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.
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.
Yes Sir. For me it will still take decades before that to happen. We should remember that physical money or FIAT is already there when the market was created thousands of years ago. Started from barter system and continually develop as coins created by their government or King before as part of control and authority. And up to know, still physical money either paper money or coins are still in use today.
Still you need to consider a lot of factors before deploying fully cashless society though we can't deny, it is used by a lot of people too anywhere around the world. Anyone is entitled to use physical cash or even the digital way.
One thing that I am thinking in the future is that how are they going to more produce money that they have done today especially for US that had a negative effect on their economy and value of their money. Will the FED just gonna do that so easily? If they employ blockchain as a medium of cashless society or any ways, they can't do anymore negative things that they want.
Also, will there be a centralized currency for everyone around the globe if digital society happens? Still it is very interesting what might happen in the future. What I hope is that these things will be beneficial for us.