Quote from: Fortify on Today at 08:43:39 PM

Quote from: Abiky on May 17, 2024, 11:23:50 AM

Have you ever wondered what the future of credit/debit cards will be once CBDCs (Central Bank Digital Currencies) go public? People will no longer need to use a plastic card to pay for goods and/or services, as everything will be done through a mobile (or desktop) app. This means people will directly interact with the central bank for deposits and/or withdrawals. No need for middlemen like Visa or Mastercard. At least, that's what I think it will happen.

Do you think credit/debit cards will still be a thing after the launch of CBDCs? If not, why? Will payment processors like PayPal, Visa, and Mastercard survive? Your input would be greatly appreciated. Thank you.

It's a bit weird to jump to the conclusion that things like credit cards will become obsolete, but then I guess at a certain point - probably around the same time the CBDC's are mainstream - then we might have transitioned to only storing debit/credit card apps on our phones anyway. A digital currency does not somehow replace these payment processors, these payment processors can use any digital currency and would likely transform themselves into a trusted exchange. It's likely that hackers would be much more aggressive at targeting home computers in a society that had transitioned to a "digital wallet at home" type setup and most people would feel more comfortable storing their money with well positioned and skilled experts.

Do you think we'll see a new form of banking with crypto? The banks will no longer have a monopoly like they do. Any person would be able to form their own bank to hold people crypto. Technically, there's private firms that do this for private asset holding. Due to the small amount of physical storage, if any, that you need for bitcoin, I bet the startup and maintenance costs will compete against a bank.