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#FinTech revolutions of the early 21st Century are now bringing about a qualitative leap.   Moreover, open finance systems are now on the verge of being mature enough to replace the #fiat system as solidified under the Bretton Woods agreement.

SOURCE: https://tagionteam.medium.com/technology-is-rendering-the-fiat-money-system-of-the-20th-century-obsolete-c0c39e4ceb7e

Technology has grown tremendously since the advent of the internet, making it easier for people to exchange information. Issues related to research and technology are resolved more quickly over cyberspace. The Internet has changed the face of the world, especially the traditional economy. In the past 10 years, the use of cash has become a trend along with the strong development of mobile devices. I have a belief that in the next 10 years the world will gradually switch to eliminate the use of cash and replace it with electronic money, money from electronic banking services.

The fiat of a thing seem more of an old era currency, but we still make use of it today, it will take time before it can be completely eradicated, because many people still depend on it as they make use of it daily, people depend on both the paper and and digital aspect and I do not see it to be obsolete for now. With time, it is very possible it will become obsolete, but this will take long time to achieve, when CBDC will be the fiat of tomorrow which will make use of blockchain technology to operate, and this is happening already as many countries now creating their own cryptocurrencies.

I think the world is already using the electronic system of payment which is that operating as cashless. People don't carry cash anymore around where they go or travel to. They either transact through mobile app and this is all in the help of technology. The electronic is an advantage to the world , we don't hear money being stolen as it was before this time.

Technology becomes so important in daily lives of every people, we can say that it is the art of our life especially the cellphone and the computer on which we can access the internet for having communication with other countries, to contact our relatives, gaining knowledge and earning money as well on which by this we learned about this cryptocurrency which can be called as an important currency as an alternative to the traditional one which is the first currency.

Well, at least a part of the current monetary system does not have to be static. It adapts to changes including ones brought by technological developments.

Fiat is changing. To a certain extent, it is dynamic. We have seen how fiat has gradually shifted from cash to electronic, from gold-backed to debt-backed, and so forth. In the near future, it is very probable that it will take the form of a digital currency which is using the Distributed Ledger Technology (DLT). In other words, it flows with the time.

However, certain foundations of the fiat monetary system hardly change at all. I'm afraid it won't be running completely independent from governments and probably from the powerful elites.

It's not on the verge, it's nowhere near or close to maturing imo. Its development has stagnated imo to being an asset, a trading asset specifically, especially since most of those that actually know crpyo knows of it as a "money making machine" or a "stock like" something. The very first step in open finance maturing imo is for people to properly know what it is, how it's used, and what it really is for.

As for Fiat, well the system has been running for almost half a century now (Reference from how long it was used in the US), and with that long, you would see a lot of negatives, and a lot of those are being exploited. Now that a possible replacement has appeared, it's quite natural that most would assume that it would actually replace the system we have right now, though imo a more collaborative or cooperative relationship would remain. The reason being that the current system lets people behave "lazily", leaving most, if not all details and work to the central organization managing their funds. Well, there's also the fact that those in power wouldn't agree.

The astonishing advancement of technology within the country has been visible for over a decade technology is introducing the obsolete paper money system of the 20th century and therefore the gathering of human knowledge is occurring quite ever before. Technology communication has become much easier and faster it's also easy to speak regularly with relatives not only within the country but also abroad there has been such a revolutionary change within the communication system during this country for little but effective mobile devices. At an equivalent time the utilization of computer and internet has made people's life more dynamic.

I think the article has a fundamental flaw: the fiat system is being reinvented but it's still fiat.

The fiat money system of the 20th Century was based on bank notes and coins and that is on the way to extinction, but replaced by the new forms of fiat. Many people don't use bank notes and coins any more, they just pay with their mobile phones. They also save, invest and carry out financial operations in general from their mobiles, or from they computers at least.

Not to mention that many countries and central banks are planning to issue fiat cryptocurrencies.

So, yes, technology, has made bank notes obsolete. So what? The new fiat is fiat after all.

We are in 21st century if I am right. To say that paper money is obsolete is far fetch by global standards, there are countries that still heavily rely on paper money due to low IT infrastructure in a given country. I am not saying that it will not completely obsolete but it will be long time before we could say that it becomes obsolete. Right now, it is more convenient to use fiat in my country even though I use crypto because there are few outlets or businesses that have a crypto integrated system.

Maybe it's gonna renders fiat money useless but it's still far away to go. Try to travel across the world. Most of them are still using fiat money or paper money for daily activities even if there's digital wallet already in that country. Even in developed countries still uses fiat money.
Saying that it already renders fiat money system obsolete is not really correct. I even think that in the future both thing could coexist since they have their own advantage or disadvantage no need to side over one or another.
Cryptocurrency however right now mostly considered as investment instrument for many instead of currency.

It is undeniable that paper money has already become a burden even for states due to the high cost of issuing and servicing it, but paper money should not be treated as unnecessary in the current digital age.  High technologies are very unreliable for humanity during the current climate change and massive natural disasters.  Now we have become very dependent on the Internet and other technical means.  You can imagine what will happen if the Internet disappears due to some kind of global catastrophe.  Physical money should exist as a backup system of payments for any unpredictable disasters.  And it should be borne in mind that cash is the most untraceable.

Just because the technology is there doesn't mean that people will use it. I agree that if you take all the improvements in blockchain world and put it in the regular fiat world you could replace so many things and you could definitely make it work as well, implementation is not the difficult part, it is not simple neither but we have enough developers in the world to make it happen if it comes to that.

The problem is that fiat world is managed by a lot of people who are super rich in fiat world, which means if we move to blockchain world they would lose a lot of money and they do not want that, since they are wealthy they do everything in their power to make sure that doesn't happen. So, adoption of blockchain technology is stalled by those type of people.

Fintech  is making physical money obsolete, not so much fiat. PayPal and Square have done more for digital payments that crypto has done, and in my estimation, ever will do. The digital payment platforms that are actually changing the world all run on fiat. Crypto is still a niche product fulfilling a niche role for niche investors. It’s not anywhere close to being a viable medium for exchange on a large scale.

If that is the case, then the Crypto market will have another new opportunity to grow in the near future.  Lately, it seems that tech companies are heading to the crypto market quite a bit, especially in the US. Could tech investment organizations capture some of the hidden information in the future? Or did Bitcoin halving really change their stereotypes? ???

That’s false, fiat money has become so attractive that people will kill for it, people are rushing to grab every opportunity that can make a profit, because their mindset is “I got mine” “profit come from your loss” “money come from taking from their wallet, not the other way around.”

The wallets are secured by the companies by the companies that created that wallet application and that motivates people to use cashless. It can be said that cashless transactions and payments are becoming a good and popular trend all over the world. As for cryptocurrencies alone I have no doubts about their reliability but the problem is storing them in third-party wallets. There are many cases where users have their money stolen due to the installation of unknown wallets.

Yes, as expected things are going to change and they are changing already. But the way, I see the change is that we will be getting to a level where wouldn’t be in need of cash to be able to make transactions, we are just going to be making use of the electronic payment methods.

We already have all these electronic payment methods, but not everyone can make use of, because there are still people who are not educated and those who can’t understand how these electronics works, so they prefer to still make use of cash. Cash won’t be phased out completely because of them.

I believe the government encourage the obsolete of fiat currency ever since they support the POS/terminal and others electronic payment which they later understand afterward that digital currency is inevitable when the IMF Boss advised them that the solution for economic meltdown and to stop the ridiculous fund spent on printing more fiat currency is by the government creating their own national currency but some government sees Bitcoin as a threat when they create their own national digital currency. Besides, this is why Libra was not allowed either either

Well shouldn't that be the definition of money though, like a proof of work that you have done so the society pays you back? And if someone steals the note it means he steals the proof of work done by me for the society which is clearly my loss for his profit. That's what makes money fundamentally legal tender.

If you're talking about the tangible aspect of fiat then yes. We're seeing a big decline in the number of transactions and people who regularly use fiat. Most of them overrun by online cssh payments which are still backed by fiat money anyway but is in it's most digital form. People got a taste of freedom when they finally got the chance to not open thsir bags and pull out their wallets everytime they would buy or sell something. So yeah fiat as a tangible money is gone. But fiat itself, not so sure about that!

i dont think we will be seeing in our lifetime that fiat money going to be obsolete. yes, we are heading to a lot of digital payments but as you mentioned, still backed by fiat money. a lot of population are still using the physical fiat and dont see them changing in the next 10 years or so.

so i checked the stats about digital payments, how are we doing on this aspect. the number of users worldwide is quite large already but as compared to global population (7.8B - https://www.prb.org/2020-world-population-data-sheet/ ), still far from total adoption. and dont think, there will ever be

https://www.statista.com/outlook/296/100/digital-payments/worldwide

https://i.imgur.com/8d5L9MP.png

It’s bizarre there is no longer a definition of being honest to make money, every profit is soon all about not doing the right thing, every loss is doing all the right thing, because the distortion and disconnection is reality.

Hello. our ideas were alike.  Though, everyone who spends time in the forum is guessing them now.  For a very long time, we have actually gotten used to virtual shopping with banking services.  When we go anywhere, we pay by credit card.  We can say that this is the preparatory stage for the use of bitcoin and other altcoins in daily life by us.

This should be expected in the future. The more the society grows, the more the technology becomes powerful and advance, the more it demands high tech "fiat" system also, which is cryptocurrency. Of course as of now we see it impossible, since the transaction speed is very slow depending on what fee you're going to pay, but as the day goes by, people discover a new way to improve everything, and that's the way to the revolution of the technology we have right now.

Fiat is too old for us to have in this new age we have, and there's a lot of disadvantage on using fiat, on the top of that is Inflation, and note that fiat could be easily steal by someone physically or in terms of hacking the bank because it doesn't have that much security compare to cryptocurrency.

Technology and economy develop in parallel. There are new standards in monetary systems for transactions in different internet infrastructures. Blockchain was born and solves security problems that brought consistency and value to the currency before the insane issuance of central banks.
Technology and economics are perfectly merging on the blockchain. Governments have created digital currencies for their banks, and they meet new standards for better payments. I do not doubt that when old standards are being superseded, it's evolution.

To achieve the global spread of Bitcoin payments we will need more effort in creating quality projects that provide Bitcoin and crypto-related services. Paypal and corporate organizations that accept Bitcoin are an optimistic move.
If all countries support Crypto then the process of bringing crypto into daily use will not be too far-fetched.

Although fiat money system can be obsolete, we cant deny the current benefits of it. The order which has been built for many decades can not be easily knocked down when billions of people depend on it. Since the cryptocurrency grow, central banks and authorities realize that there must be change so that people can trust the system and create a modern environment. Hundreds of experiments have been made so as to integrate new technologies to our traditional payment system. Although cryptocurrencies might not be adopted fully, thank to its existence, so many inventions are built based on the blockchain and its unique utilization.

As far as i know, cbdc is anticipated to be one of the biggest change in the future. It will make the fiat system into something we have never seen before.

But first, issues where they are concerned with should be first utilized in order for such thing to occur. One of the main reasons why Bitcoin and other cryptos are not having that much of support compared to fiat based digital currencies is due to its nature of decentralisation wherein taxation does not exist. So maybe, regulation will be a part of that development to which cryptos will be used in daily life or daily transactions. Which is quite tricky still at this moment. Knowing that such concept is in contrast with its "nature" but let us see for ourselves once further changes occur.

Despite this article I do believe that technology cannot replace fiat , no matter what , since yo achieve a notion where fiat has been replaced we would need to have technological perquisites in every home and at the same time for that we need to end : poverty , hunger and educate people about the same since more than half of the population won't be able to use it as easily they are able to use fiat. Fiat system won't disappear because we also have the solve the issue of the need of internet everywhere. What if there was a light out due to excessive Storm and you had to buy stuff. How would you do that ???

I think before this we do need some answers for sure.
1. Making payments without the need of internet
2. How to involve each and everyone

DO you think that Digital USD is not Fiat, most of the money in circulation are Digital money and this shows the Central governments are also adopting these new technology, If you are comparing Crypto and Fiat currencies both have a place to play in the economy, with the price of Bitcoin now you can't expect me to start using it to buy Groceries

In other words, "meet the new boss; same as the old boss" as the song goes.

Admittedly I did not click on the article, as I suspect that was OP's primary goal in creating this thread, but I would agree that technology has and will continue to change finance.  That might mean the elimination of bank notes and coins eventually, but I hope we're not fully committed to that path.  There are so many things that can go wrong with technology when the power goes out. 

Governments creating their own digital currency is not progress IMO.  I'm not sure if any countries have actually done that yet, but I know China is seriously considering it.  That form of money is not crypto and will only decrease people's privacy when it comes to their spending habits.  IMO it's a lose-lose for everyone involved. 

The statement about the lack of Fiat currencies in the form of inflation is controversial, because for the average citizen it can be a disadvantage that eats up their savings and income. But for the state, inflation within reasonable limits is a boon that allows you to stimulate the economy and force citizens not to accumulate money in reserve, but to spend and invest back in the economy to protect themselves from the gradual depreciation of the accumulated. Economic growth ultimately contributes to the welfare of citizens.

Open finance being mature? Nah still far from being mature or make some progressed. And I doubt that fiat system will be obsolete or replace by a new system that all governments around the world are going to agree. We are still far from that and I don't see it happening in our lifetime. Covid-19 much have push it though, but then again, there's too much at stake right now that fiat system will here to stay.

What you’re saying here is same as people who keep saying that Bitcoin is going to be replacing the conventional currencies we are using, and that things will then be calculated in Satoshis. These people are forgetting that these are just an advancement in technology, and what exactly is technology!? It’s all about science and knowledge being put into use to be able to solve problems and make things easier.

So, Bitcoin is the same thing, same as all these FinTech's that you’re talking, they are just making the way we transact money to be easier. That doesn’t mean fiat is dead.