How long will it take banks to phase out physical cash completely?

[Mauser]

Nonetheless, I think there's no rush for banks to switch to CBDCs. After all, credit/debit cards, and in some cases, physical cash are being used in these times of turmoil

Nothing can beat hard cash

However, CBDCs will be a step forward from payment cards issued by banks. Right now we can't directly communicate with a central bank, only through middlemen like regular banks. You know, as the saying goes, when you talk to God it's prayer, but when God talks to you, it's schizophrenia. As it turns out, now you can send curses to the central bank, then with a CBDC the central bank will be able to send curses back to you directly

The thing I noticed now that banks here are doing is limiting the withdrawl per months by cards to 5 uses. After that you have to pay fees just to get cash. It's another step to bring people to use cards only. I see it with most young kids at the supermarket. They never you cash, cards only. Unfortunately it's the future, but I will try to stick as long as possible to my beloved cash and gold. It's been around for thousands of years.

[1715254658]

1715254658

[Abiky]

If the bank did, I'm sure it would be very fast. Especially with the support of the government as an official agency that can make everyone believe. Trust me, with just 2 years, banking can make digital money with a very large user and can be understood by 80% of people in the country.
We know that every leader in this nation has a branch to the smallest degree is a leader who arranges in units of 50 houses. And it is not difficult for the government and banking safely according to applicable health protocols

Phasing out physical cash may be quicker than I've expected. However, developing a CBDC alongside its own Blockchain network will take a couple of years before it's finished. I'd say the whole process of developing a CBDC and phasing out physical cash from existence will take a couple of decades from now. Rest assured, that we'll continue to use credit/debit cards and physical cash for quite some time. The COVID-19 pandemic has only increased interest from central banks and governments into launching CBDCs for people to use in the mainstream world. But improving the world's economy doesn't happen overnight.

In the end, crypto and CBDCs will live alongside each other for the foreseeable future. People will still "hodl" physical cash, but they'll be unable to use it because its "legal tender" status will be revoked. Maybe banks will allow people to trade physical cash for CBDCs? Whatever happens in the future, we'd have to admit that Bitcoin has changed our world for the better ever since it came into inception back in 2009. Just my opinion

[DooMAD]

Phasing out physical cash may be quicker than I've expected. However, developing a CBDC alongside its own Blockchain network will take a couple of years before it's finished.

Are we absolutely certain any CBDCs will involve blockchains?  In a centralised currency, blockchains have notably few real benefits over simply using an ordinary database.

I'm sure while they're in the current research stage, while different countries are still looking into what's possible, I've no doubt they'll consider blockchains, but may conclude they're not the most efficient option.

[deisik]

The thing I noticed now that banks here are doing is limiting the withdrawl per months by cards to 5 uses. After that you have to pay fees just to get cash. It's another step to bring people to use cards only

But what is the driving force?

That is, are they intentionally limiting cash turnover or are they doing that for some practical reasons which have nothing to do with phasing out cash? As far as I remember, you always had to pay some fee after reaching a certain limit of money withdrawn. Rates are different across different banks, but that was always the case. I've been using payment cards for like 15 years, and all this time withdrawing cash has been a pain in the ass (above certain amount)

I see it with most young kids at the supermarket. They never you cash, cards only. Unfortunately it's the future, but I will try to stick as long as possible to my beloved cash and gold. It's been around for thousands of years

I'm using cards myself for the simple reason they are more convenient. But I always have cash in my pocket, to be on the safe side if something is out of whack at the cashier's

[suvo05]

Until and unless there is free 24/7 internet in every corner of the world the physical cash cannot be phased out. Also the literacy and at least mobile phone for the people is needed to do so.

[Abiky]

Are we absolutely certain any CBDCs will involve blockchains?  In a centralised currency, blockchains have notably few real benefits over simply using an ordinary database.

I'm sure while they're in the current research stage, while different countries are still looking into what's possible, I've no doubt they'll consider blockchains, but may conclude they're not the most efficient option.

That depends. If governments want security/reliability above anything else, they can use existent centralized blockchains like XRP or IOTA. But since CBDCs will be utterly centralized, a traditional database might be able to serve their purpose well. After all, Blockchain is all about decentralization eliminating the middleman from the process. If the ledger is centralized, it cannot be considered a Blockchain. Due to CBDC's centralized model, they'll enjoy of greater performance and efficiency than traditional cryptocurrencies such as Bitcoin or Ethereum. Banks will win in the long run, dominating the world's economy as they've always done. I believe that the process of launching CBDCs to the public will be much quicker than we've expected.

As far as I know, developing a network from scratch with specifications for the CBDCs is not an easy task. This may take quite a long time to materialize as developers need to thoroughly test the new digital currency before it's launched by the central bank. If governments and central banks are beginning to plan how CBDCs will work and how will they behave in the mainstream world, then it'll be decades from now before physical cash will be phased completely from circulation. For what I know, it takes time for people to become accustomed to a new monetary system. The elderly will have a hard time switching from physical to digital cash. It's hoped that young people adopt digital payments for the full transformation of the world's economy to materialize sometime in the future. Just my thoughts

[Xanxus024]

I think the phase out of physical cash are not going to happen because a lot of people not know how to use cashless transaction and they still prefer the traditional way and beside some of the other places has no access of internet and there are still many people don't have a smart phone. But as time goes by using digital transaction will adopt little by little.

[DooMAD]

Are we absolutely certain any CBDCs will involve blockchains?  In a centralised currency, blockchains have notably few real benefits over simply using an ordinary database.

I'm sure while they're in the current research stage, while different countries are still looking into what's possible, I've no doubt they'll consider blockchains, but may conclude they're not the most efficient option.

That depends. If governments want security/reliability above anything else, they can use existent centralized blockchains like XRP or IOTA. But since CBDCs will be utterly centralized, a traditional database might be able to serve their purpose well. After all, Blockchain is all about decentralization eliminating the middleman from the process. If the ledger is centralized, it cannot be considered a Blockchain. Due to CBDC's centralized model, they'll enjoy of greater performance and efficiency than traditional cryptocurrencies such as Bitcoin or Ethereum. Banks will win in the long run, dominating the world's economy as they've always done. I believe that the process of launching CBDCs to the public will be much quicker than we've expected.

As far as I know, developing a network from scratch with specifications for the CBDCs is not an easy task. This may take quite a long time to materialize as developers need to thoroughly test the new digital currency before it's launched by the central bank. If governments and central banks are beginning to plan how CBDCs will work and how will they behave in the mainstream world, then it'll be decades from now before physical cash will be phased completely from circulation. For what I know, it takes time for people to become accustomed to a new monetary system. The elderly will have a hard time switching from physical to digital cash. It's hoped that young people adopt digital payments for the full transformation of the world's economy to materialize sometime in the future. Just my thoughts

Part of me feels like we're overthinking this and that it's not really going to look much different than the present infrastructure, but simply minus the physical cash.  These people aren't natural born innovators.  I'm pretty sure they'll spend a few years researching, but then they'll stick with exactly what they've got now and just start removing notes and coins from circulation.  Ardent cash users aside, most people have already made the switch to digital money.  So why would they build something radically new from scratch?

[palle11]

I think the phase out of physical cash are not going to happen because a lot of people not know how to use cashless transaction and they still prefer the traditional way and beside some of the other places has no access of internet and there are still many people don't have a smart phone. But as time goes by using digital transaction will adopt little by little.

And also tradition is difficult to let go. Internet really makes it difficult for all to use and the older people are part of the society. Maybe in the long time to come but most of us won't be around at the time if it happens.

[Mauser]

I think the phase out of physical cash are not going to happen because a lot of people not know how to use cashless transaction and they still prefer the traditional way and beside some of the other places has no access of internet and there are still many people don't have a smart phone. But as time goes by using digital transaction will adopt little by little.

I agree, there are still plenty of generations out there who love to use cash. My grandparents always used cash. Using electronic payments is just in there nature. For young people today it's common to only pay by card. I would assume that until the z generation is in retirement we will see companies and stores accepting cash. In my country its still mandatory for business to accept small denomination coins.

[goldade]

As we enter the digital realm due to the effects of COVID-19, the process of central banks phasing out physical cash from existence might take place soon. Before the outbreak, we've been accustomed in using credit/debit cards and contactless payments greatly eliminating the need for physical cash. Now that we're in a "COVID Era", things have accelerated quite a bit. Banks and governments are in talks of adopting CBDCs which could completely eliminate the need to pay for things with physical cash.

Now the real question is, how long will it take banks to start the transition from physical to digital cash (CBDC)? Do you think that physical cash will still be used right after governments adopt CBDCs in their entirety? Or will it take decades before every single person in the world stops transacting with physical cash, paving the way for a full-fledged cashless society? Your input will be greatly appreciated.

Certainly it'll take decades if not years before banks can completely eradicate physical cash to adopt digital money.
This may be faster in some countries than others but still, it will take a long time.
Consider Africa, this is a place where a large percentage of the population are illiterate. These are people who cannot read or write people who can't operate a smartphone or a computer. How then is it possible for these people to adopt digital cash? These are people who trust only what is right in front of them
I'd say eventually we'll get there but it is not possible in the nearest future for every single person in the world to adopt digital cash

[whyrqa]

I believe that the only obstacle to the complete rejection of the banking system from paper money is the demand for paper bills in society. One way or another, the banking system has all the technical capabilities to fully and without problems provide non-cash services to customers.

[finaleshot2016]

I think the phase out of physical cash are not going to happen because a lot of people not know how to use cashless transaction and they still prefer the traditional way and beside some of the other places has no access of internet and there are still many people don't have a smart phone. But as time goes by using digital transaction will adopt little by little.

I agree, there are still plenty of generations out there who love to use cash. My grandparents always used cash. Using electronic payments is just in there nature. For young people today it's common to only pay by card. I would assume that until the z generation is in retirement we will see companies and stores accepting cash. In my country its still mandatory for business to accept small denomination coins.

Even the current generation will still use cash as a payment method because not all are capable of having a device for implementing a cashless society in the future. For me, the use of cash in the future is still essential because we can't rely on online transactions too much and we should prefer those payments that are being used for decades.

There's a lot of mobile wallets that occur on many platforms but I guess its true purpose is for online transactions only, so those people who are constantly having transactions in online thought that it cashless society is a good thing.

[jademaxsuy]

It will take some time probably if it will going to happen but for me fiat or the physical money should not be eradicated. It is good tha people could have a choice whether to use the physical money or not. The good thing of having the digital money is the ease of doing transactions while in physical money the ease of doing small business where still not accepting digital money and still uses the physical money. If all will be digital then there could be a lot of issues we will going to face and that includes the dependency of digital to which it will require network cnnection for onlinr transactions. Costly too because operations, maintenance of the equipment to be used will be added to the consumers.

[dansus021]

As we enter the digital realm due to the effects of COVID-19, the process of central banks phasing out physical cash from existence might take place soon. Before the outbreak, we've been accustomed in using credit/debit cards and contactless payments greatly eliminating the need for physical cash. Now that we're in a "COVID Era", things have accelerated quite a bit. Banks and governments are in talks of adopting CBDCs which could completely eliminate the need to pay for things with physical cash.

Now the real question is, how long will it take banks to start the transition from physical to digital cash (CBDC)? Do you think that physical cash will still be used right after governments adopt CBDCs in their entirety? Or will it take decades before every single person in the world stops transacting with physical cash, paving the way for a full-fledged cashless society? Your input will be greatly appreciated.

in my opinion it will take very longgg time or nearly impossible cause there's lot of development country or the old people like your post in bitcoin discussion that barely don't know about e-money

It will take some time probably if it will going to happen but for me fiat or the physical money should not be eradicated. It is good tha people could have a choice whether to use the physical money or not. The good thing of having the digital money is the ease of doing transactions while in physical money the ease of doing small business where still not accepting digital money and still uses the physical money. If all will be digital then there could be a lot of issues we will going to face and that includes the dependency of digital to which it will require network cnnection for onlinr transactions. Costly too because operations, maintenance of the equipment to be used will be added to the consumers.

and totall agree with these 

[bits4books]

Until and unless there is free 24/7 internet in every corner of the world the physical cash cannot be phased out. Also the literacy and at least mobile phone for the people is needed to do so.

Well, by the way, Yes lol. These are quite obvious requirements - if we are talking directly about the whole world as a single structure.
On the other hand, in some countries, it is already quite possible to start giving up cash even today - only the elderly will suffer (you can leave cash for them). Decide for example that if you are less than 65 years old then please hand over all cash and that you will not be accepted non cash payments.
Quite strict measures but on the other hand it may well work

[Sundilhan]

This will almost be impossible to achieve and may never happen. We all know the elites and political class as well as the high and mighty in the society will never allow this to happen for reasons best described as hanging unto power. With COVID-19, we have seen a shift in believe and why decentralized economy might just be what the world needs. Blockchain has a lot to offer the world if given the chance and if done properly. We have already seen solutions like NowPayments achieving and breaking barriers in such a little time of coming up. Businesses and merchants can now finally transact businesses from the comfort of their homes without worrying too much as to how payments can be made or receive. Nowpayments is offering a solution that takes care of everything with tremendous speeds, security and convenience. This is what blockchain can do and this is what a decentralized economy should look like. There are several options available to global economies through blockchain and it is about time the world openly adopt its solutions and face out the traditional ways of banking and fiat currency.

[tippytoes]

Until and unless there is free 24/7 internet in every corner of the world the physical cash cannot be phased out. Also the literacy and at least mobile phone for the people is needed to do so.

Well, by the way, Yes lol. These are quite obvious requirements - if we are talking directly about the whole world as a single structure.
On the other hand, in some countries, it is already quite possible to start giving up cash even today - only the elderly will suffer (you can leave cash for them). Decide for example that if you are less than 65 years old then please hand over all cash and that you will not be accepted non cash payments.
Quite strict measures but on the other hand it may well work

Those above requirements will not pave the way for us to go full cashless society. Because a lot of people still prefer the traditional way of paying, via fiat currency. I don't think we will be seeing in our lifetime our world as cashless. There will always be areas like rural and remote areas that will not be open to this modern change. And also up until now, a lot of people don't own smartphone to begin with as well as internet connection. Maybe, we will see a specific country to be cashless society soon like for example Sweden, but we don't know if they can truly implement being one in all aspects.

https://www.moneyunder30.com/what-countries-are-going-cashless

[Abiky]

Certainly it'll take decades if not years before banks can completely eradicate physical cash to adopt digital money.
This may be faster in some countries than others but still, it will take a long time.
Consider Africa, this is a place where a large percentage of the population are illiterate. These are people who cannot read or write people who can't operate a smartphone or a computer. How then is it possible for these people to adopt digital cash? These are people who trust only what is right in front of them
I'd say eventually we'll get there but it is not possible in the nearest future for every single person in the world to adopt digital cash

Yeah. There's no hurry for phasing out physical cash, as old people are reluctant to change their habits. This will be a long journey as governments and central banks slowly introduce CBDCs to the world. In the meantime, we can enjoy stablecoins which serve the exact same purpose of a CBDC. You can easily convert your Fiat to a stablecoin of your choice to get the "best of both worlds". There are some stablecoins living on scalable blockchain networks allowing you to enjoy blazing fast transactions for less than a penny. The difference between a CBDC and a stablecoin is the way they're regulated by mainstream governments. The former will have all the backing of investors, traders, and everyday people just like it's the case with physical cash (Fiat) today.

The real issue would be getting third-world or developing countries to adopt digital currencies (CBDCs) at a large scale. People living on these countries are still not fond of technology, so it'll take a longer time than usual for physical cash to be phased out completely from the face of this Earth. Slowly but surely, we'll experience a fully-cashless society as physical cash becomes a thing of the past. The average person won't notice the benefits except central banks and governments themselves. Let's hope that the transition from the old monetary system to a modern one turns out to be a smooth one. Just my thoughts

[FlightyPouch]

Until and unless there is free 24/7 internet in every corner of the world the physical cash cannot be phased out. Also the literacy and at least mobile phone for the people is needed to do so.

I think this shouldn't be the basis for that. Here in our country, there are still a lot of places that don't have a stable electricity where a lot of brownouts are happening. In case of literacy, since milennials are getting older whose generation are used to technologies, I guess we don't have a problem with it. Still, that would take years or maybe a decade.