So much for cashless society: cash is gaining in popularity

[error08]

it can't be generalized, there are cashless society and citizens in some countries always use cash in their daily lives. Both have advantages and disadvantages on their own.

If people need less cash to pay for stuff, why do they want to hold so much of it? The answer, it seems, is that they’re turning to currency as a store of value.

If paper money being used as a store of value, it means people believe in the government to maintain its value, but it has proven that the value always declining slowly.
In the end, it just the individual perspective and fundamental understanding of economics, then people will decide where to store their wealth.

[nasipadang]

Actually paper money cannot store value, this is not a matter of being eaten by termites or the like, this is more to economic factors and inflation. You can save money with cash but the value will decrease. There is already a hardware wallet, what is paper cryptocurrency for? There are still many who do not support alternative crypto payments.

[crwth]

I don't personally think the issue here is really with people lacking the devices or internet access to use mobile or card payments, it's much a different issue.

Are you sure about that? Isn't that a part of the Society that we are talking about? How are you going to make use of cryptocurrencies without those said devices? Let me know. I doubt that having a paper cryptocurrency would help you verify that it's legitimate or not. It could be faked. If we also utilize having that "paper", what's the difference with the said "Cash". It's paper too, right?

A lot of people still prefer to use cash compared to easier mobile payments, there is actually a lot of benifits to using cash compared to card, especially since it's a lot harder to track and it's pretty popular to use as a storage tool due to just how untraceable it is.

What's your point here? I hope you add more than what you are saying, not just saying that Cash is better than Card. We're not even talking about credit cards here. Anyways, there's still the part where you either want Digital or Tangible object to represent different values that could be transacted to other people. So what's your choice? For me, I would choose digital, just for the convenience of having to not carry any cash around me and not being needed to be given my change in a public utility vehicle. It's quite annoying, tbh.

[o_e_l_e_o]

I Don't like the fact that Libra is centralized but it may be the only hope for the entire world to be educated about crypto.

Nonsense. As fiat continues to devalue, as the banks get another government bail out, and as the average person continues to see their purchasing power and quality of life fall, they will be yearning for a new system which works for them, rather than punishes them. We don't need an entity as corrupt as Facebook with their centralized scam coin to bring people in.

I've always wonder how would I explain the concept of Block-chain and Bitcoin to my grandparents or the younger generation without putting them to sleep.

By breaking it down. "If you can't explain it simply, you don't understand it well enough", as the old saying goes. Furthermore, ones ability to successfully use and transact in bitcoin does not depend on a in-depth knowledge of the blockchain, just as ones ability to successfully use and transact in fiat does not depend on an in-depth knowledge of monetary policy, fractional reserve banking, or credit card security and encryption.

Especially when everyone loves accepting cash (no fees or fraud).

It's rarely consideration for the small credit card fee or potential fraud which makes people more eager to accept cash and offer a discount on its use. It's almost always the ability to avoid declaring the trade for tax purposes.

[alexsandria]

It is secured in terms of physically stored but it don't make no sense. What's the point of having paper crypto currency when you could use it in technologies. Sending transaction in such addresses wouldn't be applicable to that as if we have to go to banks physically. Plus, I highly doubt that it would work the way you think. Besides, bitcoin is blockchain which is encrypted inside the technologies itself in which paper currency cannot even. It has value in a sense of its appearance but bitcoi is not.

[ecnalubma]

Cash is the modern king of our current financial system, but the transition of goin cashless society could take a long process or could even take decades before all of us are fully transformed. But as of the moment bank and crypto should work together to bring-in the transformation slowly.

[daarul50]

As the article you have linked states, paper currency is predominantly favored by the elderly. They don't trust banks, but it's not for the reason we don't trust banks. We know that banks are centralized, self serving, privacy invading leeches who print money out of nothing to line their own pockets whilst ripping off their clients. The elderly generally don't trust banks because so much of banking is done online now. They don't believe the numbers on the screen because they don't understand technology or computers, and so they opt for the medium they have used for the majority of their lives - physical cash. The younger generation are the opposite. I couldn't tell you the last time I bought something for actual cash. I have a few bills in my wallet just in case, but I've carried the same bills around for months. All my fiat spending is done via card. Cash may see the odd surge here and there because of the banking crisis, but by and large, it is on the way out.

But people have to believe that electronic money will be safe from mismanagement, man-made disasters, hackers and even confiscation.

I found this line interesting. You can never be sure that your fiat stored in banks is going to be safe from either mismanagement or confiscation. Once you hand your money over to a bank, you have no control how they invest or lend it out to others, and they also maintain the power to freeze your assets if they don't like something you are doing. Only being your own bank with bitcoin can provide this safety.

that is really true the elderly have no idea what we have developed during this years to switch the old fashion transaction digitally.

they are mostly fear to even try new things, we can not blame about this.
those who have no trust in banks sometimes based on their experience storing money in the bank and having problem to cash all the money out as the bank ask too many questions why they want to cash the money out etc, they feel it is unecessary and uncomfortable for them especially for those who need that money urgently.
i still confident that more than 25% the total transaction around the world is already made digitally/cashless .

i can not find any data or survey about this cashless society around the world, if someone have / found it , you can share it here please.

[alyssa85]

I think this is linked to negative interest rates in certain parts of the world (the eurozone, Denmark, Japan). Why would you deposit money in a bank if the bank is going to charge YOU for depositing it?

Also - in 2017 the eurozone passed bank bail-in rules. That means that if you bank in the eurozone, and your bank fails, they will confiscate money from the depositors before there is a bail out by the govt. The idea is to reduce what the taxpayer has to pay.

If you are worried about the stability of the local banks, it makes sense to keep your cash at home in a safe deposit box, and beef up the security on your doors, windows and home in general.

[Ucy]

   I wholeheartedly agree that the world may not be ready for a cryptocurrency as a store of value. Cash is way easier to handle for the common Joe's of society. The only way that I can see people running to cryptocurrency is for a major institution to introduce it to the public. I Don't like the fact that Libra is centralized but it may be the only hope for the entire world to be educated about crypto. I've always wonder how would I explain the concept of Block-chain and Bitcoin to my grandparents or the younger generation without putting them to sleep.
  Many people won't touch cryptocurrency period unless it has an institutional stamp of approval on it. The people that I do see adopting are the impoverished who have nothing to lose and tech enthusiasts. Libra could be that answer that get peoples feet in the water. Whether they decide to take the plunge is up to them, but at least their feet will be wet.

You really underestimating what can be achieved with Blockchain/Cryptocurrency.
it's very possible to bring millions of people to cryptocurrency in a short time. I believe some know this can be easily done but have some pity for governments. Any great developer who does not care could easily attract millions of people in a short time without breaking the law. 

[audaciousbeing]

   I wholeheartedly agree that the world may not be ready for a cryptocurrency as a store of value. Cash is way easier to handle for the common Joe's of society. The only way that I can see people running to cryptocurrency is for a major institution to introduce it to the public. I Don't like the fact that Libra is centralized but it may be the only hope for the entire world to be educated about crypto. I've always wonder how would I explain the concept of Block-chain and Bitcoin to my grandparents or the younger generation without putting them to sleep.
  Many people won't touch cryptocurrency period unless it has an institutional stamp of approval on it. The people that I do see adopting are the impoverished who have nothing to lose and tech enthusiasts. Libra could be that answer that get peoples feet in the water. Whether they decide to take the plunge is up to them, but at least their feet will be wet.

The best way to put it is that the majority of the world is not ready for crypto as a store of value because of people wants protection of their assets i.e they want a situation which at worse would keep their capital the same if it won't turn out profit which to crypto cannot guarantee at the moment due to several reasons and the why, that fiat can do that,  is because of the regulatory factors of government and its agent, take that from fiat, people would start drifting towards crypto.

On the institutional stamp, it means such stamp would connote trust and protection if that cannot be a guarantee, it would amount to the same thing with crypto current scenario being witnessed in crypto.

[deisik]

If people need less cash to pay for stuff, why do they want to hold so much of it? The answer, it seems, is that they’re turning to currency as a store of value.

Cash as a store of value?  I suppose if you were to hold it for less than a year it wouldn't lose *that* much value, but inflation will still work its black magic and eat away at that cash's purchasing power.  That doesn't sound like a great store of value to me

That depends on your purpose

Cash is good for making emergency expenses, so if you keep a certain percentage of your wealth in a stable currency as cash for a "rainy day" (say, in the US dollars), it can be a worthy store of value after all, even despite a small loss of purchasing power over years. In other words, you can easily make up for that loss of purchasing power by adding something to that stash of cash as your wealth grows in years and value

[Clement Kaliyar]

The question of what the best store of value is, has gained in popularity lately.
It appears the solution some have adopted is: paper money is the best store of value!
All of which highlights a dire need for: paper cryptocurrency.

The best store of value is still the fiat currency and having a saving account in a bank is the safest option until your country has some serious economic crisis, storing these paper money and that too at home is not the smartest move and majority who does that may have made those through illegal purposes and hence not able to deposit in banks as you need to provide the source of income, paper cryptocurrency is also not a smart move but we might see that in the future but i am not going to use that for obvious reasons.

[AliMan]

The question of what the best store of value is, has gained in popularity lately.
It appears the solution some have adopted is: paper money is the best store of value!
All of which highlights a dire need for: paper cryptocurrency.

The best store of value is still the fiat currency and having a saving account in a bank is the safest option until your country has some serious economic crisis, storing these paper money and that too at home is not the smartest move and majority who does that may have made those through illegal purposes and hence not able to deposit in banks as you need to provide the source of income, paper cryptocurrency is also not a smart move but we might see that in the future but i am not going to use that for obvious reasons.

Making your fiat savings stagnant is the worst scenario at all, because it doesn't gain any huge fluctuations while you choose to store it in your bank account. Much better if we're going to use it for crypto investments while it's still had the chance to increase at huge amount of percentage. You double or triple that amount of yours if you're willing to risk for higher returns in long term trading.

[uray]

The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.
All of which highlights a dire need for: paper cryptocurrency.

I am not supporting the conversion of all the paper money to digital as it does have its problems which will be a problem for anyone visiting a casino or a strippers club or any other taboo stuff that you want to do privately and i do not want that transaction being registered throughout history so that anyone could check that later. The option must be given to every individual on what they are comfortable and not force anyone to use any one form over the other.

[senne]

"The ease of use" wins over every other feature.

Cash is still a widely used form of payment even when vast majority of global population uses mobile and digital literacy is increasing. The reason is that the cash is the most simplistic and the most convenient form of payment and if anyone is carrying cash, it will be his first preference of payment mode.

This is how many companies do product differentiation too. There might be many phones with better features, but iPhone wins over with its simplicity and ease of use.

[silversurfer1958]

It appears the solution some have adopted is: paper money is the best store of value!

The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.

  it is only a rare case and the cause is just carelessness. But in payment, fiat money is still the best and is being used by many countries.
I really like a society like now, why do we change to crypto when it's a volatile asset and a limited supply. For that reason, I always support fiat money and only use crypto as a trading tool

[CryptoBry]

The question of what the best store of value is, has gained in popularity lately. It appears the solution some have adopted is: paper money is the best store of value! The trend of holding paper money has traditionally been more common in nations like japan but appears to be spreading to the united states. It won't be long before the media publishes news stories about unfortunates storing paper bills under their mattresses only for their cash to be devoured by termites, ants or assorted insects. To "nudge" consumers away from that horrible, nasty, evil paper currency, towards a digital cash future.
All of which highlights a dire need for: paper cryptocurrency.

Paper money or fiat money can be getting more interest by a lot of people based on the cited statistics but these people can be wrong all because that fiat money is very much subjected to inflation, so at the end the store of value they are looking for may not be there at all. I would not argue that between a digital asset which we can't see, touch and examine and a fiat money which is, of course, tangible many people may choose the fiat one but this is because they do not know better. People who are educated with cryptocurrency already have a different mindset. Now, this means that there are still many people that cryptocurrency has not reached...and this is opening a bigger market for it to play and conquer. However, let me be clear that I do not believe that we need to eliminate the fiat money just because we are involved with cryptocurrency because the two can actually coexist peacefully and be complimenting each other.

[Google+]

Cash is the modern king of our current financial system, but the transition of goin cashless society could take a long process or could even take decades before all of us are fully transformed. But as of the moment bank and crypto should work together to bring-in the transformation slowly.

the transition requires a long process and infrastructure support and the government active role.  without it, the cryptocurrency will collapse in competition with paper money. paper money is currently an idol for all types of transactions because it is free of transaction fees.
if want to compete, transaction costs should be zero. this is why paper money will always be popular and continue to be stored for all time

payment using cash will indeed require a very long time which is why cryptocurrency will be needed because there will be many digital eyes that will be created and can provide convenience when making transactions wherever you want and I think in the future there will be many payments using currency digital.

[deisik]

The question of what the best store of value is, has gained in popularity lately.
It appears the solution some have adopted is: paper money is the best store of value!
All of which highlights a dire need for: paper cryptocurrency.

The best store of value is still the fiat currency and having a saving account in a bank is the safest option until your country has some serious economic crisis, storing these paper money and that too at home is not the smartest move and majority who does that may have made those through illegal purposes and hence not able to deposit in banks as you need to provide the source of income, paper cryptocurrency is also not a smart move but we might see that in the future but i am not going to use that for obvious reasons.

Making your fiat savings stagnant is the worst scenario at all, because it doesn't gain any huge fluctuations while you choose to store it in your bank account

Well, opinions vary on this one

If you happen to live in a country other than the US or those which are part of the Eurozone (that have adopted the euro as their common currency), you are most certainly exposed to high levels of currency volatility. And that gives you a certain advantage that you can exploit by actively managing your cash portfolio through riding the fluctuations of the exchange rates in pretty much the same way we are doing that in crypto. Indeed, it requires that you follow the price dynamic but if you do you turn the tables, and now it doesn't feel like the worst scenario "at all" (in fact, it feels good enough to beat inflation)

[doomistake]

If people need less cash to pay for stuff, why do they want to hold so much of it? The answer, it seems, is that they’re turning to currency as a store of value.

Cash as a store of value?  I suppose if you were to hold it for less than a year it wouldn't lose *that* much value, but inflation will still work its black magic and eat away at that cash's purchasing power.  That doesn't sound like a great store of value to me

That depends on your purpose

Cash is good for making emergency expenses, so if you keep a certain percentage of your wealth in a stable currency as cash for a "rainy day" (say, in the US dollars), it can be a worthy store of value after all, even despite a small loss of purchasing power over years. In other words, you can easily make up for that loss of purchasing power by adding something to that stash of cash as your wealth grows in years and value

When emergency comes, "savings" will take action for that, but, holding a currency (the local ones) in a country where there is hyperinflation, then there is no point of doing such thing, therefore I agree that saving it on US dollars will save you from that consequence.