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

[Sapphire915]

It would be great if Cash will be phase out  completely especially now that we are fighting with covid-19 and paper bills can definitely contains viruses after a long term used..but, i guess its impossible because Cash is the most essential notes/currency that we are traditionally using from time to time, most especially when buying goods in the market. We often used it for our daily needs and besides, not everyone has the knowledge in using digital currencies nor access to the internet.
Maybe after so many decades, if the world is fully high technology driven, maybe then, the banks can possibly phase out cash completely and digital fund management will be practice all throughout the world.

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[TrevorS]

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.

The global pandemic might speed up the process of digitization by a bit, but its still a long way for banks to disappear the physical cash currency completely. Many national banks across the world are onto the idea of launching their own “central bank digital currency” also know as CBDC. It will still take the government at least 5-7 years to eliminate the use of physical cash to a great extent.

Complete digitization of the payment system may take 10-15 years. Dominos in some countries has stopped accepting cash as a payment method due to the ongoing pandemic scenario to avoid any type of contact even through paper money. So, that’s definitely a step towards digitization.

Everything is correct, but only on condition of stable economic development. If you look at 2020, the word stability can hardly be applied to it. There are too many incidents that can create global problems and disasters. We cannot know what technologies will appear in the near future, it is possible that something that will replace all financial assets will be invented, or there may be a war that will stop all development on the planet.

[Abiky]

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.

With many countries still behind others in terms of adopting the latest technologies, digital currency payments' growth will stifle. For governments to be able to roll out their CBDC solutions, there needs to be widespread Internet access all over the world. And that could take decades to happen. Not to mention, physical cash needs to be phased out from existence at a slow and steady pace.

For what I know, it's not a priority to transition from physical to digital cash. Of course, there are added benefits such as faster transaction processing times and higher efficiency to banks using CBDCs. But physical cash can still do well in a digital economy dominated by crypto and credit card providers. No matter how far crypto reaches in terms of mainstream adoption, it'll never be able to compete with banks directly. That's largely because banks dominate the world's economy. They essentially control the supply/issuance of national currencies. Adopting a CBDC now or later will not make any difference at all. Instead, the average person will be able to conduct transactions digitally (instead of physically). But the rest will remain likely the same. Ultimately, physical cash will become history as the world enters a new era where intangibility is put above everything else. It could take decades, or in worse-case scenarios, another century before everything shifts to the digital realm. At least, we'll be able to continue using physical cash during our lifetimes. Just my opinion

[Alert31]

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.

I think in my country it will not happen to phase out physical money even there is already a digital money or credit/debit card. Not all knows how to use cashless method and it is a long process. Not even have a good internet connection. There's a lot to consider before phasing out physical cash.

[dimonstration]

I think in my country it will not happen to phase out physical money even there is already a digital money or credit/debit card. Not all knows how to use cashless method and it is a long process. Not even have a good internet connection. There's a lot to consider before phasing out physical cash.

Many government were dependent in physical money, and not all is able to adopt in technology many part of my country is still living traditionally without the use of Internet or any appliances that are operated thru Internet, even electricity sometime were lacking. So implementation of no physical money will be impossible to do, it will depend on what country we stay if they are already accepting not physical coins butt not maybe fully operated as every country still needs some physical money due to our elder people who may have problem adopting in these advanced technologies.

[Abiky]

Many government were dependent in physical money, and not all is able to adopt in technology many part of my country is still living traditionally without the use of Internet or any appliances that are operated thru Internet, even electricity sometime were lacking. So implementation of no physical money will be impossible to do, it will depend on what country we stay if they are already accepting not physical coins butt not maybe fully operated as every country still needs some physical money due to our elder people who may have problem adopting in these advanced technologies.

It'll be quite challenging to introduce CBDCs to the world, since not many countries are up-to-date with the latest technologies in the mainstream world. Given that many third world countries are still using physical cash above anything else, it may take decades before you and I will be able to see the whole world transacting in digital currencies. Central banks know the benefits of launching their own digital currencies, including (but not limited to) massive surveillance and greater outreach of a person's funds. Which is why I think it'll be the end of privacy once CBDCs start rolling in at a large scale.

In the bright side, crypto will survive even if physical cash transitions to the digital realm in the future. That's thanks to crypto's decentralized and open source nature. The longer banks take to phase out physical cash from existence, the better it'll be for the average individual's financial privacy. Once CBDCs become a reality, there will be a clash between crypto and Fiat. That's largely because Fiat will become as comparable as crypto in the future. While banks will ultimately benefit with the launch of their own digital currencies, the average person will still have the choice to choose between Fiat or crypto. With or without physical cash, the world's economy will remain most likely the same as before. Just my opinion

[Salauddin1994]

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.

Yes it usually depends on the thinking power of each person if they have the will they not feel the problem even if there is no electricity they will be ready to move forward depending on their will power now people are no longer ignorant technology is constantly being updated. In that case even if the bank takes time the internet will work faster.

[CODE200]

For that thing to happen that banks will completely phase out cash will take a lot of time to make happen for they are not just the ones deciding whether they must or must not clear out the usage of cash or fiat money. It is in need to take consideration of people patronizing cash rather than using digital money for not all are privileged to have an access on digital money. People will be the biggest element to know if cash will be phased out or not. As long as people are in need to use cash for it is their call of demand, banks cannot do such thing of completely clearing out cash for welfare and wants of the people must be considered if it will be favorable to all and not just on certain groups of people. Once there would be a total adaption and acceptance of digital money and people are not already calling for the use of cash that it exist for nothing, maybe that would be the time that banks can totally clear our physical money.

[abhiseshakana]

Yes it usually depends on the thinking power of each person if they have the will they not feel the problem even if there is no electricity they will be ready to move forward depending on their will power now people are no longer ignorant technology is constantly being updated. In that case even if the bank takes time the internet will work faster.

When we become too dependent on electricity and the internet to support the smooth use of technology, I think we must also prepare a standard operational procedure in the event of a blackout. A high level of dependence is directly proportional to the weakness which is destructive in the event of a disturbance. Starting from the sectors of communication, finance, energy, health, transportation, entertainment, social media, weather forecasts and even cargo will be disrupted if a blackout occurs, and so far there has been no simulation or even guidance if this happens.

[0t3p0t]

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.

For me, I think governments will not stop printing physical money because that is where people are educated or started it is too hard for them to adopt digital cash because I know majority of these people prefer the use of fiat because that is where they find themselves convenient most especially in buying/paying small quantities of goods or services. On the other hand governments are now trying to introduce digital dollar or any other local fiat curreny into the digital assets and for sure it will take too much time for them to fully operate and implement this what we called cashless society.

[AicecreaME]

I don't think we can totally eliminate cash and go totally cashless as a whole. Fiat money existed long before and it has a purpose why it's being used up until today.

Sure, innovation and advancement in technology are really great in terms of bringing convenience to the users, but I certainly think physical money won't be phased out by the banks anytime soon or some time in the future. However, because of being popular and widely used of digital and online transactions, printing of money can possibly decline over the years. Since most likely, people would have access to e-money and online platforms.

Again, it's very ideal to be a totally cashless community. It has its pros and cons which I believe has a thread citing those things. I just honestly don't think phasing out physical money can happen soon because not every country's economic state has the ability to do so, but that's just my two cents. I'm stating based on my knowledge and collective information over the Internet.

[Peanutswar]

For sure it will take a long long year's before they phase out the use of the physical money today not all of the people in the different places are still in the world of technology there are in the rural places does not have an internet connection and does not have any knowledge on the new kind of payment. They are still on the day when we are using physical money also this is the preference of the people as the mode of payment. This is part of their norms, try to show them the use of the digital currency they will not take it because they don't know and they are afraid to take a risk to a thing they don't see in their entire life.

Also, the government won't remove the use of physical money, not all the people are connected yet to modern technology so they stick to the traditional one.

[Ozero]

First of all, I see no need to completely abandon the use of cash. Then we will be completely dependent on various technical means of data transmission, and this is not always acceptable and not always convenient. There will always be cases where cash is the most convenient form of payment.
In addition, it should be borne in mind that it is almost impossible to trace cash, while non-cash forms of payment will be completely controlled by governments. Cash in various forms has been used by people for thousands of years and will be used for a very long time.

[Mometaskers]

Within a decade would probably be the soonest. In the developed country, they already have the requirements - stable internet connection, everyone have smartphones, etc. People just need some nudging to transition.

I can totally see governments endorsing this. I mean even in my country with poor connection the government encourages digital payments due to the WuFlu. It's in their best interest that they can access your money if they want to and lock you out of it if they need to.

[TheCoinGrabber]

Many corrupt countries will be reluctant to adopt such cashless banking, because they know it will be easier for looters to be detected and the government herself is the head of the looter, so it won't pay them.Well technologically developed countries can still implement this in short time, but in my country we have to consider the young and old, illiterates, petty trading... Then, what will happen to those whose job is to hack accounts. to get this, it will take a long time.

I think the contrary. It's easier to make numbers disappear on screen.  I'm sure the corrupt will find a way to move money around without a trail in such a system. It's also a boon for authoritarian governments.

[Maroons]

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.

For me, I think governments will not stop printing physical money because that is where people are educated or started it is too hard for them to adopt digital cash because I know majority of these people prefer the use of fiat because that is where they find themselves convenient most especially in buying/paying small quantities of goods or services. On the other hand governments are now trying to introduce digital dollar or any other local fiat curreny into the digital assets and for sure it will take too much time for them to fully operate and implement this what we called cashless society.

We can't really phase out or get rid of the physical money when there is still people who don't even know how to use a device to manage their cryptocurrencies unless the government find a way to make it easier like having a crypto card for everyone but i doubt that this event will happen soon, physical fiat will be here in the world for atleast a century, let us think about the indigenous people who are clueless about these things, if we go cashless without thinking them how will they adopt to us and same thing goes with poor families

[Janation]

I think in my country it will not happen to phase out physical money even there is already a digital money or credit/debit card. Not all knows how to use cashless method and it is a long process. Not even have a good internet connection. There's a lot to consider before phasing out physical cash.

It will happen, but we don't know when.

It is true that there are a lot of countries that are behind in terms of technology but they are also going forward. Before we even talk about digital currencies there might be the mobile wallets or mobile payment systems that would revolutionize. I don't know if the government or the people as a whole would accept Bitcoin and cryptocurrencies as a fiat since I am just seeing them as an alternative in the process.

[Abiky]

For that thing to happen that banks will completely phase out cash will take a lot of time to make happen for they are not just the ones deciding whether they must or must not clear out the usage of cash or fiat money. It is in need to take consideration of people patronizing cash rather than using digital money for not all are privileged to have an access on digital money. People will be the biggest element to know if cash will be phased out or not. As long as people are in need to use cash for it is their call of demand, banks cannot do such thing of completely clearing out cash for welfare and wants of the people must be considered if it will be favorable to all and not just on certain groups of people. Once there would be a total adaption and acceptance of digital money and people are not already calling for the use of cash that it exist for nothing, maybe that would be the time that banks can totally clear our physical money.

For what I know, phasing out physical cash does not happen overnight. It's a process that could take a couple of years to decades before the whole world begins to transact only with digital currencies. This should give most people some time to adapt themselves to the latest trends in technology. For instance, old people still use and trust physical cash for all of their daily transactions. They're still skeptical about digital payments (either through credit/debit cards or cryptocurrencies), even if the new system provides them a lots of benefits in the long run. The old generation will pass out, paving the way for the new generation to take over the world. This new generation will be already fond of technology, so they'll quickly adopt digital currencies for their own benefit.

For banks to be able to successfully phase out physical cash and launch CBDCs of their own, they'd need to develop their own blockchain network and put it to the test. The last part is important in order to make the system secure and resilient as possible against many undesired situations. Even after CBDCs are rolled out to the general public, it won't completely replace physical cash. Both will co-exist for some time until everyone becomes accustomed to the new monetary system. At least, we'll be able to enjoy physical cash for a long, long time. Just my opinion

[wanted sliter]

Getting rid of physical cash is not feasible because they are convenient and effective immediately. Imagine when a mobile device loses its internet connection or runs out of battery, we cannot use our money. People who don't own a mobile device are even more terrible, cash is more practical. We don't need to do anything but take them out of our wallet and use them immediately.

[Abiky]

Getting rid of physical cash is not feasible because they are convenient and effective immediately. Imagine when a mobile device loses its internet connection or runs out of battery, we cannot use our money. People who don't own a mobile device are even more terrible, cash is more practical. We don't need to do anything but take them out of our wallet and use them immediately.

For what I know, nothing is perfect. Digital currencies have their flaws the same way physical cash does. It'll be up to central banks and mainstream governments to mitigate or reduce issues as much as possible. I believe that banks will find alternative ways for people to interact with CBDCs even if there's no Internet access at all. Satellites, mesh networks, and other means can be used to send/receive digital currencies without the need for an Internet connection. My guess is that central banks will use these methods in order to keep their blockchain networks up and running during outages or natural disasters.

Nonetheless, implementing a digital cash system backed by the government is not an easy task. Physical cash's demise will take longer than we've expected. The new digital cash system (CBDC) could transform the world's economy in a few decades from now. At least we won't have to worry about physical cash being replaced during our lifetimes. Just my thoughts