The future of the paper money

[Mr.grin]

Governments also prefer digital money over paper, because it's very easy to track transactions. Cash is the main form of money for black market right now, and it's also used for tax evasions and other illegal activities. So, I think people will be reaching towards crypto currencies as governments push people away frosh cash.

using digital money, the government can control the velocity of money and where the money someone will go. yeah I think the government will just love it but is it that could make paper money disappear?

The government cannot control the velocity of money, that is something controlled by the users of fiat, all  of us, they can try but history has showed us they always fail, besides when the government tries to control the velocity of money is because something way worst is happening like big inflation.

paper money will never disappear. I guess it is the perfect form of currency that we use today. the current digital money can not be used at all places, so it will be difficult to use. after all, people have been accustomed to using paper money. so, paper money will continue to be used until any time and will not disappear

[jaysabi]

although in the future will all be completely online, including payment. I'm sure there must be something that requires a paper money for payment, whatever that
I believe that the digital currency will dominate, but it will not make the papers disappear

Paper money will never disappear not in this century, in before the increase in the dominance of internet which makes the use of electronic money as such, it has not even reduce the amount of paper notes being printed by the Central Bank. Paper money has being with us for ages and centuries and for any kind of currency to replace it means it has to be around if not that long then close to that or else, the worse that will happen is that they both co-exist.

It may not have reduces the number of paper notes in existence, but by share of how much money there is (physical vs. digital), it is certainly falling every year. In Oct. 2016, there was only 1.48 trillion physical USD in existence (https://www.federalreserve.gov/faqs/currency_12773.htm), for an economy with a GDP of over $17 trillion dollars. This represents that there is far, far more digital money than physical money in existence, and the proportion of physical to digital will continue to fall as the economy outgrows the pace of printing physical notes.

[jaysabi]

Governments also prefer digital money over paper, because it's very easy to track transactions. Cash is the main form of money for black market right now, and it's also used for tax evasions and other illegal activities. So, I think people will be reaching towards crypto currencies as governments push people away frosh cash.

using digital money, the government can control the velocity of money and where the money someone will go. yeah I think the government will just love it but is it that could make paper money disappear?

The government cannot control the velocity of money, that is something controlled by the users of fiat, all  of us, they can try but history has showed us they always fail, besides when the government tries to control the velocity of money is because something way worst is happening like big inflation.

The central bank does indeed control the pace of money creation through the use of interest rates. The central bank prints physical notes, but more money is created through fractional reserve banking, which is mostly digital. By raising the interest rates banks pay to the federal reserve, they can control the rate at which the banks are able to create new money through fractional reserve banking. By lowering the rates, the opposite happens.

[StevensonCarl]

It will be less more used but still will stay existing because we still need it for some payments and some countries cannot go fully digital.

[deisik]

Governments also prefer digital money over paper, because it's very easy to track transactions. Cash is the main form of money for black market right now, and it's also used for tax evasions and other illegal activities. So, I think people will be reaching towards crypto currencies as governments push people away frosh cash.

using digital money, the government can control the velocity of money and where the money someone will go. yeah I think the government will just love it but is it that could make paper money disappear?

The government cannot control the velocity of money, that is something controlled by the users of fiat, all  of us, they can try but history has showed us they always fail, besides when the government tries to control the velocity of money is because something way worst is happening like big inflation.

The central bank does indeed control the pace of money creation through the use of interest rates. The central bank prints physical notes, but more money is created through fractional reserve banking, which is mostly digital. By raising the interest rates banks pay to the federal reserve, they can control the rate at which the banks are able to create new money through fractional reserve banking. By lowering the rates, the opposite happens

You seem to be confusing something here

Obviously, you refer to reserve requirements which are the amounts that commercial banks are obliged to hold at the Fed (if we are talking about the US). The interest rates (federal funds rates) you refer to are the rates at which banks offer their excess reserve balances as short term (typically overnight) loans to other banks which fall short for money, for example, due to cash gaps. Moreover, in some countries (e.g. in Canada) banks don't have to keep any reserves at the central bank, i.e. their reserve requirements are equal to 0

[Darwintas]

The future of the paper money is not so good because of the fact that everything will be digital in the future all over the world, paper money will never disappear fully but it will partly.

[AleSergio]

In the nearest future i think paper money will disappear, because banks are doing everything for us to pay with cards, not with cash. The same goes for cryptocurrencies, online payments for the bills and etc. Why the heck you need a bunch of paper money if you have a card or internet, which you can use everywhere nowadays

[Attaman]

Paper money is normal a good pay method but everything is indeed getting more digital and due to that we can say that it will disappear in about 20 years from now without any doubts.

[mornabo]

Paper money is normal a good pay method but everything is indeed getting more digital and due to that we can say that it will disappear in about 20 years from now without any doubts.

yeah something obsolete will be replaced with something new, more sophisticated, I know that paper money is very easy to use, but the digital money will be easier and will replace it in the future

[millgates]

Paper money is normal a good pay method but everything is indeed getting more digital and due to that we can say that it will disappear in about 20 years from now without any doubts.

yeah something obsolete will be replaced with something new, more sophisticated, I know that paper money is very easy to use, but the digital money will be easier and will replace it in the future

I agree, thats because bitcoin is better than fiat. For me bitcoin is as worth as gold. Some people is get saturated of using fiat then they convert it into gold or bitcoin. Bitcoin brings so many adavntage for us such no inflation.

[Bitcotalk]

Paper money is normal a good pay method but everything is indeed getting more digital and due to that we can say that it will disappear in about 20 years from now without any doubts.

yeah something obsolete will be replaced with something new, more sophisticated, I know that paper money is very easy to use, but the digital money will be easier and will replace it in the future

paper money will remain till last and it will not disappear even after 20 years but the use of paper money will be reduced much and maybe from some hands it disappear but will not escape from market and the use of bitcoin will be everywhere which is sure to happen.

[South Park]

Governments also prefer digital money over paper, because it's very easy to track transactions. Cash is the main form of money for black market right now, and it's also used for tax evasions and other illegal activities. So, I think people will be reaching towards crypto currencies as governments push people away frosh cash.

using digital money, the government can control the velocity of money and where the money someone will go. yeah I think the government will just love it but is it that could make paper money disappear?

The government cannot control the velocity of money, that is something controlled by the users of fiat, all  of us, they can try but history has showed us they always fail, besides when the government tries to control the velocity of money is because something way worst is happening like big inflation.

The central bank does indeed control the pace of money creation through the use of interest rates. The central bank prints physical notes, but more money is created through fractional reserve banking, which is mostly digital. By raising the interest rates banks pay to the federal reserve, they can control the rate at which the banks are able to create new money through fractional reserve banking. By lowering the rates, the opposite happens.

That is a mistake, that is not money velocity, that is money supply a different term, money velocity refers to how fast money changes hands, and that is not controlled by the government, when the velocity of money is very fast it means that no one wants to hold fiat for long periods of time and if that is happening then inflation must be out of control.

[acroman08]

Paper money is normal a good pay method but everything is indeed getting more digital and due to that we can say that it will disappear in about 20 years from now without any doubts.

yeah something obsolete will be replaced with something new, more sophisticated, I know that paper money is very easy to use, but the digital money will be easier and will replace it in the future

I agree, thats because bitcoin is better than fiat. For me bitcoin is as worth as gold. Some people is get saturated of using fiat then they convert it into gold or bitcoin. Bitcoin brings so many adavntage for us such no inflation.

I hope you realize that if the paper money disappears doesn't mean bitcoin will replace it. and IF paper money did disappear governments will just create their own digital currency which they can control just like paper money.

[Hatuferu]

Paper money is normal a good pay method but everything is indeed getting more digital and due to that we can say that it will disappear in about 20 years from now without any doubts.

yeah something obsolete will be replaced with something new, more sophisticated, I know that paper money is very easy to use, but the digital money will be easier and will replace it in the future

I agree, thats because bitcoin is better than fiat. For me bitcoin is as worth as gold. Some people is get saturated of using fiat then they convert it into gold or bitcoin. Bitcoin brings so many adavntage for us such no inflation.

I hope you realize that if the paper money disappears doesn't mean bitcoin will replace it. and IF paper money did disappear governments will just create their own digital currency which they can control just like paper money.

Everything is under the control of the government, if ordinary people can make a bitcoin like sytem, the government can easily make the same. Digital currency might be the trend in the future but I doubt if that will eliminate the popularity of paper money, it's still convenient to use paper money.

[marcoman22]

Paper money would still survive. In india also, same measures are taken to convert people to cashless transactions. They have banned most notes and it has caused lots of inconveniences to people. Most people know only about paper money. Security is also a big issue in digital transactions as you lots of news coming about credit card passwords stolen. Paper money would be in existence but its usage will be much less compared to current situation.

[jossiel]

Paper money would still survive. In india also, same measures are taken to convert people to cashless transactions. They have banned most notes and it has caused lots of inconveniences to people. Most people know only about paper money. Security is also a big issue in digital transactions as you lots of news coming about credit card passwords stolen. Paper money would be in existence but its usage will be much less compared to current situation.

That's why paper money will always be important and what happened to India upon banning their rs' did really made a lot of inconvenience.

I feel sorry for those people there. Security is really not guaranteed in digital transactions and so with digital wallets because a lot of cases that many invaders manage to monitor those people.

And it is hard to make yourself secured from it as long as you are connected in internet. Everyone is watching you.

There will be always a need for paper money.

[Kasabus]

Paper money would still survive. In india also, same measures are taken to convert people to cashless transactions. They have banned most notes and it has caused lots of inconveniences to people. Most people know only about paper money. Security is also a big issue in digital transactions as you lots of news coming about credit card passwords stolen. Paper money would be in existence but its usage will be much less compared to current situation.

That's why paper money will always be important and what happened to India upon banning their rs' did really made a lot of inconvenience.

I feel sorry for those people there. Security is really not guaranteed in digital transactions and so with digital wallets because a lot of cases that many invaders manage to monitor those people.

And it is hard to make yourself secured from it as long as you are connected in internet. Everyone is watching you.

There will be always a need for paper money.

There's no perfect method or system that we can use where we can avoid others from watching us, what you are pointing is only the negative things about online transaction but if you could see how many crimes committed in a day due to stealing money and robbers rob banks to get deposits you can say that it's more safer with online transaction. Now, we have bitcoin that we can be anonymous, hence it makes it more safer. Paper money is convenient but not safe enough though.

[LovelyPrey]

Well, ultimately, it all depends on the adoption of bitcoin. But I don't think that paper money will be diminished anytime soon. It's true that we are living in a fast-paced and digital world, but technology itself has some flaws and we want to make sure that we have a fallback in case digital currency takes its place in society. Because I'm sure that people will always want something that they can hold on to.

If a lot of people start using and promoting it, the end of paper money is inevitable but if the public leans the other way, then it will never be possible. It's just a matter of which one is more accessible and easy to use for the public.

On top of that, many people already are used to trusting banks, so it will be hard for them to trust technology in order to switch to bitcoin. Many people are afraid of hacks, scams and other security issues. This is one of the major issues to overcome.

[gabmen]

Well, ultimately, it all depends on the adoption of bitcoin. But I don't think that paper money will be diminished anytime soon. It's true that we are living in a fast-paced and digital world, but technology itself has some flaws and we want to make sure that we have a fallback in case digital currency takes its place in society. Because I'm sure that people will always want something that they can hold on to.

If a lot of people start using and promoting it, the end of paper money is inevitable but if the public leans the other way, then it will never be possible. It's just a matter of which one is more accessible and easy to use for the public.

On top of that, many people already are used to trusting banks, so it will be hard for them to trust technology in order to switch to bitcoin. Many people are afraid of hacks, scams and other security issues. This is one of the major issues to overcome.

You're right there and digital currency mainly relies on online access and connection which not only is unavailable in some parts of the world, but is prone to sabotage and manipulation. A lot of people still feel safer if they hols their money physically in their hands

[Rosberger]

Paper money is normal a good pay method but everything is indeed getting more digital and due to that we can say that it will disappear in about 20 years from now without any doubts.

Yes we still have to see what is gonna happen of course but most likely it will slowly disappear over the years that are coming.