Is Cash (Paper Money) Still King?

[TheUltraElite]

Go to any local supermarket and see which currency they are completely comfortable with. It is always cash and will be cash for at least a hundred years in the future. Digital payments have go up but it still uses the same fiat currency in the background - just that the payment method is easier and you would not need the cash physically.

In such situations bitcoin is least known in some countries but might be popular in few, but it is not so in some. Things might change in future, but we only represent a small subset of the world's population.

[Porfirii]

This is true, while I can see that there are still some places where you need to spend cash, it is not really that common and we can't really consider it to be something that takes time, we are talking about something that is a bit unique, and for that reason I believe that we are going to end up with a different situation ,so it is not going to be something that takes time for those places, because those places do not have our technology, but aside from that, everywhere else where we have this technology ,cash is losing value.

I do not carry any cash at all for example, and I mean like I do not even have a dollar, not in cash, I have my card and that's enough for me anywhere I go, I do not remember the last time I needed cash, it's been MONTHS since I had even a dollar in cash.

That is in line with the previous discussion because cash is still needed for some places that are not touched by technology, even now when I go to a traditional market to buy food, cash is still the means of transaction used. But if it shifts a little to the city where shopping at the supermarket only requires showing a credit/debit card for payment issues and it happens so easily and quickly. Technology has played a significant role now and there may be many people who no longer put paper money in their pockets when traveling.

This convenience is actually available in the city because for the countryside still need cash and when I want to go home to my village I have to exchange money as a means of transaction. In one or two certain places cash is still needed and the power of seeing for the next few years this will continue to develop, where technology will play a role as a step forward.

In my country I think that this is a trend between, at least, Millenials, who boast that they don't need cash, and wave their cards as if they were smarter than those who use coins and bills

They use them even to for a cup of coffee, not knowing that 1) the vendor has to pay a few cents to Visa/Master card/whatever, which is deducted directly from his profit, and 2) that they are creating data that may be used or sold to their detriment.

The convenience of using cards will be expensive in the long term.

[Frankolala]

Digital payments seem to be in the rise lately. More people are abandoning paper money (cash) in favor of credit/debit cards, and even crypto. Paying with cash is a rarity these days. Especially where I live. I'm beginning to wonder if cash is still King. Countries worldwide are already planning to launch CBDCs of their own. So cash's days are numbered. Am I right?

Feel free to share your thoughts. Thanks.

As a Nigerian living in Nigeria, Cash is still very much the king. I could even add that Cash is the emperor  We pay for 90% of things with cash. Even after my country launched their own CBDCs almost no one uses it. Unfortunately because of how disorganized the country is, citizens have to buy their own currency from cash merchants.

The main reason behind the use of cash by many Nigerians as opposed to digital transfers is because a lot of persons now see the selling of cash as business. I still remembered in the time of cash scarcity how difficult it was just to have access to cash and those who were privileged to where rather selling it with high profits and till date it's now turning to a norm especially now that the festive period is here.

I don't think that it's because people in Nigeria are now selling cash but because Nigerians love spraying cash in occasions. That has made the demand of cash to be high. Another reason is the illiterate market women and petty traders who will tell you that they prefer cash because they don't have bank accounts. I only use cash in places where I cannot make payment digitally.  

[Oluwa-btc]

Digital payments seem to be in the rise lately. More people are abandoning paper money (cash) in favor of credit/debit cards, and even crypto. Paying with cash is a rarity these days. Especially where I live. I'm beginning to wonder if cash is still King.

Yes sure they are still king cause it hasn't been eliminated from the phase of being used as a legal tender but then people tend to abandon it cause of it's devalued state,you can decide to hold on to crypto and digital currency for so long but once it's been exchange to a fiat currency like paper money within minutes you can't give accounts of how it was spent,so this is a more reason to prefer other medium than cash in hand.

[Samlucky O]

Digital payments seem to be in the rise lately. More people are abandoning paper money (cash) in favor of credit/debit cards, and even crypto. Paying with cash is a rarity these days. Especially where I live. I'm beginning to wonder if cash is still King. Countries worldwide are already planning to launch CBDCs of their own. So cash's days are numbered. Am I right?

Feel free to share your thoughts. Thanks.

That is actually true,  as you can see the world is gradually turning into a digital world where everything is done digitally Including payment system. Online payment system has take it shape in another dimension which has reduced the risk of being rubbed physically. Although this phenomenon does not mean that physical cash is not important. It's important but it has limitations to its usage for example booking a flight, payment for grocery shopping, making an international transfer. All this requires you to pay with debit/credit card or cryptocurrency so not in all cases that cash is needed so we have to embrace the new revolution.

[shinratensei_]

Go to any local supermarket and see which currency they are completely comfortable with. It is always cash and will be cash for at least a hundred years in the future. Digital payments have go up but it still uses the same fiat currency in the background - just that the payment method is easier and you would not need the cash physically.

In such situations bitcoin is least known in some countries but might be popular in few, but it is not so in some. Things might change in future, but we only represent a small subset of the world's population.

the use of digital payment has been significantly growing on the digital sector, binance with its binance pay feature has been a great help so far, but can't deny that cash still used anywhere, even we can call those digital cash as just cash but digitalized in an essence they represent cash so at the end of the day cash still dominates.

however things might change with CBDC though, the main reason cash is used widely because it got legitimized by government and issued by the government itself with guaranteed functionality for payments or trades. but since CBDC has those instrinsic characteristics anyway, things might shift.

I'd still believe that crypto still has places though, in the future, i mean, so many people has shifted from using paypal to USDT these days, especially those freelancers.

[michellee]

technological developments also make humans change their payment methods, for example in ancient times we knew the term barter, then later, coins, cash, debit cards, and into the future, namely biometric recognition, CBDC, and chip implants in the body. no payment method will last forever, so maybe in 15-20 years _{or more}, cash will also be replaced by the latest payment methods, which are more sophisticated, effective, and efficient to carry anywhere. but maybe paper money is still circulating, but not as massive as it is today.

You are right. So when the technology develop more than today, we will see many new innovations that will works together with the old methods and people can choose whatever they want. The payment methods will always follow what happen in the business so that will gives more easiness to us as customer to transact with others.

The paper money may exist for some years because we know that  many people still like using this methods and they don't think that is not good for them as right now many new payment method in advance.

[Lida93]

The main reason behind the use of cash by many Nigerians as opposed to digital transfers is because a lot of persons now see the selling of cash as business. I still remembered in the time of cash scarcity how difficult it was just to have access to cash and those who were privileged to where rather selling it with high profits and till date it's now turning to a norm especially now that the festive period is here.

I don't think that it's because people in Nigeria are now selling cash but because Nigerians love spraying cash in occasions. That has made the demand of cash to be high.

It is true about how most Nigerians love spraying cash in occasions just to massage their ego and attract the public's attention to their presence in that ceremony. But the cash that are mainly sprayed are mint notes and not just any used weak note, and those in the financial system takes advantage selling the mints notes high that you can rarely get to withdraw mints from a bank ATM .

Another reason is the illiterate market women and petty traders who will tell you that they prefer cash because they don't have bank accounts. I only use cash in places where I cannot make payment digitally.  

There's a reason behind that excuse from those market women aside some being illiterate, they prefer accepting cash to transfer due to the high rate of online transfer scam (fake transfers) that many of them have fallen victim to from people that came to buy from them. And the only way they could prevent those occurrences is to receive in cash for whatever stuff you're buying.

[Gaza13]

Cash is still king in rural areas, where limited digital payment infrastructure ensures its dominance.
In contrast, urban areas have largely transitioned to cashless transactions for convenience and efficiency.
However, even in urban centers, cash remains preferred for small transactions like street food and parking. Local vendors and small businesses often rely on cash due to digital payment infrastructure limitations. Cash coexists with digital payments, serving as a vital means of exchange in various contexts.Its relevance endures in modern commerce, highlighting its importance alongside digital payments.

I think it is a big task for the central government where you live, to improve access for all its people to make it easier for them to interact or communicate or pay (transfer) systems, of course every central government or regional leader will think about this.

I think with developments like today, almost all groups or levels of society now have smartphones, which allows them to adapt to developments in the times, not just seek knowledge and also adapt to applications such as digital payments. I think as time goes by it is very likely that paper money will decrease in the next few decades however, and it is not in the near future to eliminate physical money all going gradually.

[fuguebtc]

Yes sure they are still king cause it hasn't been eliminated from the phase of being used as a legal tender but then people tend to abandon it cause of it's devalued state,you can decide to hold on to crypto and digital currency for so long but once it's been exchange to a fiat currency like paper money within minutes you can't give accounts of how it was spent,so this is a more reason to prefer other medium than cash in hand.

Cash will gradually be eliminated due to the advancement of technology and the world is moving towards digitization of everything, and this has nothing to do with inflation or currency devaluation. Once cash is eliminated, CBDC will be the alternative or another currency issued by the government and they will also lose value over time. Because they are basically the same, both are issued by the government and can print more whenever they want.


I also believe that cash will be eliminated completely but I don't think bitcoin or cryptocurrencies will be used to replace it. The government will never accept bitcoin or cryptocurrency...or any currency not issued by them. Instead, digital payment methods or CBDCs will be the alternative.

[Sandra_hakeem]

Go to any local supermarket and see which currency they are completely comfortable with. It is always cash and will be cash for at least a hundred years in the future. Digital payments have go up but it still uses the same fiat currency in the background - just that the payment method is easier and you would not need the cash physically.

Paper money is actually the most convenient way of making payment and it is accepted both by the young and old. Outside the supermarket even the local markets where we get foodstuffs and all we won't imagine a granny who doesn't have experience tackling the digital world accept digital currency. First she might even label the payee as a scammer or another name that suits them.

In such situations bitcoin is least known in some countries but might be popular in few, but it is not so in some. Things might change in future, but we only represent a small subset of the world's population.

Bitcoin been the least know in some countries used to be the case when Bitcoin suffered price fluctuation. I doubt if there is any country currently that doesn't know about Bitcoin considering the hike in price experienced decently. I sure Bitcoin is been secretly held by most countries who criticise and set strict regulations around the asset. As it stands the entire population has a good

[Free Market Capitalist]

Even in my country, the rate at which cash flows has reduced. On like before, you can even withdraw more than $1k from the ATM but between last year and this year, new policies have been made and it's only $25 that an individual can be able to withdraw from the ATM. Even if you go into the bank to seek for more cash, they will not still pay you more than $100, except you are a PEP (politically exposed person) that has power. 

Do you mind sharing what country that is?

Anyway, this thread is based on a false premise, which no one is dismantling: that when talking about "cash is king" does not refer to paper money, it refers to paying with money you have, even if it is electronic, as opposed to paying on credit.

Does anyone think Buffet has $325B in bills stashed away?

What’s up with Buffett and his $325 Billion Pile of Cash?

Well, that's just it.

[lizarder]

In my country I think that this is a trend between, at least, Millenials, who boast that they don't need cash, and wave their cards as if they were smarter than those who use coins and bills

Almost all countries experience this kind of thing and the millennial generation indeed shows the most such attitude because they think as if they are smarter because they are influenced by the sophistication of technology. But the funny thing is they are not able to make money, but expect everything from their parents and even they have to be financed in everything.

They use them even to for a cup of coffee, not knowing that 1) the vendor has to pay a few cents to Visa/Master card/whatever, which is deducted directly from his profit, and 2) that they are creating data that may be used or sold to their detriment.

The convenience of using cards will be expensive in the long term.

Regardless of the costs that need to be incurred or the level of harm to the data they use, it does not show anything because all they think about is convenience. That is why most millennials do not understand the impact but all they think about is the ease of use. In fact, their parents have to earn money in a much harder way just to cover the expenses they spend.

This phenomenon occurs everywhere and the use of Visa/Master cards is as if it were a necessity and never thinks about its effects. But back to the essence of the discussion that the use of paper money has indeed decreased every year because there are other conveniences available.

[Unknown Op]

My number one & two choices for storing significant amounts of my net worth are in Bitcoin & real estate. Nothing else comes close to those two but I do like cash. I hate the thought of a CBDC so yes, cash still has a big role to play whilst it is still legal tender. It’s clear they have tried to phase cash out though so be careful. Every day spending money stored at home in cash, yes. But hundreds of thousands of $ stored at home long term, no.

Yes. Paper money is important when you will deal with people because they need money to give You anything. Your knowledge of finance should be good if you want to get the information about paper money and real money. Paper money could be change by government because make different policies and government take action and can change the currency . But from the old days gold is real money which will not lose its price. There are thousands of people who are investing in gold and you can convert it to paper money. Silly people don't invest in anything but intelligent people always try to invest their money because they know that it's price will be good in future. My forefathers did not invest in land in past and now they think that they should buy land but now price of things are very high . The same thing was happen with BTC , people did not take interest in BTC and who took interest , they are billionaire.

[o48o]

Go to any local supermarket and see which currency they are completely comfortable with. It is always cash and will be cash for at least a hundred years in the future. Digital payments have go up but it still uses the same fiat currency in the background - just that the payment method is easier and you would not need the cash physically.

In such situations bitcoin is least known in some countries but might be popular in few, but it is not so in some. Things might change in future, but we only represent a small subset of the world's population.

Hundred years with a paper cash? Are you serious? While they still accept it with groceries and smaller amounts, they won't even accept with larger amounts.

AML laws will prevent all big paper cash purchases in the future, they are already being prevented in some stores. Even banks require a proof of trail for that money when you try to deposit it, and washing that money trough businesses that have accepted paper cash, has been a problem they are now going to deal with.

Even without AML, it's just impractical for stores to hold large amounts of paper cash. It's a security risk, and security for banking that money costs additional money.

Also, when you are talking about things like "it still uses the same fiat currency in the background", i think i need to point out that physical cash is just anonymous representation of fiat money. It's not any more real then money in your bank account. It's same kind of promise of value.

[Accardo]

That is actually true,  as you can see the world is gradually turning into a digital world where everything is done digitally Including payment system. Online payment system has take it shape in another dimension which has reduced the risk of being rubbed physically. Although this phenomenon does not mean that physical cash is not important. It's important but it has limitations to its usage for example booking a flight, payment for grocery shopping, making an international transfer. All this requires you to pay with debit/credit card or cryptocurrency so not in all cases that cash is needed so we have to embrace the new revolution.

Money - both digital and cash depends on what both parties chooses to exchange for goods. They are some businesses that shouldn't show no trace, so people in that transaction will prefer cash. And since it's available the business will go fine. It's just like more people are now into digital transactuon that they forget how huge cash still circulates in the physical market.

[BALIK]

Go to any local supermarket and see which currency they are completely comfortable with. It is always cash and will be cash for at least a hundred years in the future. Digital payments have go up but it still uses the same fiat currency in the background - just that the payment method is easier and you would not need the cash physically.

In such situations bitcoin is least known in some countries but might be popular in few, but it is not so in some. Things might change in future, but we only represent a small subset of the world's population.

Hundred years with a paper cash? Are you serious? While they still accept it with groceries and smaller amounts, they won't even accept with larger amounts.

AML laws will prevent all big paper cash purchases in the future, they are already being prevented in some stores. Even banks require a proof of trail for that money when you try to deposit it, and washing that money trough businesses that have accepted paper cash, has been a problem they are now going to deal with.

Even without AML, it's just impractical for stores to hold large amounts of paper cash. It's a security risk, and security for banking that money costs additional money.

Also, when you are talking about things like "it still uses the same fiat currency in the background", i think i need to point out that physical cash is just anonymous representation of fiat money. It's not any more real then money in your bank account. It's same kind of promise of value.

What you say is completely opposite to where I live. I live in a rural area and people still prefer using cash over any form of payment. I remember 4 months ago when we harvested the crop (durian), most farmers did not like bank transfer or accept payment method. Most of them wanted to receive it in cash and that inadvertently caused a temporary cash shortage in my locality. But it didn't take long, within just two days, local banks had raised enough cash for traders and residents to make transactions.

Not to mention, the grocery stores or supermarkets in the area never complain or refuse to accept large cash payments, I have never seen that happen. So with what's going on around me, cash is still king.

The government is still printing tons of money and pumping it into the economy so it would be strange if they passed a law banning the circulation or use of large amounts of cash.

[justdimin]

In my country I think that this is a trend between, at least, Millenials, who boast that they don't need cash, and wave their cards as if they were smarter than those who use coins and bills

Almost all countries experience this kind of thing and the millennial generation indeed shows the most such attitude because they think as if they are smarter because they are influenced by the sophistication of technology. But the funny thing is they are not able to make money, but expect everything from their parents and even they have to be financed in everything.

Millennials are people who are born between 1981 and 1996, are you sure, you are talking about the same generation? I mean you might be talking about Z generation, which is 1997 to 2012, making the oldest one 27 years old, which some of them must be making some money but the youngest one 12 years old, so surely they work with parents money. But when we are talking about Millennials, that means oldest one is 43 years old, and youngest one is 28 years old, so maybe you are talking about Z generation instead?

I mean because the idea that someone aged between 28-43 not making money and using parents money makes no sense to me, I have bunch of friends, and know hundreds more, at that age gap, and literally none of them use their parents money, they are all working, and they all use credit card because why use cash? We literally don't need it, useless to carry around that much banknotes when you could just use a card instead. Interesting hatred filled approach you have there, hopefully you will feel more calm about it.

[Smack That Ace]

Feel free to share your thoughts. Thanks.

Cash may no longer be king because of the advent of digital currencies and cryptocurrencies, and people are increasingly preferring them over cash because of the convenience they offer. But I don't think cash will be completely eliminated in the coming decades. Many countries in the world are not ready for the cashless era yet because as far as I know, the world's population with access to the internet and smartphones is not yet 100%. So eliminating cash will face many challenges and cause difficulties for those without access to the Internet.

Perhaps because you live in a developed country and in big cities, cashless payments are becoming more popular. But if you come from poor countries and rural areas, you will find that cash is still preferred.

[TheUltraElite]

Hundred years with a paper cash? Are you serious? While they still accept it with groceries and smaller amounts, they won't even accept with larger amounts.

Large or small, it is still the first mode of payment in majority of shops out there. Digital payment systems with fiat have come up but bitcoin is nowhere to be seen.

AML laws will prevent all big paper cash purchases in the future, they are already being prevented in some stores. Even banks require a proof of trail for that money when you try to deposit it, and washing that money trough businesses that have accepted paper cash, has been a problem they are now going to deal with.

It might be so, but AML has been here for years now, and still people use paper cash and sometimes digital payments. This problem will exist and the governments are slow to control it.

Even without AML, it's just impractical for stores to hold large amounts of paper cash. It's a security risk, and security for banking that money costs additional money.

Digital payment modes are there, most of the younger generation have adopted it, but they have not started using bitcoin. So cash is still king. Of course I am using the term cash to imply all sorts of fiat money, physical or digital.