Re: How much longer until paper money is no longer in circulation?
CBDCs will not replace fully the paper money. They just can't. And not all governments will issue CBDCs.
It will take more generations until paper money gets phased out, if ever. There are still many people who don't use technology, there are still many regions not covered with internet; those just cannot go without an offline currency.
It will take more generations until paper money gets phased out, if ever. There are still many people who don't use technology, there are still many regions not covered with internet; those just cannot go without an offline currency.
That's what I've thought. But if governments are keen into pushing digital payments, then they're going to have to provide the necessary tools to make it happen. I believe the transition from physical to digital Fiat will be a slow one as not everyone is used to credit/debit cards or even in-app purchases. As you've said before, there are many people without access to the Internet. Not only that, but there are old people who don't like to use anything else other than paper money to pay for goods and services. Governments who issue CBDCs are going to have to experiment with it for a while before the transition is 100% complete.
We have to say that digital money is unavoidable, thanks to the ever-rising popularity of Bitcoin and its derivatives. Exactly when will the whole world go cashless, is an excellent question. I'm in no hurry of seeing CBDCs in action, especially when paper money brings greater privacy benefits to the end user. Once everything goes digital, you can say goodbye to your privacy for good. Who knows how the future will look like with CBDCs and crypto in play? Just my opinion
