Topic: The End of Credit/Debit Cards - page 7. (Read 1441 times)

What you will consider as of now is that even the CBDC in consideration is not yet established because the people are not using it as they have so much developed interest with the use of cryptocurrency, master card, visa and many other gateway payment system should not worry as long as fiat currency still remains relevant, they will always have to contend with he use of CBDC over their services except for crypto adoption as a mainstream for making payments.

Many people have already stopped using plastic/physical cards in favor of virtual ones... they even prefer to pay with smart watches.

I would call this proto-CBDC.

Personally, I prefer plastic cards because they require no electricity/internet from me (unlike smartphones).

What if my phone battery runs out? What if I'm stuck to GPRS? Plastic solves these problems.

Regarding MasterCard and Visa, I think they will evolve towards a new business model (crypto -> CBDC bridge). They're aware of the potential of the emerging crypto market.

MasterCard is affiliated with DCG, so they're not going away.

Hell, these days we even see telcos offering money transmission services (i.e. Cosmote/Payzy).

I do not see much difference that CBDCs will do to credit/debit cards because in the end, it will simply boil down to individual preference. Many people feel more comfortable remembering their pins and having their OTC sent to emails or mobile text rather than memorizing private keys or storing/carrying them about in their phones and tablets. My country once launched a digital currency but it died a natural death for reasons I can not completely adduce. People did not just see the need to use the stablecoin pegged to our currency even though government spent huge funds in its marketing. So, like I said before, worldwide adoption of CBDCs will not bring an end to credit/debit cards.

Already the use of credit/debit cards have already reduced since mobile apps banking platforms have been put in place such that everyone can use their mobile phones to makes purchases of goods and other items but there are still payments that requires this credit/debit cards to authenticate payments however this medium of payments have a credit and debit limit which can be frustrating when you want to make large payments or withdrawal that is why Bitcoin will be the end of this debit/credit card because it has not credit limit or withdrawal limit.

That's really bad news if you ask me. Definitely a step towards discontinuation of cash money and a new level of financial slavery. Directly the opposite of what Bitcoin is trying to achieve.

when phones have passcodes and app logins.. but 'tap and pay' debit cards can be tapped by someone simply brushing passed you. cards are more vulnerable
there are also cases of ATM card cloning devices that fit to ATM's in a hidden way which also make cards vulnerable
atm cards can also be stolen via pickpickets

I quite doubt it.

It's true if CBDC exist, people should able to transact through cell phones without need to use plastic card.

But, considering there are many cases where someone claimed their money disappeared due to malware or getting hacked, so I don't think people will feel safe when their phones are connected to most of their money.

Using plastic card will decrease the chance to get hacked.

I don't think that Credit/Debit cards will become obsolete because of the introduction of CBDCs. People are already using phones and computers for banking transactions without intermediaries and it has not stopped the banks from issuing ATM cards. ATM cards have some special functions that will still make them relevant. In my country, there has been a recent increase in ATM use because POS are now popularly used for banking services.  

ATM cards will be helpful when you don't have access to phones or computers. Sometimes there might not be a power supply to charge phones, ATM cards will be the only option to access funds. Operating an ATM might be simpler than using online transactions, so many people still favour ATM cards, especially in developing nations.

The introduction of CBDCs might gradually start reducing the use of ATMs because people might start migrating to CBDCs to cut transaction costs but it will take some time before it will start affecting them adversely. Many countries have not even adopted the CBDCs policy so there will still be a large market for these intermediaries for a long time.

Debit cards might eventually become obsolete, but credit cards cannot be replaced by the central bank unless the central bank itself starts issuing retail loans, which doesn't seem likely to happen anytime soon. However, I wouldn't consider it entirely impossible; it would just require a tremendous financial crisis where all retail banks go bankrupt, allowing the central bank to seize the opportunity.

Asking about the survival of debit cards differs greatly from asking about the survival of these companies. These companies will likely survive, because they're not directly linked to retail banks, which are the entities that might ultimately fall in terms of economic prosperity, or even cease to exist at some point.

yep. thats kinda the point
also its the move to the cashless society as paper/metal coin currency has costs for banks too

however, CBDC is not a process of the fed/central bank processing everything
imagine it like a multisig that a central bank partners with several commercial services and they multisg units of currency into existence managed by mainly the central bank but agreed by the commercial banks(payment services)

these commercial payment services have outputs(fund destinations) where they get certain amount of that signed in input value
they then use those UTXO's as their references to then create their own signed transactions with each other as a child transaction
and then below that use grandchild transactions for their bank branches and then  and then microtransactions of inbound balance for customers of branch.

which get updated at customer payments to change who has inbound value, where balances of the current state of the transaction are updated when payments are routed

the central banks wont do all the KYC/monitoring. they delegate it to the commercial banks(like they do now in normal fiat)
but in general yes its to remove the need of visa/mastercard which costs commercial banks money, rather than they making money from transaction fees, which banks want to start getting

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.