The future of the paper money

[RealBitcoin]

Basically the future of paper money is obvious. It will be banned. The elite is already preparing to ban cash, so that they can control better the 3 other inflation mechanisms.

As I said in some other post, banning what personally affects the majority of population may have unanticipated consequences. They may try to gradually make paper money (cash) irrelevant in the long term, but not outright ban it...

Guess what happens if gov't decides to ban food

It is gradual sure, but it`s been already going on for 30 years, they are first banning large transactions, then teaching the public to use credit cards, and slowly train the sheeple to switch to digital alternative from cash.

At some point they will just come and outright ban it. And if the old guys wont be prepared to learn to use the digital alternative, they will be fucked.

I can already see signs of it that probably in the next 5-10 years they will ban it.

[operrajunk74]

I think paper money will remain in future also but there are many chances that their use will be decreased. Nowdays everyone is using plastic money like debit cards and credit cards so there is less use of traditional paper money. People are also using more and more online methods for payments of bills and shopping and now due to the introduction of digital money there will be more decrease in the use of paper money but it will remain in the economy.

[flock123]

paper money will always be used, because paper money is an evolution of coins, it is thought 

[HeroCat]

Paper money will lasts at least next 100 years or so  There are a lot of people using paper money in daily life 

[DooMAD]

Unless I missed it, there doesn't appear to be a link in the thread to the article that caused it, so here it is:
http://www.telegraph.co.uk/finance/bank-of-england/11874061/Negative-interest-rates-could-be-necessary-to-protect-UK-economy-says-Bank-of-England-chief-economist.html

If there were significant signs of such a move taking place, I'd be moving out of fiat pretty sharpish and would be strongly encouraging others to do the same.  An "economy" where every single transaction has to go through an archaic financial institution would be lunacy.  They can't cope responsibly with the money they already have control over, I don't see the sense in them having total and complete control over all of it.  If they did, they would simply be presiding over a collapse that comes sooner rather than later.  Count me out.

[eternalgloom]

Yeah, governments would like to see cash banned in favour of electronic payments, but I don't think the people would accept it just yet.
Plus I could see some issues with that, security comes to mind...

[nitammys]

Paper money already died. People has switched over to plastic cards long back itself. Now it's time to make a movement towards digital money, bitcoin. 

[Amanda2015]

Andrew Haldane said one solution would be for the Bank of England to issue a state-backed digital currency based on bitcoin. Supporting this initiative would be a negative interest rate levied on paper currency relative to the digital currency, with these measures do you think there is more possibilities that sometime:

Paper money will be banned entirely?
How long do you think that happens?
would it work?
What security and privacy risks would it raise?
And how would public and privately issued monies interact?

For the developed and developing countries, maybe one day it will.
For the developed countries, I think it will take 20-50 years, and for developing countries, 40-50 years.
It may raise risks such as total control of electric currency system by government, when crisis happens, people can't control any assets in their hands but has to obey the rules of government banks.
However, I think it is a good way to strengthening the governance of corruption.

[Triple]

Paper money already died. People has switched over to plastic cards long back itself. Now it's time to make a movement towards digital money, bitcoin. 

Hasn't died at all. Sure we've moved to credit cards and such, but in the end, that's all backed up by paper money.

[Ceizer54]

Paper money would never die not untill everyone is educated enough to understand the benefits and use of cryptocurrencies
Another reason is Majority of the people like physical money more because they want something they can keep with themselves in pockets and these people don't know such thing like bitcoin exists...If we need to remove paper money completely then i guess its only possible if official money is replaced by government to cryptocoins and i wonder that will never happen.

[acroman08]

Andrew Haldane said one solution would be for the Bank of England to issue a state-backed digital currency based on bitcoin. Supporting this initiative would be a negative interest rate levied on paper currency relative to the digital currency, with these measures do you think there is more possibilities that sometime:

Paper money will be banned entirely?
How long do you think that happens?
would it work?
What security and privacy risks would it raise?
And how would public and privately issued monies interact?

Im not sure banning paper money will work, goverment doesnt want
Lose control over the currency they're holding. And im sure
Many people will be againts it, and it will be very risky.

[novadragon]

Paper money will lasts at least next 100 years or so  There are a lot of people using paper money in daily life 

that is very correct
I guess if you had to change banknotes into coins

[RealBitcoin]

Paper money will lasts at least next 100 years or so  There are a lot of people using paper money in daily life 

The blacksmiths also were very confident @WW2 that their jobs will be secured forever, and that horse carriages + horse shoe maintenance will forever.

To bad they were fucked in the ass 5 years later, in the 1950's when cars take over the world, and they lost their jobs instantly, forever...

[Mickeyb]

Andrew Haldane said one solution would be for the Bank of England to issue a state-backed digital currency based on bitcoin. Supporting this initiative would be a negative interest rate levied on paper currency relative to the digital currency, with these measures do you think there is more possibilities that sometime:

Paper money will be banned entirely?
How long do you think that happens?
would it work?
What security and privacy risks would it raise?
And how would public and privately issued monies interact?

Im not sure banning paper money will work, goverment doesnt want
Lose control over the currency they're holding. And im sure
Many people will be againts it, and it will be very risky.

They are not talking about banning paper money altogether, they are just saying that using paper money will be more expensive than using some state issued digital currency. Governments will do this on purpose because it's cheaper to just maintain centralized blockchain and centralized blockchain tokens can be more easily controlled by the governments than paper money.

[DooMAD]

They are not talking about banning paper money altogether, they are just saying that using paper money will be more expensive than using some state issued digital currency. Governments will do this on purpose because it's cheaper to just maintain centralized blockchain and centralized blockchain tokens can be more easily controlled by the governments than paper money.

I hope you're right, but that's not the impression I got.

Traditionally policymakers have resisted cutting rates below zero because when the returns on savings fall into negative territory, it encourages people to take their savings out of the bank and hoard them in cash.

This could slow, rather than boost, the economy. It would be possible to get around the problem of hoarding by abolishing cash, Mr Haldane said

It sounds like he's saying that people will naturally try to withdraw their savings from the bank in cash form, which would in turn limit the amount the banks can print out of thin air using fractional reserve.  So in order to avoid that, simply abolish cash.  Force everyone to use financial intermediaries to "save" (read: destroy once and for all) the economy.  

On the plus side, Haldane is just one person at the BoE and clearly isn't making all the decisions, as it looks as though they're still moving towards replacing existing notes with the new polymer variety.  It says they're aiming to have the £5 note in circulation by 2016, so I doubt they'd be doing that if they were planning to phase out cash in the immediate future.

[SerenaL]

I think governments will try to push paper money for as long as they can. Without it they are pretty much powerless.

[addy boy]

i domt think bitcoin or any crypto currency can ever became a future economical currency or if the topic is saying about future paper money then we need something like bitcoin but with stable market prices.

[EggShells]

I think Andrew Haldane was talking about issuing a digital fiat currency, not a cryto- or crypto-backed currency.  (The latter would be revolutionary coming from a member of the establishment.)

Remember, the whole idea is being able to drive interest rates negative (for which the stated goal is to stimulate the economy -- while the real goal is to keep the modern world system alive.)  Banning cash (paper money) is only a necessary step to prepare for negative rates.  The authorities are basically indifferent between paper vs. electronic money, since both are fiat.

It would be a big power grab.

But I think there'd be practical difficulties.  When they ban cash, they also must ban gold, silver, and Bitcoin, since people would flock to these hard assets when interest rates turn negative.  This would be easier said than done, since countries would have to co-operate, and American power is waning while global awareness of monetary abuse is growing.

Perhaps, a very horrific terrorist act would give authorities the excuse and the public support to ban all those assets (since gold, silver and Bitcoin could also be used to finance terrorism.)

Maybe, the final outcome will depend on what happens first, a major terrorist attack, or the decline of the US beyond a certain point (through minor cycles of US strength going up and down, but trending down.)

[Sir_lagsalot]

I like paper money. I like to feel the buying power in my hands :p Bitcoin makes me feel like a robot. I am not saying paper money is better tho.

I feel more powerful with bitcoin, as I have the reassurance that there are only 21 million of these coins, and they will most probably go up in price.

[NorrisK]

Not sure if this has already been posted, but Sweden is already on the way to get rid of cash..

https://www.credit-suisse.com/nl/en/news-and-expertise/economy/articles/news-and-expertise/2015/03/en/sweden-we-dont-accept-cash.html

Appearently they were the first to introduce it in Europe, and they are now the first to start to get rid of it.