Is it time to think of cash and bank deposits as different currencies?

[lumeire]

I think nature is different. Cash is anonymous and has immediate value remaining money in a bank account that may belong to the bank. If you want to make a large amount of money transaction, a bank officer will call you and they may ask you to come to the bank to make the transaction. When there is too much money in your bank account, you become a target for government audits.
The most important thing is the liquidity and safety we can have stablecoins with staking capabilities.
https://bitcoinist.com/stablecoin-staking-is-finally-possible/

The returns on the stable coin staking will also become less as more and more people join the staking process and also this don't seem too good for me as these stable coins are always centralized and can also fall any day. Running master nodes and investing and then staking the POS coins feels good for me and I am searching for new cryptocurrencies that are of low entry point and are having a good future also. Staking stable coins feels the same way as you with your money in the bank accounts but having more risk of hacks.

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[Rengga Jati]

Can the government really limit the withdrawal of their deposits on the bank? Of course, in fact, yes. Moreover, if it is concerned with the bankruptcy. There will be limited to withdraw, moreover tot eh cash.
Here, we can find out many e-wallets that is used in the country. The use of this can really reduce the use of cash money for transactions.

But let's see, if they limit the withdrawal and they start to make cash as soon as possible, will they really run out the cash?
It may probably encourage the emergence of the cryptocurrency in every country.

[Shasha80]

I agree that cash and bank deposits are indeed different currencies, therefore almost all banks in the world encourage customers to do so
deposit. And make various ways so that the amount of bank deposits is greater than the cash money in circulation. One way to limit the
amount of withdrawal of the bank deposit, therefore we usually cannot withdraw all the money we have in our bank account. Because
the bank uses the customer's money in the bank deposits to be managed into the bank's profit. Usually bank deposits are used to make
loans to several clients. So the amount of interest on bank loans must be greater than deposit interest.

[wiss19]

Where did you see or hear that the government wants to replace the current monetary system with pseudo cryptocurrency? I have never heard that, not in my own country, and I don’t think that there is any government around the world that has plans to replace their conventional currency with cryptocurrency.

The only country talking about cryptocurrency was China but no one is talking about that any longer, and when they release their cryptocurrency it’s likely going to be like other countries that created their cryptocurrency and abandoned it. Bitcoin is like the main thing people are interested. And anything that’s coming from the government should still be considered as fiat, if they create cryptocurrency they are going to link it with banks.

[shoreno]

Where did you see or hear that the government wants to replace the current monetary system with pseudo cryptocurrency? I have never heard that, not in my own country, and I don’t think that there is any government around the world that has plans to replace their conventional currency with cryptocurrency.

i have seen a topic on this forum before , it was an asian country that plans to digitalize thier payment system and they also create a crypto of thier own so they are prolly going to use this crypto for the first time instead of known cryptos .

and if this fail maybe they will re consider adding  known cryptos like btc . as we all know that btc and known cryptos are still in favored by the local people .

[mersal]

Can the government really limit the withdrawal of their deposits on the bank? Of course, in fact, yes. Moreover, if it is concerned with the bankruptcy. There will be limited to withdraw, moreover tot eh cash.
Here, we can find out many e-wallets that is used in the country. The use of this can really reduce the use of cash money for transactions.

But let's see, if they limit the withdrawal and they start to make cash as soon as possible, will they really run out the cash?
It may probably encourage the emergence of the cryptocurrency in every country.

But now banks are not going to limit their withdrawals because cash flow is very important for any economy to get recovered from this pandemic crisis so how they are going to stop the circulating supply? But as a user many people are interested in something which doesn't have depreciating value at the moment and gold will be better option than any other thing for now so most of the withdrawals are for investments in my opinion.For the bankruptcy issue banks might increase their minimum balance limit so they won't go bankrupt.

[Gozie51]

So the amount of interest on bank loans must be greater than deposit interest.

Not in all situation or not in all cases. This is a mechanism that government can use to regulate money in circulation maybe if the government want to reduce hardship, inflation etc or to discourage borrowing. Like increase in loan interest will increase the amount of money in the back and decrease in interest will make to be reduced in the bank because more people will come borrowing.

[el kaka22]

World has changed so much in the past 30 years, we could easily say that we are living in a world where cash doesn't even exists anymore. Sure we all use cash time to time but think of the frequency of you using cash, literally banknotes over the times you use your card.

I can easily say that banknotes are less than 5 of what I spend, over 95% of my expense is paid with cards or even via bank transfers because those are a lot easier, paying with cash is not the hard part, you give them some paper and they give you some paper back it is quite easy concept and definitely easier and quicker than using a card with a machine and putting pin and so forth which takes more time, however the protection of cash is the hard thing, think about carrying all that cash around or keeping it at home, it is riskier.

[Mauser]

World has changed so much in the past 30 years, we could easily say that we are living in a world where cash doesn't even exists anymore. Sure we all use cash time to time but think of the frequency of you using cash, literally banknotes over the times you use your card.

I can easily say that banknotes are less than 5 of what I spend, over 95% of my expense is paid with cards or even via bank transfers because those are a lot easier, paying with cash is not the hard part, you give them some paper and they give you some paper back it is quite easy concept and definitely easier and quicker than using a card with a machine and putting pin and so forth which takes more time, however the protection of cash is the hard thing, think about carrying all that cash around or keeping it at home, it is riskier.

For us consumers electronic payments are awesome, we don't have to carry big wallets around and have it much easier to get a summary of our spending and earnings. Also the risk of people stealing our money is much smaller with electronic wallets than the usual pocket wallet. Even if someone gets access to our bank accounts, the loss is insured and we don't suffer any damage.

The only problem I see is that Cash is still king, especially when dealing with builders or salesman. With electronic payments it's getting almost impossible to avoid taxation where as when paying with cash it's much easier to cheat the government. When renovating the kitchen I got asked a few times if things could be done of the books and it would save me some money. Black labour is still a big issues in todays time.

[el kaka22]

^Cash is king only in small sectors and few stuff in life, I still pay cash to taxi for example and most of the world pays cash to taxi, so there are small places of life where you do pay cash but it is not common, if you check you will realize that I am right, only 5% of your money spent with cash, the rest is actually spent with card or whatever other digital stuff is, that is why I keep saying that there is really no way that people should consider cash as an important thing anymore.

I feel like if I want to go cashless forever, I could actually do that, would I have trouble time to time? I sure would, but there is really not that many places that doesn't accept my card so unless something unexpected happens like electricity going out or whatever we might have a trouble, aside from that you really wouldn't need it.

[bearexin]

Fiat is like the basic or the main thing, every other thing is just an asset that has a value based on fiat. So basically Bitcoin and fiat are two different things right from time, and Bitcoin is not a currency, fiat is the currency. And when you say Cash, cash is also fiat and fiat can as well be used through digital means such as PayPal and your bank’s mobile app or internet banking.

Where did you see the news that the government is trying to reduce cash or something? That’s not true, I have not seen anywhere they are trying to do that. Cash is the main money and in most places you will go that’s what’s being accepted. As for Bitcoin, you can only make use of it online.

[iv4n]

We can't think of cash and bank deposits as different currencies, simply because they have the same origin! They came from the same place, the same rules apply on both. $100 in cash is the same as $100 on your card, and tomorrow if dollar lose value (or rise) your cash/card money will still have the same value. The future world is going to be "online world", it's happening now as we speak, and in future it will be if you are not online it's like you are not alive. Crypto is alternative now, but tomorrow will be the main medium of exchange, whether you like it or not. Technology is taking primate in all sectors, and what future generations will do is to push all this to another level!

[fiulpro]

When you are using a bank locally where you can withdraw the money without paying any fee to the bank and the ATM then for sure they can be pegged for 1:1.

But , let me tell you something about using banks globally. If you are withdrawing the money 💰 in some other country then you do have to pay a considerable amount of fee , sometimes it's 10$ , sometimes even more or less depending on where you are withdrawing and how much.
It normally includes : currency exchange rates+atm charges+ bank charges.

Therefore if someone asks me if they can pay in my bank or give me cash , I would prefer cash while dealing with the global transactions.

BUT

If I am going to use a local bank then it's a whole different story . Apparently the money in the bank are classified as *white* while the ones in the hand are a little risky if you do have a lot. Therefore if I am using a local bank and do have a substantial amount of money then of course the bank one would be way better.

Therefore I do believe we have various situations here.

[Larelel]

It seems to me that Jet Cash has mixed negative interest rates in some countries like EU with other bank products. If your bank is charging you for keeping your money with it, then just transfer your funds into other assets, i.e. Gold or BTC

[hongchao123]

Not your keys, not your crypto. Not your cash, not your money. Same system here, especially after zero reserve system instead of fractional

[jostorres]

I don’t really know about that, but in some situations people tends to be in need of cash. Just like when there was a lockdown, a lot of people were rushing to the banks to withdraw more cash and store at home, to the extent the government was trying to limit how much they can withdraw from the banks.

There are other payment methods, but there are places that are not really technologically advanced so they can’t make use of these other payment methods. It’s just like when I go to the market to buy foodstuffs, none of them are accepting cryptocurrency or any of these online payment methods, all they go for is cash. So people will definitely be in need of cash more than any other payment method.

[barbara44]

They could totally be the same thing if the governments finally came to senses and told the banks that they have to have exactly reserves for exact moves, which means if banks do anything, they have to actually have the physical cash on their vaults to do that thing, they can't just have 10 bucks on vault and give 100 bucks loan, and 100 bucks investment, that is 10 to 200 difference, but if they have 10 and give out 10 and forced to stay in that range, that means there will always be the same amount of money as what digital numbers suggests.

This is why I believe it is totally possible that we could go back to both things meaning the same thing, but we just need to convince the politicians to make the regulations a bit more harsher on the banks if we want that to happen.

[Kasabus]

I don’t really know about that, but in some situations people tends to be in need of cash. Just like when there was a lockdown, a lot of people were rushing to the banks to withdraw more cash and store at home, to the extent the government was trying to limit how much they can withdraw from the banks.

There are other payment methods, but there are places that are not really technologically advanced so they can’t make use of these other payment methods. It’s just like when I go to the market to buy foodstuffs, none of them are accepting cryptocurrency or any of these online payment methods, all they go for is cash. So people will definitely be in need of cash more than any other payment method.

Cash and bank deposits are totally the same because they are still both using the fiat system. Since we are facing a pandemic at this moment, it is already expected that people would prefer to have their cash onhand than going out from their homes and do bank deposits. There might be less deposits at this time due to lockdowns because people are totally in need of cash to sustain their basic needs for their own survival.

[hulla]

Is not yet the time to see cash and bank deposits as different currencies cause the government are yet to create a digital national currency which will limit the amount of new cash printing and use of physical fiat currency. However, Bitcoin and others crypto adoption maybe slow now but will definitely increase in the future when people totally understand it benefit and was what happened when the Internet was first introduced then people dont want to use it, now we cant do without it.