Topic: The future of the paper money - page 281. (Read 416598 times)

If paper money loses its value at least I can use it for firewood lol. I think there will always be some form of paper money, but I see crypto really taking over imho. Everything is going digital I could be wrong but I see it as inevitable in a good way.

There are some situation that cash(paper money) can do it job better than digital money.
I think that it will exists as long as we trade things (which means for a long time)
Its popularity maybe can be less than now but it can not disappear.

The price of bitcoin will grow exponentially over time. Because satoshi has designed it so. When, people widely uses bitcoin, then the existence of paper money will be rare. In internet we can not use paper money, so when internet commerce boom, paper money will fly away.

It will be so absolutely. Exactly because are and will be an fixed amount of bitcoins in circulation there will be always a higher price for them it it will be in use legally. It will be always bigger and bigger the number of people which will want  or need it and this will increase certainly its price in time. The question is only when. And if it will be regulated.

Not sure if this has already been posted, but Sweden is already on the way to get rid of cash..

https://www.credit-suisse.com/nl/en/news-and-expertise/economy/articles/news-and-expertise/2015/03/en/sweden-we-dont-accept-cash.html

Appearently they were the first to introduce it in Europe, and they are now the first to start to get rid of it.

I feel more powerful with bitcoin, as I have the reassurance that there are only 21 million of these coins, and they will most probably go up in price.

I think Andrew Haldane was talking about issuing a digital fiat currency, not a cryto- or crypto-backed currency.  (The latter would be revolutionary coming from a member of the establishment.)

Remember, the whole idea is being able to drive interest rates negative (for which the stated goal is to stimulate the economy -- while the real goal is to keep the modern world system alive.)  Banning cash (paper money) is only a necessary step to prepare for negative rates.  The authorities are basically indifferent between paper vs. electronic money, since both are fiat.

It would be a big power grab.

But I think there'd be practical difficulties.  When they ban cash, they also must ban gold, silver, and Bitcoin, since people would flock to these hard assets when interest rates turn negative.  This would be easier said than done, since countries would have to co-operate, and American power is waning while global awareness of monetary abuse is growing.

Perhaps, a very horrific terrorist act would give authorities the excuse and the public support to ban all those assets (since gold, silver and Bitcoin could also be used to finance terrorism.)

Maybe, the final outcome will depend on what happens first, a major terrorist attack, or the decline of the US beyond a certain point (through minor cycles of US strength going up and down, but trending down.)

i domt think bitcoin or any crypto currency can ever became a future economical currency or if the topic is saying about future paper money then we need something like bitcoin but with stable market prices.

I think governments will try to push paper money for as long as they can. Without it they are pretty much powerless.

I hope you're right, but that's not the impression I got.


It sounds like he's saying that people will naturally try to withdraw their savings from the bank in cash form, which would in turn limit the amount the banks can print out of thin air using fractional reserve.  So in order to avoid that, simply abolish cash.  Force everyone to use financial intermediaries to "save" (read: destroy once and for all) the economy.  

On the plus side, Haldane is just one person at the BoE and clearly isn't making all the decisions, as it looks as though they're still moving towards replacing existing notes with the new polymer variety.  It says they're aiming to have the £5 note in circulation by 2016, so I doubt they'd be doing that if they were planning to phase out cash in the immediate future.

They are not talking about banning paper money altogether, they are just saying that using paper money will be more expensive than using some state issued digital currency. Governments will do this on purpose because it's cheaper to just maintain centralized blockchain and centralized blockchain tokens can be more easily controlled by the governments than paper money.

The blacksmiths also were very confident @WW2 that their jobs will be secured forever, and that horse carriages + horse shoe maintenance will forever.

To bad they were fucked in the ass 5 years later, in the 1950's when cars take over the world, and they lost their jobs instantly, forever...

that is very correct
I guess if you had to change banknotes into coins

Im not sure banning paper money will work, goverment doesnt want
Lose control over the currency they're holding. And im sure
Many people will be againts it, and it will be very risky.

Paper money would never die not untill everyone is educated enough to understand the benefits and use of cryptocurrencies
Another reason is Majority of the people like physical money more because they want something they can keep with themselves in pockets and these people don't know such thing like bitcoin exists...If we need to remove paper money completely then i guess its only possible if official money is replaced by government to cryptocoins and i wonder that will never happen.

Hasn't died at all. Sure we've moved to credit cards and such, but in the end, that's all backed up by paper money.

For the developed and developing countries, maybe one day it will.
For the developed countries, I think it will take 20-50 years, and for developing countries, 40-50 years.
It may raise risks such as total control of electric currency system by government, when crisis happens, people can't control any assets in their hands but has to obey the rules of government banks.
However, I think it is a good way to strengthening the governance of corruption.

Paper money already died. People has switched over to plastic cards long back itself. Now it's time to make a movement towards digital money, bitcoin. 

Yeah, governments would like to see cash banned in favour of electronic payments, but I don't think the people would accept it just yet.
Plus I could see some issues with that, security comes to mind...

Unless I missed it, there doesn't appear to be a link in the thread to the article that caused it, so here it is:
http://www.telegraph.co.uk/finance/bank-of-england/11874061/Negative-interest-rates-could-be-necessary-to-protect-UK-economy-says-Bank-of-England-chief-economist.html

If there were significant signs of such a move taking place, I'd be moving out of fiat pretty sharpish and would be strongly encouraging others to do the same.  An "economy" where every single transaction has to go through an archaic financial institution would be lunacy.  They can't cope responsibly with the money they already have control over, I don't see the sense in them having total and complete control over all of it.  If they did, they would simply be presiding over a collapse that comes sooner rather than later.  Count me out.