The End of Credit/Debit Cards

[Z_MBFM]

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.

Yes if central bank launches digital currency there will be no need for plastic cards. then it will be possible to do everything from withdrawing money to paying bills easily anywhere with a mobile phone. While not introducing digital currency, it is possible to avoid plastic cards by increasing the use of MFS. Because many things are now possible through mobile banking, but by updating its services, if international payments can be made in addition to local payments, then the use of plastic cards will reduce a lot. But it will become a very difficult matter to make international payment system through MFS of any country.  For this reason it is possible to implement it properly by introducing CBDCs or Central Bank Digital Currency

[DrBeer]

One of the reasons the world financial system will not let the debit/credit card system be “destroyed” is the loss of HUGE revenue, to the world financial system. It's not just interest on transactions, even more important to them is the actual management of your money (real) through “card accounts” (virtual).

In addition, there is one more thing to consider - card payments generate inflation. No, this is not nonsense... Let's take for example 1 dollar, which came to you in the form of part of your salary. You pay this 1 dollar, for example, for a bottle of water. From this dollar, inside the banking system, a commission is withdrawn, for example 5% (this is to make it convenient to count). Total, the real security of your “card dollar” is already 0.95 dollars. Then the same dollar goes through such operations again and again and again ... At each step - it loses part of its value, as it goes to the BANKS

It is not only the commissions, credit cards affect your psychologically too. When you pay with cc, it doesn't hurt you much at that moment. It feels like you are getting the stuff for free and that makes you spend more. When you spend more and more like that, it also generates inflation because you are pretty much dumping your FIAT on the market.

That's why the FED kept the interest rates low for many years because they wanted people to buy stuff all the time. And you know what, It made sense to do that because why not? If they are giving you free money, you go and dump them on the market. Why keep it? If you don't do that, somebody else will and in the end your free FIAT will lose its purchasing power.

Yes, I agree that it is easier to pay with a card, and from the point of view of consumer psychology it is less traumatizing to the eyes and brain than the procedure of taking bills from the wallet
On the other hand - a person should still control himself, if for him spending money is a process he does not control, he will only stop when the money will be cast-iron and weigh 50 kg - he will just get tired of “paying”

And motivation of buyers is a normal process, because in order for the economy to work it is necessary to sell products produced by the economy. Otherwise we will all start to get poorer, enterprises will close, incomes will fall, unemployment will grow.... I don't think this is what we all dream of

[TheGreatPython]

The idea of credit cards will always stay, the shape of the card could change, many people are using their phones right now anyway, Samsung has that feature and we pay using our phone almost everywhere, and it is an easy thing to do, so we do not carry a card, but the idea of a card is still there and it is not a big deal, because people do need to spend more than what they have to keep the economy going, without that we would have nothing to go on for, and we need this without much trouble.

The idea to stop credit cards existing all together, as in making people only live with the money they have, would crash the economy harder than anything else we have seen so far, this should be something that we can't be doing at all.

[Albarq]

The idea of credit cards will always stay, the shape of the card could change, many people are using their phones right now anyway, Samsung has that feature and we pay using our phone almost everywhere, and it is an easy thing to do, so we do not carry a card, but the idea of a card is still there and it is not a big deal, because people do need to spend more than what they have to keep the economy going, without that we would have nothing to go on for, and we need this without much trouble.

The idea to stop credit cards existing all together, as in making people only live with the money they have, would crash the economy harder than anything else we have seen so far, this should be something that we can't be doing at all.

the convenience obtained when using a credit card, but from innovation now starting to shift to more practical everything can be held, yes, the times continue to pass, everyone must follow it, there is always a new solution to replace it, although not all of them, but trends always change it.

[Abiky]

My opinion is the opposite of yours.
Progress canэt be stopped and the fate of plastic cards is predetermined - these cards will disappear as a rudiment of the banking system. The world is gradually moving from an offline format to an online one. Every day I see people paying through mobile apps from smartphones. It is almost impossible to see plastic cards on people. Despite some negative aspects mentioned by you (the vulnerability of SIM cards, smartphone OS, limited battery capacity), convenience compensates for all the shortcomings. People "vote" with their actions, choosing convenience, and in this case, a smartphone with a banking app instead of plastic cards is more convenient. Because of individual supporters of plastic cards, the banking system will not leave plastic cards just for their sake. The majority of consumers have made their choice, the banking system will satisfy their demand, and not those like:

Having everything online is part of a plan to control everything. This will give banks and governments more power over people. The inception of CBDCs tells us this. It won't be long before paper money and plastic cards become a thing of the past. Once the transition is complete, we will only have crypto to help protect us against government surveillance and censorship. Bitcoin will be your only choice for true freedom. Assuming it doesn't get compromised in the long run. If it does, we will have Monero to stand at our side.

I think within the next 10-20 years, plastic debit/credit cards will disappear. The new generation is already used to making digital payments. They will be the ones that will lead the revolution. Just you wait and see.

[icalical]

My opinion is the opposite of yours.
Progress canэt be stopped and the fate of plastic cards is predetermined - these cards will disappear as a rudiment of the banking system. The world is gradually moving from an offline format to an online one. Every day I see people paying through mobile apps from smartphones. It is almost impossible to see plastic cards on people. Despite some negative aspects mentioned by you (the vulnerability of SIM cards, smartphone OS, limited battery capacity), convenience compensates for all the shortcomings. People "vote" with their actions, choosing convenience, and in this case, a smartphone with a banking app instead of plastic cards is more convenient. Because of individual supporters of plastic cards, the banking system will not leave plastic cards just for their sake. The majority of consumers have made their choice, the banking system will satisfy their demand, and not those like:

Having everything online is part of a plan to control everything. This will give banks and governments more power over people. The inception of CBDCs tells us this. It won't be long before paper money and plastic cards become a thing of the past. Once the transition is complete, we will only have crypto to help protect us against government surveillance and censorship. Bitcoin will be your only choice for true freedom. Assuming it doesn't get compromised in the long run. If it does, we will have Monero to stand at our side.

I think within the next 10-20 years, plastic debit/credit cards will disappear. The new generation is already used to making digital payments. They will be the ones that will lead the revolution. Just you wait and see.

You make a good point about the digital shift giving banks and governments more power, but it's not so simple. CBDCs might cut down on cash and card use, but this doesn't mean total control. Take Sweden as an example. They're pushing for a cashless society with their e-krona, but they've also made sure people can still get cash to protect their privacy and security. This shows governments might try to balance control and privacy, or else no one will support them, and if the push their agenda there will be chaos.

Bitcoin and Monero offer more privacy sure, but they're not without risks. As CBDCs become more common, governments might crack down harder on them. Look at China - they banned crypto trading in 2021. But you're right, crypto could still be key to keeping financial freedom especially as digital payments grow. We should keep a close eye on how this all plays out.

[yudi09]

the convenience obtained when using a credit card, but from innovation now starting to shift to more practical everything can be held, yes, the times continue to pass, everyone must follow it, there is always a new solution to replace it, although not all of them, but trends always change it.

I don't know the same as what is meant. I can say that convenience has been felt by many people in terms of transactions. The use of credit cards is no longer ignored because they transact, especially fiat currencies, using e-banking. They only need an application on their mobile without having to visit an ATM machine.
This may not be much different from CBDC, although I will not be familiar with CBDC. The proof is that the presence of Bitcoin frees people who transact all over the world without a credit card or having to go to the nearest ATM.

[Abiky]

You make a good point about the digital shift giving banks and governments more power, but it's not so simple. CBDCs might cut down on cash and card use, but this doesn't mean total control. Take Sweden as an example. They're pushing for a cashless society with their e-krona, but they've also made sure people can still get cash to protect their privacy and security. This shows governments might try to balance control and privacy, or else no one will support them, and if the push their agenda there will be chaos.

Bitcoin and Monero offer more privacy sure, but they're not without risks. As CBDCs become more common, governments might crack down harder on them. Look at China - they banned crypto trading in 2021. But you're right, crypto could still be key to keeping financial freedom especially as digital payments grow. We should keep a close eye on how this all plays out.

Yeah, well. Not all governments will curtail people's privacy and freedom. Either way, we can't deny that CBDCs give more power to central banks. They will be able to easily manipulate the economy to their own will. If you've thought credit/debit cards were bad, CBDCs will be worse. I wouldn't worry about this for quite some time. It will be decades before plastic cards (and particularly, paper money) get phased out.

Regardless of crypto/Blockchain tech's popularity, it's still in its infancy. Countries like the US and those in the EU bloc don't even have a CBDC yet. Only China and a few other countries have. I'd expect card issuers like Visa and Mastercard to change their business model in the future. They'll probably earn fees by securing the central bank's digital ledger. Who cares? As long as truly-decentralized cryptocurrencies exist, there should be nothing to worry about.

[jaberwock]

Take Sweden as an example. They're pushing for a cashless society with their e-krona, but they've also made sure people can still get cash to protect their privacy and security. This shows governments might try to balance control and privacy, or else no one will support them, and if the push their agenda there will be chaos.

I do agree that cash will always exist, there is no scenario where cash goes away for good. It just meant to make a world where we use digital payments as much as possible, like a preference thing, but not deal with anything else at all.

Checks were created as the first thing, not the small white blank things that you know, it was a much bigger piece of paper like a declaration type of thing back in the day, and that's how we started this move, and I bet that digital payments will become more common. Phones have this thing, and we can just keep moving away from cash as much as possible. Doesn't mean that we will not have that option available though, if you really want to pay with cash, you will keep having that type of option forever, that will never go away.

[dezoel]

PayPal is an e-money business and also a payment processor of its own. It doesn't need cards to survive.

It baffles me that PayPal is still around and popular.

I mean, I used them for a long time, but that was 10-15 years ago when there weren’t as many options as there are now. In this day and age, their service, with its crazy high fees, seems completely outdated to me, and I can’t imagine a scenario where I would need to use them again. Or maybe something has changed, and they’re not as bad as I remember.

In some industries, it is literally the most common payment method, which is shocking to me as well. I tried to get paid in crypto for doing some tasks once, this was like 2 years ago or so and it was some simple stuff, imagine like airdrops in crypto world but for academia world instead, and the only option they had was paypal, that's it, nothing more.

In the end, I did not get paid, but that's fine it was just a few hours of work and nothing more, I am fine with losing that, they used it on their thesis paper. In the end, we are talking about paypal being way too much used and the fact that people could definitely end up being very easier to handle this and they will be so much simple. In the end they are making a mistake and this is why it's going to be very tough to handle all of this.

We need to fix this and we are going to do fine, it's going to be very good, it's going to be fine and we can make this work, it is going to be full on crypto one day, it will be really good for us when everyone stops using all of these and it will be a good thing for us and we are going to benefit this. It's the smart way to move forward and that would not be all that complicated situation.

[Lanatsa]

Take Sweden as an example. They're pushing for a cashless society with their e-krona, but they've also made sure people can still get cash to protect their privacy and security. This shows governments might try to balance control and privacy, or else no one will support them, and if the push their agenda there will be chaos.

I do agree that cash will always exist, there is no scenario where cash goes away for good. It just meant to make a world where we use digital payments as much as possible, like a preference thing, but not deal with anything else at all.

Checks were created as the first thing, not the small white blank things that you know, it was a much bigger piece of paper like a declaration type of thing back in the day, and that's how we started this move, and I bet that digital payments will become more common. Phones have this thing, and we can just keep moving away from cash as much as possible. Doesn't mean that we will not have that option available though, if you really want to pay with cash, you will keep having that type of option forever, that will never go away.

Its not really that bad on being optimistic on things but be sure that it will really be that somewhat realistic and in speaking about having that FIAT would cease to exist then this is something which is really that impossible on which as long government do exist then these things would exist and its been used since from the beginning of time and there's no way that it could easily be that removed.

Going back into the things which are connected to fiat on which BANKS and these institutions offers up these cards on which it is really that normal since we are living on a digitalized world or simply being that
influenced about on the current technology advancement that we are into. It would really be understandable that cashless payments would really be that possible and this is something that will really be
applied all the time or the option on where common people would really be using. We do already have different options now specially we do have that digital wallets too that you could load up and
just simply pay up something with just scanning a QR code then viola, you had paid it up already.

Doesnt matter about any issues in between crypto or fiat, as long it does give out that kind of convenience into our lives then this what matter the most.It is really just
that there are really those people who are really expecting too much with crypto and thats why having those kind of hopes and wishes about for first to be eradicated on which
i have said earlier or everyone really knows that this cant be possible. It might be that somehow be out of the line but it cant be replaced by something.