Post
Topic
Board Economics
Re: The End of Credit/Debit Cards
by
BlackHatCoiner
on 17/05/2024, 12:00:18 UTC
Do you think credit/debit cards will still be a thing after the launch of CBDCs?
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.

Will payment processors like PayPal, Visa, and Mastercard survive?
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.