Re: How long will it take banks to phase out physical cash completely?
As we enter the digital realm due to the effects of COVID-19, the process of central banks phasing out physical cash from existence might take place soon. Before the outbreak, we've been accustomed in using credit/debit cards and contactless payments greatly eliminating the need for physical cash. Now that we're in a "COVID Era", things have accelerated quite a bit. Banks and governments are in talks of adopting CBDCs which could completely eliminate the need to pay for things with physical cash.
Now the real question is, how long will it take banks to start the transition from physical to digital cash (CBDC)? Do you think that physical cash will still be used right after governments adopt CBDCs in their entirety? Or will it take decades before every single person in the world stops transacting with physical cash, paving the way for a full-fledged cashless society? Your input will be greatly appreciated.
The global pandemic might speed up the process of digitization by a bit, but its still a long way for banks to disappear the physical cash currency completely. Many national banks across the world are onto the idea of launching their own central bank digital currency also know as CBDC. It will still take the government at least 5-7 years to eliminate the use of physical cash to a great extent.Now the real question is, how long will it take banks to start the transition from physical to digital cash (CBDC)? Do you think that physical cash will still be used right after governments adopt CBDCs in their entirety? Or will it take decades before every single person in the world stops transacting with physical cash, paving the way for a full-fledged cashless society? Your input will be greatly appreciated.
Complete digitization of the payment system may take 10-15 years. Dominos in some countries has stopped accepting cash as a payment method due to the ongoing pandemic scenario to avoid any type of contact even through paper money. So, thats definitely a step towards digitization.
Everything is correct, but only on condition of stable economic development. If you look at 2020, the word stability can hardly be applied to it. There are too many incidents that can create global problems and disasters. We cannot know what technologies will appear in the near future, it is possible that something that will replace all financial assets will be invented, or there may be a war that will stop all development on the planet.