Should Fiat currencies still exist or be replaced by Crypto Currencies?

[Kakmakr]

So, we are moving into a new era where Fiat currencies are getting some competition from Crypto currencies and multiple other payment methods. People are simply not interested in using cash anymore, because cashless payment options are more efficient and also more convenient. < Debit & Credit cards / Crypto currencies / Gift cards / E-Wallets / Cheque / PayPal etc. >

So with the endless alternative payment options available, cash payments are slowly being replaced by more practical and convenient payment options.

Is there still a need for Cash <Fiat currencies> in this evolving world?

I can think of several scenarios where Fiat currencies are still needed, namely :

1. Where there are no electricity infrastructure.
2. Where it is not safe to carry expensive smart phones.
3. Where there are no access to the Internet.
4. Where there are a high number of illiterate people.
5. Where there are people with disabilities that presents challenges for electronic payment options.

I personally think there are still huge challenges that needs to be addressed, before electronic payment options can permanently replace Fiat currencies and that alternative payment options can co-exist with Fiat currencies.

Please give your opinion and participate in the Poll.  

[bittraffic]

We need the coins pegged in fiat. Some may not consider it crypto but that's I guess we are going. We still need that debit and credit card and all the rest since the government can't just take them out at once. We still need these fiat, I don't know for how long but probably around 20 years. I think there are cities who already practices paperless transactions and all they do are just credit, debit cards and so on. I think the city is in Swiss. The transition to crypto will take long.

[ivakar]

fiats ( that mean cash money as well) give people flexibility. cash is very secure payment method.
so in fact it is more secure in some ways then crypto
the cost of transaction is zero, delay of transaction is zero. but crypto + fiat is good combination for today's world
and, imo, it should stay like this  

[hatshepsut93]

You are mixing terms "cash" and "fiat" in many places in your posts, it makes it really hard to properly answer your question. Cash means physical money, fiat means government-issued money not backed by anything.

Should cash exist? Yes, because electronic payment methods rely on the Internet, electricity and special devices, and those things can't be always available, especially in remote places.

Should fiat exist? Crypto is technologically incapable of handling all fiat's transactions in the world right now, even with Lightning Network. So, it's kinda pointless to discuss whether crypto should replace fiat, until it's actually possible to do so.

[lionheart78]

I also believe that there is no need to phase-out fiat currency.  As the given example,

Where there are no access to the Internet.

internet cannot conquer every corner of the world so there will always be a place where traditional mode of payment is needed.  In cases where electricity isn't available, it would be harder if we go back to barter mode of trading and using fiat currency is way more comfortable than carrying tons of goods for trading.  So instead of competition of which is better, people should learn how to synergize the effect of these two currency for the benefit of human economy.

[Kakmakr]

You are mixing terms "cash" and "fiat" in many places in your posts, it makes it really hard to properly answer your question. Cash means physical money, fiat means government-issued money not backed by anything.

Should cash exist? Yes, because electronic payment methods rely on the Internet, electricity and special devices, and those things can't be always available, especially in remote places.

Should fiat exist? Crypto is technologically incapable of handling all fiat's transactions in the world right now, even with Lightning Network. So, it's kinda pointless to discuss whether crypto should replace fiat, until it's actually possible to do so.

I use the word Fiat because it has a very close link to cash issued by governments. The word “fiat” is Latin in origin and refers to an arbitrary order issued by a government or other authoritative figure. When applied to paper money, fiat currency refers to the scary notion that our dollar has value only because the government says it does. <-- Source : https://americanmonetaryassociation.org/why-the-dollar-is-called-a-fiat-currency/

So let's not split hairs on the actual difference between the two, because it can be any physical currency that are issued and backed by the respective governments. 

Let's just focus on the discussion and question if these currencies should be replaced. 

[metallica101]

It depends on the state in which crypto will be once it gets regulated and adopted. If the prices stabilize, then maybe there won't be the need for fiat anymore. Provided, of course, that other issues you have mentioned get addressed and possibly dealt with. But still, i think that if it does happen, it will be in the future, perhaps 50 or more years in the future, provided that crypto development doesn't stop or slow down to a crawl.

[avikz]

We are indeed moving to a new era of digital money and transactions but we haven't yet reached a stage where physical cash can be eradicated. See the stats below,

Internal access: it is estimated that around 3 billion people have access to internet today, which is roughly 42% of world population. No internet means no digital payments.

Ref: https://www.invespcro.com/blog/world-population-online/
 
So if I overlook the other factors like computer literacy rate etc. The infrastructure needed for complete eradication of physical cash is not present. Yes, people from urban areas are using digital payments in their daily life but that's not the case for everyone!

The positive is that the situation is changing slowly and surely! But more time is needed before we see a holistic change!

[Wexnident]

So, we are moving into a new era where Fiat currencies are getting some competition from Crypto currencies and multiple other payment methods. People are simply not interested in using cash anymore, because cashless payment options are more efficient and also more convenient. < Debit & Credit cards / Crypto currencies / Gift cards / E-Wallets / Cheque / PayPal etc. >

So with the endless alternative payment options available, cash payments are slowly being replaced by more practical and convenient payment options.

Is there still a need for Cash <Fiat currencies> in this evolving world?

I can think of several scenarios where Fiat currencies are still needed, namely :

1. Where there are no electricity infrastructure.
2. Where it is not safe to carry expensive smart phones.
3. Where there are no access to the Internet.
4. Where there are a high number of illiterate people.
5. Where there are people with disabilities that presents challenges for electronic payment options.

I personally think there are still huge challenges that needs to be addressed, before electronic payment options can permanently replace Fiat currencies and that alternative payment options can co-exist with Fiat currencies.

Please give your opinion and participate in the Poll.  

It is still needed to be fair. Crypto can potentially usurp the role of fiat in the future, but that is still very far. Crypto at the moment is just at its infancy. Besides, government and crypto still dont meet eye to eye at the moment so removal of fiat currencies would cause major mayhem across the globe.
Plus, letting crypto take the role of fiat with how most people are still ignorant of its existence is pretty much impossible. Influence of crypto should slowly spread over the globe and only then can we start the improvementsbin terms of its role as a virtual currency.
As you said, issues still plague the usage of crypto as a fiat currency but that should be patched up in the future with how technology keeps on evolving.
Long story short, I believe it can, but not now. So at the moment, both should co-exist and let each other prosper.

[Kakmakr]

So, we are moving into a new era where Fiat currencies are getting some competition from Crypto currencies and multiple other payment methods. People are simply not interested in using cash anymore, because cashless payment options are more efficient and also more convenient. < Debit & Credit cards / Crypto currencies / Gift cards / E-Wallets / Cheque / PayPal etc. >

So with the endless alternative payment options available, cash payments are slowly being replaced by more practical and convenient payment options.

Is there still a need for Cash <Fiat currencies> in this evolving world?

I can think of several scenarios where Fiat currencies are still needed, namely :

1. Where there are no electricity infrastructure.
2. Where it is not safe to carry expensive smart phones.
3. Where there are no access to the Internet.
4. Where there are a high number of illiterate people.
5. Where there are people with disabilities that presents challenges for electronic payment options.

I personally think there are still huge challenges that needs to be addressed, before electronic payment options can permanently replace Fiat currencies and that alternative payment options can co-exist with Fiat currencies.

Please give your opinion and participate in the Poll.  

It is still needed to be fair. Crypto can potentially usurp the role of fiat in the future, but that is still very far. Crypto at the moment is just at its infancy. Besides, government and crypto still dont meet eye to eye at the moment so removal of fiat currencies would cause major mayhem across the globe.
Plus, letting crypto take the role of fiat with how most people are still ignorant of its existence is pretty much impossible. Influence of crypto should slowly spread over the globe and only then can we start the improvementsbin terms of its role as a virtual currency.
As you said, issues still plague the usage of crypto as a fiat currency but that should be patched up in the future with how technology keeps on evolving.
Long story short, I believe it can, but not now. So at the moment, both should co-exist and let each other prosper.

I think I left out the government perception of Crypto currencies and it is worth a mention too.    Governments need control over reserve currencies and they have control over the supply of Fiat currencies, so they will be hesitant to move to Crypto currencies, if there is a possibility that they might lose control over their reserve currencies.

Their solution seem to be the development of centralized Blockchain based technologies, where they are given full control over the technology. <The so-called GovCoins>

In the future, we might see the digitization of Fiat currencies, made possible by the Blockchain technology. 

[figmentofmyass]

I can think of several scenarios where Fiat currencies are still needed, namely :

1. Where there are no electricity infrastructure.
2. Where it is not safe to carry expensive smart phones.
3. Where there are no access to the Internet.
4. Where there are a high number of illiterate people.
5. Where there are people with disabilities that presents challenges for electronic payment options.

I personally think there are still huge challenges that needs to be addressed, before electronic payment options can permanently replace Fiat currencies and that alternative payment options can co-exist with Fiat currencies.

let's not put the cart before the horse. cryptocurrency needs to actually go mainstream first---and not just as a speculative investment to be hoarded. like hatshepsut93 points out, bitcoin and lightning can't begin to handle all the world's transactions. neither can other blockchains, which are either less scalable or will suffer from the same inefficiencies as bitcoin.

everybody should just get used to cryptocurrencies coexisting with fiat, which isn't going anywhere as long as nation states still exist. i sure hope physical cash isn't going anywhere either.

[Kakmakr]

I can think of several scenarios where Fiat currencies are still needed, namely :

1. Where there are no electricity infrastructure.
2. Where it is not safe to carry expensive smart phones.
3. Where there are no access to the Internet.
4. Where there are a high number of illiterate people.
5. Where there are people with disabilities that presents challenges for electronic payment options.

I personally think there are still huge challenges that needs to be addressed, before electronic payment options can permanently replace Fiat currencies and that alternative payment options can co-exist with Fiat currencies.

let's not put the cart before the horse. cryptocurrency needs to actually go mainstream first---and not just as a speculative investment to be hoarded. like hatshepsut93 points out, bitcoin and lightning can't begin to handle all the world's transactions. neither can other blockchains, which are either less scalable or will suffer from the same inefficiencies as bitcoin.

everybody should just get used to cryptocurrencies coexisting with fiat, which isn't going anywhere as long as nation states still exist. i sure hope physical cash isn't going anywhere either.

Ok, the scalability and capacity of the technology is still debatable, but it is still under development and improvements are done daily. I think the Lightning Network will only be one of the scaling options in the future and we might see some other Alt coins becoming more widely used for some use cases.  

The majority of the replies seems to show that a co-existence between Fiat currencies and Crypto currencies are possible and that there might be a slow shift from Fiat currencies to Crypto currencies in the future.  

[LogitechMouse]

In some countries like the first world countries, digital money is starting to rise already but still there are still some countries that prefer to use fiat currencies when they buy instead of buying it thru digital money.

Fiat currencies exist for a long time already and that is the currency we are using globally. In the future maybe we can see more countries using digital money but there are some countries who doesn't have any access to internet or to any of these things that can help them send their money thru digital process. Maybe there is a chance that we will be shifted from fiat currency to cryptocurrency but for me it will be better if these 2 will co-exist as a way of payments.

[smyslov]

I'd like to break it down all that you laid down which are all true

I can think of several scenarios where Fiat currencies are still needed, namely :
1. Where there are no electricity infrastructure.

There's always  place in our world or planet where electricity doesn't exist and there are people who prefer to live on this area

2. Where it is not safe to carry expensive smart phones.

Here in our country thieves are always on the look for that expensice phone

3. Where there are no access to the Internet.

I live in our country where majority of the area doesn't have access to the internet

4. Where there are a high number of illiterate people

This I agree every country has this sectors of people

5. Where there are people with disabilities that presents challenges for electronic payment options.

This is one of the strong reasons why fiat and Cryptocurrency should co exist

[Herbert2020]

i don't like your categorization, i prefer to categorize them like this: physical versus digital money and also centralized versus decentralized currencies.

there has obviously been a transition going on for some time now from the physical form of money to more digital which includes credit cards, online payment processors, cryptocurrencies,... this transition won't complete in one day. it will take many years to complete as it is with any other transition. people didn't switch to paper money in one day to now want to switch to digital money. but eventually we stop seeing physical money to exist.
so to answer your "modified" question, no cash (the physical form) will cease to exist eventually.

the other category is different. i don't think we can ever see a replacement of centralization with full decentralization. as we can see already, bitcoin is used but it is not meant to replace fiat.
so to answer your "modified" question again, yes both centralized and decentralized currencies will coexist in the future.

[Shasha80]

We can not replace fiat with cryptocurrency just like that, we still need to conduct surveys and more in-depth research. Do not get the
wrong step, it will be difficult to fix it later. Must be thought out and planned carefully. In my opinion fiat is still needed today, because
cryptocurrency has a weakness there must be an electricity network and Internet. Whereas fiat is not dependent on electricity and the internet,
because there is a physical form. My advice are both fiat and crypto can co-exist, so they can complement each other. From there it will create
harmony for payment transactions.

[Coyster]

I wouldn't mind not using fiat currencies anymore, but if that happens how then would I be able to cope since the area I live in is still struggling to achieve a cashless society. Credit and debit cards are being integrated, but that's still more or less "fiat". If I stop using cash, I'll love it to be replaced with cryptocurrencies, bitcoin to be exact because I'm a staunch believer in its potentialities.

You and I know it's not possible for bitcoin to replace fiat, so I'll just continue using the bitcoin more alongside my fiat currency

[zhekinsp]

IMO,fiat should be completely vanished if the humanity want to live better life or they will keep running for their entire life but they will still die as poor this is how fiat methodology works.If crypto was only accepted then people with such scenarios will get practice to use it and in less than a decade they will be master of spending those as well.

[bitzizzix]

It is not easy to replace fiat currencies with cryptocurrency and if that is possible it still requires quite a long time and will definitely go through the pros and cons in a country to change it.
if both are used together in my opinion it will happen in the near future and cryptocurrency can be used as an alternative equally.

[Wind_FURY]

I used to believe that cryptocurrencies would replace paper money faster than paper money replaced gold coins. Not anymore, I had too much Andreas Antonopoulus. Haha.

I believe that physical cash must never go away.