of course cash will continue to be used regardless of future developments in money, say almost all countries will use digital systems but fiat money will continue to exist and be used.
Why do you think the amount of cash withdrawals is limited, maybe because they want people to stay dependent on the bank, or indeed the money in the bank runs out of funds.Several local banks in my country are enforcing the regulation in the midst of a pandemic like this, which worries some customers.
Topic: Is it time to think of cash and bank deposits as different currencies? - page 3. (Read 504 times)
August 31, 2020, 11:26:04 PM
August 31, 2020, 04:59:35 PM
Yeah this is a nice way of thinking out why the fiat currency had been always subject to lesser capacity to buy over the period of time this because of the banks with their cashless base transaction which does not use the fiat or physical money itself. Now, because the only thing that shows in using bank service in transaction are thimise digital numbers then was there an only made as a back up. But if that fiat will going to circulate then high chances that it could get a high value or high capacity to buy knowing the economic rules on demand and supply. If only this fiat money will going to circulate then we could really see an increase value of fiats.
August 31, 2020, 04:33:24 PM
Everyone must accept payment in cash, but they can reject payment via bank transfer, cheque, etc.
This is the one of the main reason why people were withdrawing their money from the banks. In this dire situation where there's a threat of a financial reset, it's always gonna be better If you have cash on your hands.
Everyone accepts cash, I mean literally everyone, and only cash has the most convenient access to everything around you.
Another thing is the continued depreciation of the fiat currency, thus people are looking to invest their money on something that has a chance to grow it rather than It will gradually lose it's value. Bitcoin is amongst the best options an investor could choose from the list.
August 31, 2020, 12:41:17 PM
Do you in my country, government through the Central bank makes a rule that make it impossible to collect some little amount of money from the bank. You will be told to make use of your debit card. With the recent pandemic and continuous debate about economic recession people are fearing of losing their money and that is the reason there has been continuous withdrawal more than deposit. I strongly believes it will get to a point when the bank will be limiting the number of withdrawal
August 31, 2020, 11:41:57 AM
Not sure if cash and demand deposits are different in your country, but it's different in my country. Not a different currency per se, but different in legality (and issuer). The central bank issues cash, whereas commercial banks issue demand deposits.
Everyone must accept payment in cash, but they can reject payment via bank transfer, cheque, etc.
Everyone must accept payment in cash, but they can reject payment via bank transfer, cheque, etc.
August 31, 2020, 09:51:52 AM
just in case there are difficulties in the future.
Just incase what happens mate
Are you having any dream
Please share The US election is coming in November and we are all going to be here, celebrate a peaceful transition of government.
August 31, 2020, 09:51:02 AM
We dont see the same level of cash withdrawal as it was before. Banks should be strong enough to survive this
August 31, 2020, 09:39:59 AM
Banknotes give you freedom as well. 
Anyway this thread was intended to be speculation about the future,rather than comments on the past or present. I'm holding banknotes just in case there are difficulties in the future.
Anyway this thread was intended to be speculation about the future,rather than comments on the past or present. I'm holding banknotes just in case there are difficulties in the future.
August 31, 2020, 09:33:57 AM
There are many reports available via a Google search. This is the first one that I found.
https://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
https://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
Quote
Some banks have imposed withdrawal restrictions, while regulators warn consumers that keeping large amounts of cash can be risky, since it is more susceptible to loss by fire, flood, or theft.
Quote
Officials also pointed out that deposits at a bank or federally insured credit union are backed by the government up to $250,000.
Well going through the link, I think that all is normal with the huge withdrawals. Banks and government have restrictions already in place to guide against unnecessary bank transactions both with drawals. I guess this is the control as against a decentralized system. With the bank system, all seem to be in control but cryptocurrency gives freedom to handle your assets how you wish. That's is the difference
Quote
A spokesman for London-based HSBC said the bank, which operates globally with retail branches in the U.S., had not seen any change in cash withdrawal patterns.
David Tente, executive director of the ATM Industry Association for the U.S., Canada and the Americas, said he had not heard any reports of consumers rushing for cash, but acknowledged that such a need could arise.
“It would not be unusual in times of crisis to see that happen — people are going to rely on cash if they are concerned about being able to purchase what they need,” he said.
David Tente, executive director of the ATM Industry Association for the U.S., Canada and the Americas, said he had not heard any reports of consumers rushing for cash, but acknowledged that such a need could arise.
“It would not be unusual in times of crisis to see that happen — people are going to rely on cash if they are concerned about being able to purchase what they need,” he said.
Quote
UK keeping an eye on situation
A spokesperson for UK Finance, a trade association that represents the banking and financial services industry in Great Britain, said it had not seen any rush for cash withdrawals.
However, officials said the UK cash industry had contingency plans in place to deal with a range of scenarios and was closely monitoring developments.
A spokesperson for UK Finance, a trade association that represents the banking and financial services industry in Great Britain, said it had not seen any rush for cash withdrawals.
However, officials said the UK cash industry had contingency plans in place to deal with a range of scenarios and was closely monitoring developments.
From the bank statement of the bank officials, I can just deduce that the withdrawals are for needs and investment like buying of cryptocurrency too because many businesses are springing up on the internet.
August 31, 2020, 08:40:36 AM
There are many reports available via a Google search. This is the first one that I found.
https://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
That was April, and there is no data backing the claim of the authorhttps://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
https://www.wsj.com/articles/the-coronavirus-is-doing-weird-things-to-the-banking-industry-11598779800
Do you have any evidence that "many people are withdrawing large amounts of cash at the moment" or you are talking about gossips and rumors?I don't want to discuss gossips,rumors and conspiracy theories.
One branch out of 10 000 ran out of cash for a day and the whole internet was in apocalypse mode.
As per the articles I quoted above that have real data, not rumors, no such thing is happening, at least not in the western world.
August 31, 2020, 08:35:17 AM
There have been cash withdrawal limits, and Visa was down for a couple of days on a couple of occasions in the UK. I feel that these may have been deliberate trials to gauge public reactions. Also, I believe that the banks' creations will be pseudo crypto, rather than something that will benefit customers. I doubt if there will be a cap on issuance either.
I appreciate that cash and fiat deposits have linked values, but when the current fiat system is replaced, I wonder if the current cash notes will continue to be used, and, id so, for how long.
I appreciate that cash and fiat deposits have linked values, but when the current fiat system is replaced, I wonder if the current cash notes will continue to be used, and, id so, for how long.
August 31, 2020, 08:20:34 AM
How can it be different? You deposit cash, you can withdraw cash as well, it's a fiat money, whether in the form of paper money and digital money and AFAIK, banks only print paper money but they don't generate digital money, so the supply is truly based on the money the bank have printed. Also, fiat system is not the same as the cryptocurrency where supply is limited, with fiat, the government can print money if they wish to with a valid justification, so I think nothing is different here.
Maybe banks run out of cash but this is just temporary because as long as they have a balance in their bank account, they can always convert that into paper money to whatever depository bank they are depositing their funds.
There are many reports available via a Google search. This is the first one that I found.
https://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
https://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
Quote
Banks and credit unions across the United States have run low on cash as the coronavirus pandemic prompts customers to make unexpectedly big cash withdrawals.
As covid-19 worries cause large numbers of customers to withdraw huge amounts of cash at the same time, banks and regulators are beginning to fear a bank run.
As covid-19 worries cause large numbers of customers to withdraw huge amounts of cash at the same time, banks and regulators are beginning to fear a bank run.
Maybe banks run out of cash but this is just temporary because as long as they have a balance in their bank account, they can always convert that into paper money to whatever depository bank they are depositing their funds.
August 31, 2020, 08:15:43 AM
Both cash withdrawn and cash deposited on banks are still fiat based currencies so they are still the same and cannot be further differentiated. It is just that as of the moment, there is really a high on demand on using cash which pushes people to do withdrawals rather than deposits for the fact that having cash aside from those digital money on digital wallets are badly needed as for now and people seems to find it hassle and senseless to deposit their money on banks when they are going to do withdrawals when cash is needed to sustain necessities at times like this.
August 31, 2020, 07:13:13 AM
There are many reports available via a Google search. This is the first one that I found.
https://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
https://www.retailbankerinternational.com/news/us-banks-struggle-with-large-cash-withdrawals-amid-covid-19/
August 31, 2020, 06:31:01 AM
I know they are both based on fiat values, and governments are trying to reduce the use of cash, but many people seem to be withdrawing large amounts of cash at the moment. Obviously they are expecting difficulties with the use of banking accounts in the future. I suspect that they are expecting a financial reset, as governments try to replace the current virtual currency with a pseudo-crypto currency. Cash may become important in the transition period.
Bitcoin and alternative crypto currencies do provide alternatives,but they may continue to be slow in adoption. Cash has been trusted for many years despite the fact that it is a depreciating asset, and I believe that it will continue to be used after the change from the current banking system. Obviously banks will resist this, and any cash deposits will be withdrawn to reduce the supply. This could lead to an increase in the value of cash based on the current fiat currency, always providing that the public continues to use it of course.
Bitcoin and alternative crypto currencies do provide alternatives,but they may continue to be slow in adoption. Cash has been trusted for many years despite the fact that it is a depreciating asset, and I believe that it will continue to be used after the change from the current banking system. Obviously banks will resist this, and any cash deposits will be withdrawn to reduce the supply. This could lead to an increase in the value of cash based on the current fiat currency, always providing that the public continues to use it of course.
There's no evidence that governments are trying to replace virtual currencies with cryptocurrencies.Central bank digital currencies (CBDCs)are still in project phase in some countries.
Do you have any evidence that "many people are withdrawing large amounts of cash at the moment" or you are talking about gossips and rumors?I don't want to discuss gossips,rumors and conspiracy theories.
$1 in cash and $1 in a bank deposit are exactly the same fiat currency.The only difference is that the bank owls you the $1 in your bank deposit.
August 31, 2020, 06:29:45 AM
Banks "resisting" means they would also no longer accept cash/physical-fiat currencies?
Would this also mean that the central bank will stop printing money and we will only play with the supply and demand since paper money will become limited? It's quite complicated to me, @Jet Cash, can you enlighten me a bit? I imagine that people will keep circulating the physical currencies until they gradually fade away and disappear. But I doubt all human beings in the world will stop using physical things they find appropriate as currencies
Big countries with advance financial system would prefer a digital currency but there's a big part of the world which still rely on paper money mostly as their infrastructures are not that capable to handle and make people fully adopt with digital currency, so they will continue to produce paper money.
August 31, 2020, 05:53:49 AM
Banks "resisting" means they would also no longer accept cash/physical-fiat currencies? I imagine that people will keep circulating the physical currencies until they gradually fade away and disappear. But I doubt all human beings in the world will stop using physical things they find appropriate as currencies
August 31, 2020, 04:13:53 AM
I know they are both based on fiat values, and governments are trying to reduce the use of cash, but many people seem to be withdrawing large amounts of cash at the moment. Obviously they are expecting difficulties with the use of banking accounts in the future. I suspect that they are expecting a financial reset, as governments try to replace the current virtual currency with a pseudo-crypto currency. Cash may become important in the transition period.
Bitcoin and alternative crypto currencies do provide alternatives,but they may continue to be slow in adoption. Cash has been trusted for many years despite the fact that it is a depreciating asset, and I believe that it will continue to be used after the change from the current banking system. Obviously banks will resist this, and any cash deposits will be withdrawn to reduce the supply. This could lead to an increase in the value of cash based on the current fiat currency, always providing that the public continues to use it of course.
Bitcoin and alternative crypto currencies do provide alternatives,but they may continue to be slow in adoption. Cash has been trusted for many years despite the fact that it is a depreciating asset, and I believe that it will continue to be used after the change from the current banking system. Obviously banks will resist this, and any cash deposits will be withdrawn to reduce the supply. This could lead to an increase in the value of cash based on the current fiat currency, always providing that the public continues to use it of course.
As long as depositors can withdraw cash, it'll stay pegged 1:1 to bank deposits. Sort of like when Bitfinex and Tether couldn't pay out withdrawals in April of 2017. The peg broke down and a 10-15% disparity developed between USDT and USD spot markets. If a bank run were to occur and people can't withdraw cash, I assume a similar disparity will develop, with people offering a premium for cash payments vs. electronic (bank-settled) payments. Ultimately it doesn't matter if demonetization occurs.
August 31, 2020, 03:01:35 AM
I know they are both based on fiat values, and governments are trying to reduce the use of cash, but many people seem to be withdrawing large amounts of cash at the moment. Obviously they are expecting difficulties with the use of banking accounts in the future. I suspect that they are expecting a financial reset, as governments try to replace the current virtual currency with a pseudo-crypto currency. Cash may become important in the transition period.
Bitcoin and alternative crypto currencies do provide alternatives,but they may continue to be slow in adoption. Cash has been trusted for many years despite the fact that it is a depreciating asset, and I believe that it will continue to be used after the change from the current banking system. Obviously banks will resist this, and any cash deposits will be withdrawn to reduce the supply. This could lead to an increase in the value of cash based on the current fiat currency, always providing that the public continues to use it of course.
Bitcoin and alternative crypto currencies do provide alternatives,but they may continue to be slow in adoption. Cash has been trusted for many years despite the fact that it is a depreciating asset, and I believe that it will continue to be used after the change from the current banking system. Obviously banks will resist this, and any cash deposits will be withdrawn to reduce the supply. This could lead to an increase in the value of cash based on the current fiat currency, always providing that the public continues to use it of course.
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