The future of the paper money

[HasHe]

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?

Paper money would still exist.Even today,there are more people around the world who don't even have a debit or credit card and don't know about digital transactions.They consider only paper money as the real money.So,it would be not possible to ban paper money completely.

[jameshowlett]

I think paper money has no future. probably it will be replaced by something worth such as gold and something has a lot of advantage such us bitcoin.

NO buddy. You can not deny the benefits of paper money no matter how much you hate it. Paper money has existed for many years and although technology helps us a lot, we still need to use paper money for instant transactions and micro transactions. If you are still ignorant, you can try to throw all paper money and see whether you can live in this world

[matuson]

I think paper money has no future. probably it will be replaced by something worth such as gold and something has a lot of advantage such us bitcoin.

NO buddy. You can not deny the benefits of paper money no matter how much you hate it. Paper money has existed for many years and although technology helps us a lot, we still need to use paper money for instant transactions and micro transactions. If you are still ignorant, you can try to throw all paper money and see whether you can live in this world

It depends in what country. In Germany you can easily live without paper money. Unless of course you buy drugs then you need cash. In more backward countries will have Fiat. Electronic money will bring more benefit to the state than paper, so in 30-50 years cash will be gone.

[kidmodo]

Era is now the era of technology, where the physical form is not needed, all using cards or virtual money. Even bitcoin there is no physical form that we can see, we can only see the numbers only. Banknotes may only last 50-100 years ahead after it will not be useful

[Lalafell]

In my opinion paper money will be the same in soon as of now. Bitcoin cannot replace the fiat because paper money is our traditional mode of payment so. Even though we were in new era... The era of technology still paper money will never be gone.

[frowsiter]

That will never happen because government will loose it's control over the assets which it regulate for us. They won't able to put taxes and charges on the stuff around us and they will go out of business. Haha. Or they will start regulations on bitcoin. Or virtual currency which would be rather bad. As regulations will bring restrictions of using bitcoin freely and it would be same thing as paper money today. We won't be able to generate any more profits.

[babsalt1975]

As much as we appreciate the fact that technology is developing very fast, there are some things that we can not do without. Governments or economies need some sort of back up to control their currencies. For instance, most central banks are using Gold as a back up for their currencies in the case of inflation. They need to cap their currencies to avoid excessive inflation and therefore control their currencies. Therefore, with the new technology and introduction of crypt-currencies, economies need an alternative currency to back up their own. Depending entirely on the crypt-currency can cripple an economy in a very bad way. In opinion, paper money is here to stay even if we get other forms of currencies.

[HammaSan]

I think the in the future the paper money should disappear. Imagine the cost of the whole process of manufacturing and distributing money today. Surely this is going to change, just as the salt has already been used as currency and in time has disappeared. With technology developing so rapidly in a few years it will no longer sense the use of paper money. I, I currently use very little paper money. I use credit card much more. A few years ago I did not even think about it.

[sashamoe]

The paper money I think will still be used in the future although it may be reduced its use, paper money may only be used in small transactions and lots of small transactions that we use in everyday life, so I think the paper money will still continue to be useful

[MMA]

The paper money I think will still be used in the future although it may be reduced its use, paper money may only be used in small transactions and lots of small transactions that we use in everyday life, so I think the paper money will still continue to be useful

yes paper money will continue for a long long time, currently there are no chances that paper money will vanish. i think it will continue even after accepting bitcoin by majority of the people of the world. they will be using both the option according to their needs and facilities. although the new generation is giving more preference to bitcoin, but still they will also continue using bitcoin.

[lazyturtle]

Pretty hard to say how it all will pan out in the future, but i know that here in my home country (Sweden), the banks are making it more and more difficult to even deposit paper cash anymore...

For example, i sold a car recently and acctually got paid in bitcoin (azum) for about 9500$ dollars. I later sold those bitcoins to Swedish kronor(SEK) and put them in my bank account the digital route.
This all went smooth and fine, no problem from the bank at all.

Fast forward a week, i walk in with about 1700$ cash in paper money, trying to get it in my account, absolutly impossible... Their reason being that it could come from criminal acitivity witch is so contradicting as the bitcoins i sold for a much bigger ammount i never got a question about....

Just saying that just until recently putting money in the bank here in sweden was pretty easy. Today old people that have saved paper money for years can´t get it in the bank, because the bank want a report on every single SEK/USD to accept it. A Swedish newspaper recently wrote about this as a old man could not get money he saved in his attic whole his life in cash, because he could not prove where every Krona came from...

I dont know if these two things are connected, but it feels weird. Money basically is just digital code anyways now, a full implementation of crypto currencies does not seem to far away IMO!

[jaysabi]

Paper money's future still be the same only that it will be lessen in usage due to bitcoin digital currency is the mostly used currency in the future years to come. Hopefully this will be happening so that bitcoin price will be more stable in the marketplace just like the fiat money currency money. Bitcoin that time wil be the most profitable investment to have amd paper money will be reduced in spending and exchanges but it will not vanish in banking because offline using still remains like in local wet markets and those who doesn't knew how to use the digital world of internet transactions, because bitcoin needs to be accessed through online network.

Bitcoin isn't going to affect physical currency much. The ratio of people using Bitcoin to conduct commerce vs. using it to gamble, either by buying speculatively or using it to skirt casino or sport book restrictions, is extremely small. The thing that is going to diminish physical fiat's use is digital fiat. Most transactions are already digital, and easier than blockchain technology

Well, now I seem to understand the difference between your reasoning and mine

In short, you don't look deeper besides what's on the surface taking into account only direct effects, and thus jump to premature conclusions. This post of yours is a perfect example of that. You basically state that Bitcoin cannot affect fiat since the former is not used in conducting commerce (i.e. Bitcoin is not used as a currency). This point itself can hardly be challenged since it is a fact of life (with which I totally agree, just in case). But this is not the only route via which Bitcoin can and does in fact affect fiat (physical or digital). You forget that fiat itself is not only about commerce and being a currency. It is also a speculative asset on its own and a store of value (another fact of life), and this is exactly where Bitcoin hits hardest. But since fiat here and fiat there it is still the same fiat (both physical and digital), Bitcoin necessarily affects them both even if indirectly and even if Bitcoin itself is not used to conduct real business as you state

There you go again claiming someone who doesn't see something the same as you has a malinformed opinion. Just try sticking to your ideas and don't pretend you have a grand insight into other's minds, because some of your ideas are quite uninformed. Claiming that the USD is a speculative asset is ridiculous

You seem to be more and more detached from reality

Any fiat currency is a speculative asset by definition. I guess George Soros would be greatly surprised to hear that claim after he (with a tightly knit group of speculators) had basically put the Bank of England to its knees when he shorted the British pound and earned 1B dollars within a single day. Yeah, I know that GBP is not USD, but I guess you won't start claiming the US dollar is somehow different in this regard. I guess you are the only one here who is "quite uninformed". You may want to learn more about currency carry-trade in particular and Forex in general

All you do is spout opinions without substantiation. Explain how the USD is a speculative asset, and be sure to include an argument that acknowledges the fact that it's generally a more stable currency than any other fiat currency. The definition of financial speculation is "the act of trading in an asset or conducting a financial transaction that has a significant risk of losing most or all of the initial outlay with the expectation of a substantial gain." If your economy is based in USD, the USD cannot be a speculative asset because that's the default currency, not an active investment decision to chase returns that you've traded in to. Thus, as is plainly evident, "any fiat currency is not a speculative asset by definition."

[fanbeila]

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?

Paper money would exist.It cannot be completely banned.In india,the government tried to convert people to digital transactions and demonitized higher value notes,but it failed to deliver the expected results.

[Himanshu111]

I don't think paper money is facing any competition from Bitcoin as government is not interested in circulation of a currency they can not control and regulate. Transaction of Bitcoin also charge a high fees which makes its use impossible for small transactions.

[mirakal]

I don't think paper money is facing any competition from Bitcoin as government is not interested in circulation of a currency they can not control and regulate. Transaction of Bitcoin also charge a high fees which makes its use impossible for small transactions.

Absolutely, the government has the power to freeze the exchange sites to stop the circulation of bitcoin, without exchanges bitcoin is nothing and if it will be declared as illegal there is nothing we can do. Paper money will remain as it is the most simplest form of currency where we do not need to go online to spend, majority if not all the people can benefit with paper money but with bitcoin it's only a little portion and not even the poor people.

[rainingbitcoins]

The future of paper money is safe as it is more popular then bitcoins and even the users of paper money are much higher then bitcoins and I don't see any competition from bitcoins to paper money at a moment.

[whaawh]

The future of paper money is safe as it is more popular then bitcoins and even the users of paper money are much higher then bitcoins and I don't see any competition from bitcoins to paper money at a moment.

I understand that Bitcoin is gaining popularity among users of the network, but we must understand that Bitcoin very rarely will be able to replace simple money. Not to mention the paper money. There are places where people live, where even bank cards do not work. People today still need paper money, and they will use them for a very long time.

[Snow Angel]

The worst problem for implementing bitcoin on a large scale would be goverment because bitcoin is something that they can not control. It all depends what will be a decision of a particular country.

[King Sastro]

The future of paper money is safe as it is more popular then bitcoins and even the users of paper money are much higher then bitcoins and I don't see any competition from bitcoins to paper money at a moment.

Yes agree, this is because until whenever the State will protect the paper money in fully, although the bitcoin as second currency but will not reduce the demand for paper money.

[Schuyler]

The future of paper money is safe as it is more popular then bitcoins and even the users of paper money are much higher then bitcoins and I don't see any competition from bitcoins to paper money at a moment.

The paper money is here to stay, because it is still largely what over 90% of the world's population still use for their everyday transactions. Even in the advanced age of digitalization, more paper money are being printed by governments over the last five years. It still feels good to have something you can touch and feel as form of payment. Bet I am getting old and feeling a bit sentimental.