society happens? Still it is very interesting what might happen in the future. What I hope is that these things will be beneficial for us.

That's certainly true, mate. As we enter the digital era, the need for physical cash will be greatly reduced among people in the mainstream world. The old monetary system will become history (physical cash) while the new system will take the world by storm in the not-so-distant future. This process will take a lot longer than we've imagined, since not everyone is quite fond with the likes of using digital cash for mainstream transactions. The elderly are the ones that are usually tied to physical cash as they prefer to deal with something that's tangible than all the other way around. Young people will truly embrace digital currencies as they easily adapt to the latest technologies. With the upcoming launch of CBDCs worldwide, physical cash will live alongside the "new monetary system" for a certain period of time. After CBDCs are fully adopted by people in the mainstream world, physical cash will eventually be phased out by central banks worldwide. It's a long process which could take decades to a century. At least, we won't have to worry about digital cash replacing physical cash in our lifetimes.

Nonetheless, the process of phasing out physical cash will truly depend on people themselves. The faster people abandon physical cash in exchange for digital payments, the faster the launch of a CBDC will be. No matter how long it takes for central banks to abandon physical cash in exchange for CBDCs, crypto and Blockchain tech will be here to stay. Just my thoughts

Actually, if you look at the current trend of popularization of cashless payments, which are encouraged not only by banks, but also by the government, there are still not so many places where you can use exclusively cash, and as a rule, this is the periphery and the countryside. I believe that soon paper money will go out of use and all funds will be on users' bank cards, which can be used through terminals or via the Internet. The government will never miss the opportunity to fully control the income and expenses of its citizens.

Why give up physical cash altogether when it is useful and instant liquid.
I have heard about the European Union bringing cryptocurrencies to payments in European Union countries. During the pandemic, cryptocurrencies like bitcoin and altcoins were used more frequently than cash. They will continue to use cash in parallel with cryptocurrencies in the future.
I realize that in the future, the parallel use of these two currencies will be certain and irreplaceable.
Traditional cash is used by everyone regularly, and in convenience stores and mobile stores, cash is even more useful when it comes to providing street performers or the homeless.
Cash is ingrained in how people use it and can't get rid of it.
The cash removal will take more than 100 years, and probably the majority of banks will no longer exist.

For what I know, nothing is perfect. Digital currencies have their flaws the same way physical cash does. It'll be up to central banks and mainstream governments to mitigate or reduce issues as much as possible. I believe that banks will find alternative ways for people to interact with CBDCs even if there's no Internet access at all. Satellites, mesh networks, and other means can be used to send/receive digital currencies without the need for an Internet connection. My guess is that central banks will use these methods in order to keep their blockchain networks up and running during outages or natural disasters.

Nonetheless, implementing a digital cash system backed by the government is not an easy task. Physical cash's demise will take longer than we've expected. The new digital cash system (CBDC) could transform the world's economy in a few decades from now. At least we won't have to worry about physical cash being replaced during our lifetimes. Just my thoughts

Getting rid of physical cash is not feasible because they are convenient and effective immediately. Imagine when a mobile device loses its internet connection or runs out of battery, we cannot use our money. People who don't own a mobile device are even more terrible, cash is more practical. We don't need to do anything but take them out of our wallet and use them immediately.

For what I know, phasing out physical cash does not happen overnight. It's a process that could take a couple of years to decades before the whole world begins to transact only with digital currencies. This should give most people some time to adapt themselves to the latest trends in technology. For instance, old people still use and trust physical cash for all of their daily transactions. They're still skeptical about digital payments (either through credit/debit cards or cryptocurrencies), even if the new system provides them a lots of benefits in the long run. The old generation will pass out, paving the way for the new generation to take over the world. This new generation will be already fond of technology, so they'll quickly adopt digital currencies for their own benefit.

For banks to be able to successfully phase out physical cash and launch CBDCs of their own, they'd need to develop their own blockchain network and put it to the test. The last part is important in order to make the system secure and resilient as possible against many undesired situations. Even after CBDCs are rolled out to the general public, it won't completely replace physical cash. Both will co-exist for some time until everyone becomes accustomed to the new monetary system. At least, we'll be able to enjoy physical cash for a long, long time. Just my opinion

It will happen, but we don't know when.

It is true that there are a lot of countries that are behind in terms of technology but they are also going forward. Before we even talk about digital currencies there might be the mobile wallets or mobile payment systems that would revolutionize. I don't know if the government or the people as a whole would accept Bitcoin and cryptocurrencies as a fiat since I am just seeing them as an alternative in the process.