Cash Expected To Become Obsolete

Cadrene Heslop

A post in The New York Times expects cash to become obsolete "soon.".

The author notes some people like cash for two reasons. The first? The texture of physical currency in their hands. Second? The confidentiality of these transactions. But they also note that digital payments have fast become the norm. To keep the money relevant, central banks are experimenting with digital currencies. These are virtual, like Bitcoin. Unlike Bitcoin, the state will issue it. And it will function like traditional currencies. (source)

The release could begin like an experiment. The central bank would introduce a limited amount into circulation. It would function alongside other monetary options. Afterward, circulation would get expanded. If it gained popularity, cash would then fade away. (source)
Photo by Ferran Fusalba Roselló on Unsplash

The author notes the activities of three countries. China, Japan, and Sweden have begun trials of central bank digital currencies. The Bahamas already has the world's first digital currency. The Bank of England and the European Central Bank are also preparing for similar trials. While these experiments occur, America remains on the sidelines. The author says America should develop a digital dollar. Not to follow others, but because of the benefits. (source)

The benefits? Security since cash is vulnerable to going missing. Digital protection systems have also come a long way, as noted by Bitcoin's innovation. Digital currencies are also said to benefit the poor. Many would get access to the necessary banking services. These services could also be fee-free and non-interest bearing to ensure access to all. (source)

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*Disclaimer: This article is for informational purposes only. *This article got written using accredited media reports. It is based on an opinion post by an author from The New York Times.* Advice Disclaimer: The article and the information contained herein are not intended to be a source of advice. This article should not be considered money, financial, or other advice. The ideas, numbers, and strategies should never be used without first assessing your own personal and financial situation, or without consulting a financial advisor or other professional.

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