Topic: How long will it take banks to phase out physical cash completely? - page 7. (Read 4133 times)

Well, by the way, Yes lol. These are quite obvious requirements - if we are talking directly about the whole world as a single structure.
On the other hand, in some countries, it is already quite possible to start giving up cash even today - only the elderly will suffer (you can leave cash for them). Decide for example that if you are less than 65 years old then please hand over all cash and that you will not be accepted non cash payments.
Quite strict measures but on the other hand it may well work

in my opinion it will take very longgg time or nearly impossible cause there's lot of development country or the old people like your post in bitcoin discussion that barely don't know about e-money


and totall agree with these 

It will take some time probably if it will going to happen but for me fiat or the physical money should not be eradicated. It is good tha people could have a choice whether to use the physical money or not. The good thing of having the digital money is the ease of doing transactions while in physical money the ease of doing small business where still not accepting digital money and still uses the physical money. If all will be digital then there could be a lot of issues we will going to face and that includes the dependency of digital to which it will require network cnnection for onlinr transactions. Costly too because operations, maintenance of the equipment to be used will be added to the consumers.

Even the current generation will still use cash as a payment method because not all are capable of having a device for implementing a cashless society in the future. For me, the use of cash in the future is still essential because we can't rely on online transactions too much and we should prefer those payments that are being used for decades.

There's a lot of mobile wallets that occur on many platforms but I guess its true purpose is for online transactions only, so those people who are constantly having transactions in online thought that it cashless society is a good thing.

I believe that the only obstacle to the complete rejection of the banking system from paper money is the demand for paper bills in society. One way or another, the banking system has all the technical capabilities to fully and without problems provide non-cash services to customers.

Certainly it'll take decades if not years before banks can completely eradicate physical cash to adopt digital money.
This may be faster in some countries than others but still, it will take a long time.
Consider Africa, this is a place where a large percentage of the population are illiterate. These are people who cannot read or write people who can't operate a smartphone or a computer. How then is it possible for these people to adopt digital cash? These are people who trust only what is right in front of them
I'd say eventually we'll get there but it is not possible in the nearest future for every single person in the world to adopt digital cash

I agree, there are still plenty of generations out there who love to use cash. My grandparents always used cash. Using electronic payments is just in there nature. For young people today it's common to only pay by card. I would assume that until the z generation is in retirement we will see companies and stores accepting cash. In my country its still mandatory for business to accept small denomination coins.

And also tradition is difficult to let go. Internet really makes it difficult for all to use and the older people are part of the society. Maybe in the long time to come but most of us won't be around at the time if it happens.

Part of me feels like we're overthinking this and that it's not really going to look much different than the present infrastructure, but simply minus the physical cash.  These people aren't natural born innovators.  I'm pretty sure they'll spend a few years researching, but then they'll stick with exactly what they've got now and just start removing notes and coins from circulation.  Ardent cash users aside, most people have already made the switch to digital money.  So why would they build something radically new from scratch?

I think the phase out of physical cash are not going to happen because a lot of people not know how to use cashless transaction and they still prefer the traditional way and beside some of the other places has no access of internet and there are still many people don't have a smart phone. But as time goes by using digital transaction will adopt little by little.

That depends. If governments want security/reliability above anything else, they can use existent centralized blockchains like XRP or IOTA. But since CBDCs will be utterly centralized, a traditional database might be able to serve their purpose well. After all, Blockchain is all about decentralization eliminating the middleman from the process. If the ledger is centralized, it cannot be considered a Blockchain. Due to CBDC's centralized model, they'll enjoy of greater performance and efficiency than traditional cryptocurrencies such as Bitcoin or Ethereum. Banks will win in the long run, dominating the world's economy as they've always done. I believe that the process of launching CBDCs to the public will be much quicker than we've expected.

As far as I know, developing a network from scratch with specifications for the CBDCs is not an easy task. This may take quite a long time to materialize as developers need to thoroughly test the new digital currency before it's launched by the central bank. If governments and central banks are beginning to plan how CBDCs will work and how will they behave in the mainstream world, then it'll be decades from now before physical cash will be phased completely from circulation. For what I know, it takes time for people to become accustomed to a new monetary system. The elderly will have a hard time switching from physical to digital cash. It's hoped that young people adopt digital payments for the full transformation of the world's economy to materialize sometime in the future. Just my thoughts

Until and unless there is free 24/7 internet in every corner of the world the physical cash cannot be phased out. Also the literacy and at least mobile phone for the people is needed to do so.

But what is the driving force?

That is, are they intentionally limiting cash turnover or are they doing that for some practical reasons which have nothing to do with phasing out cash? As far as I remember, you always had to pay some fee after reaching a certain limit of money withdrawn. Rates are different across different banks, but that was always the case. I've been using payment cards for like 15 years, and all this time withdrawing cash has been a pain in the ass (above certain amount)


I'm using cards myself for the simple reason they are more convenient. But I always have cash in my pocket, to be on the safe side if something is out of whack at the cashier's

Are we absolutely certain any CBDCs will involve blockchains?  In a centralised currency, blockchains have notably few real benefits over simply using an ordinary database.

I'm sure while they're in the current research stage, while different countries are still looking into what's possible, I've no doubt they'll consider blockchains, but may conclude they're not the most efficient option.

Phasing out physical cash may be quicker than I've expected. However, developing a CBDC alongside its own Blockchain network will take a couple of years before it's finished. I'd say the whole process of developing a CBDC and phasing out physical cash from existence will take a couple of decades from now. Rest assured, that we'll continue to use credit/debit cards and physical cash for quite some time. The COVID-19 pandemic has only increased interest from central banks and governments into launching CBDCs for people to use in the mainstream world. But improving the world's economy doesn't happen overnight.

In the end, crypto and CBDCs will live alongside each other for the foreseeable future. People will still "hodl" physical cash, but they'll be unable to use it because its "legal tender" status will be revoked. Maybe banks will allow people to trade physical cash for CBDCs? Whatever happens in the future, we'd have to admit that Bitcoin has changed our world for the better ever since it came into inception back in 2009. Just my opinion

The thing I noticed now that banks here are doing is limiting the withdrawl per months by cards to 5 uses. After that you have to pay fees just to get cash. It's another step to bring people to use cards only. I see it with most young kids at the supermarket. They never you cash, cards only. Unfortunately it's the future, but I will try to stick as long as possible to my beloved cash and gold. It's been around for thousands of years.

We won't be able to see sudden mass adaption of digital payments and the fall of fiat currencies would also be a step by step process rather than a sudden one. We can see people are already using digital payment methods and also there is huge  growth in the number of people transacting with digital payment methods rather than cash and once there will be a majority of people doing digital payments we can then see a shift from these digital payment methods to cryptocurrencies or maybe national cryptocurrencies in the far future. Pretty surely the fiat currencies will remain for at least half a decade more from now.
Before trying to shift people from fiat to digital currencies we have to first develop that kind of infrastructure to support the digital payments everywhere and also the telecommunication system has to be upgraded to keep up with the increasing demand and then only we can see the future where digital currencies will rule the world.

Nothing can beat hard cash

However, CBDCs will be a step forward from payment cards issued by banks. Right now we can't directly communicate with a central bank, only through middlemen like regular banks. You know, as the saying goes, when you talk to God it's prayer, but when God talks to you, it's schizophrenia. As it turns out, now you can send curses to the central bank, then with a CBDC the central bank will be able to send curses back to you directly

They'll certainly try.  So it's up to the people like us, who understand the motives behind their actions, to inform other people that it's in their interests to resist this change.



Indeed.  It's not always convenient.  I can recall two occasions in the last couple of years where card systems have had major outages.  For those that relied primarily on card payments and didn't have sufficient cash on them, this caused serious disruption to their day.  I suspect even those people would now have reservations about eliminating cash entirely, having experienced how potentially fragile a centralised digital system with single points of failure can be.

We're still far from cashless societies. Physical money is a part of a country's history and they will not easily abandon it just because cashless transactions are more convenient. Also, there are still difficulties regarding tbis cashless transactions. In some areas,  internet connection is a problem which limits transaction of this kind. So maybe, if further developments will occur, which is more likely to happen in the future, things might rely more on the technology. But I doubt it will only be cryptos which will be the center of every transactions in the future for the reason that there are many digital currencies coexisting with cryptos. For sure, major changes are needed as well as developments in financial system before this thing happen.