Is Cash (Paper Money) Still King?

[Synchronice]

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.

You know, the situation is strange around that subject. For example, everyone thinks that Germany is advanced, developed and powerful nation and if you ask a random guy, they might think that everything is digital here but in reality, the majority of people pay with cash. I've been in developing countries and I was shocked when I payed for bus with visa card. So, things are different everywhere but cash is still the king because not every shop has POS terminal and also, these terminals charge additional fee, so cash is also preferable method for shop and business owners.

I hope that cash's days aren't numbered because CBDC is a huge disaster in terms of financial independence. Only the time can tell us what will happen.

[Abiky]

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.

Duh. Old people often use cash to pay at a supermarket. It would be dumb to avoid cash payments altogether. A full transition into the digital era is going to take a little longer than expected. Young people are already used to making digital payments, so cash's days are numbered. This is the future.

What concerns me is CBDCs' lack of privacy. Luckily for us, there will be alternatives to help us resist government surveillance. I wonder what will criminals use once cash goes extinct? Monero or physical gold/silver coins? If there's no Internet or power, the last choice would be best. I guess privacy and freedom will win after all.

[lizarder]

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.

Regardless of the term millennials or generation Z, what I mean is more about children whose credit card usage is still funded by their parents and I happen to live in an area that has many campuses so I see that almost most of them already have ATM cards and some even use credit cards only for needs that are not too important. The term generation Z is much more appropriate because they have not been able to make money and are still focused on campus to seek knowledge funded by their parents, but what I want to say is that the use of credit cards and ATMs is now very dominant among them.

Even when going out for coffee they use QRIS payments and they rarely pay using cash. Regarding the generation 28 and above, it is indeed unreasonable to still be funded by their parents because they should be able to earn their own money, but under that age I still see many people who are still dependent on their parents even though there are one or two people who are already financially independent.

[Faisal2202]

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.

Cash is rarity only in developed countries, In my country we still use Cash and TBH once I went to a famous mobile brand for repairing and I did not asked them if they have debit, or digital payment system as I thought they are in a big city, and a big brand how can they not have one. Well after repairing, when I asked them to give me their digital accounts to pay they said we only accept cash and I was like what!

Well, they repaired my phone, so I had to search for a bank and after 30 minutes I came back to pay the money it was so embarrassing too not only for me I think they should be embarrassed as well. In my country digital payment sytem, credit/debit etc. is rare while in yours cash is rare we are not same haha. I hope with time our country will adopt this and speaking of buying and selling in crypto (in your dreams).

[Wonder Work]

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.

The world is moving forward quickly regarding technology, but even though it is moving forward, people cannot get involved with technology so quickly. Young people are especially moving forward in technology because they can understand everything quickly, however, those who can't get involved with technology so quickly feel comfortable using paper money. It is okay that paper notes will go away at some point, but it is not possible that it will go away very recently because everyone has not yet been involved with modernity at the same time. However, it is safer to transact digitally than paper money.

When we have to transact in large amounts of paper money, it becomes very risky to go anywhere with our paper money. It is also difficult to carry it, so it would be best to move forward with technology and transact in a digital way rather than paper money, but it is not possible so soon; it will take a lot of time.

[WatChe]

Cash is rarity only in developed countries, In my country we still use Cash and TBH once I went to a famous mobile brand for repairing and I did not asked them if they have debit, or digital payment system as I thought they are in a big city, and a big brand how can they not have one. Well after repairing, when I asked them to give me their digital accounts to pay they said we only accept cash and I was like what!

Well, they repaired my phone, so I had to search for a bank and after 30 minutes I came back to pay the money it was so embarrassing too not only for me I think they should be embarrassed as well. In my country digital payment sytem, credit/debit etc. is rare while in yours cash is rare we are not same haha. I hope with time our country will adopt this and speaking of buying and selling in crypto (in your dreams).

To avoid such situations I ask retailers in advance whether they accept digital payment or not, specially when I don't have cash in my hand. In my country (Pakistan) digital payment is getting acceptance and I can buy bakery items, pay for car repair through mobile payment services. There are few exceptions where retailers don't accept digital payment but I am sure with time they will switch to digital payment methods because it's the need of the hour. If government can provide incentives to retailers who accept digital payment systems then we can have an ecosystem where there is no cash and all payments will be made digitally.

[l99l]

I don't think paper money will be completely discontinued, some people in some countries still use paper money or accept paper money.
There is more digital money use in developed countries, the infrastructure is sufficient, the necessary transactions can be done faster and easier, the city is in a suitable structure for the payment system once.
CBDCs will be released soon, alternative paper money will be in circulation for a certain period of time, maybe longer. Certain features of paper money still make it important, fast and easy payment, anonymity.
Or can easily access it when there are power outages or digital system failures.

[eightdots]

Cash is rarity only in developed countries, In my country we still use Cash and TBH once I went to a famous mobile brand for repairing and I did not asked them if they have debit, or digital payment system as I thought they are in a big city, and a big brand how can they not have one. Well after repairing, when I asked them to give me their digital accounts to pay they said we only accept cash and I was like what!

Well, they repaired my phone, so I had to search for a bank and after 30 minutes I came back to pay the money it was so embarrassing too not only for me I think they should be embarrassed as well. In my country digital payment sytem, credit/debit etc. is rare while in yours cash is rare we are not same haha. I hope with time our country will adopt this and speaking of buying and selling in crypto (in your dreams).

To avoid such situations I ask retailers in advance whether they accept digital payment or not, specially when I don't have cash in my hand. In my country (Pakistan) digital payment is getting acceptance and I can buy bakery items, pay for car repair through mobile payment services. There are few exceptions where retailers don't accept digital payment but I am sure with time they will switch to digital payment methods because it's the need of the hour. If government can provide incentives to retailers who accept digital payment systems then we can have an ecosystem where there is no cash and all payments will be made digitally.

It is necessary to be prepared for such situations in advance. Before shopping, it is necessary to learn whether cash or card payment is available. Businesses should also be prepared for similar situations and increase their payment method options. In many countries, businesses have more than one payment method and customers do not have any difficulty in this regard, but in some countries, cash is used too much and there is no card payment option.

Governments should make things easier for their citizens in such matters. Governments should tell businesses to increase their payment methods and should check whether they are implementing these methods. Countries that keep up with technology can develop faster. Countries should keep up with technology and offer many options for their citizens. Carrying cash is not easy today and shopping with a card provides great convenience.

[Webetcoins]

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.

I disagree with this argument with it can happen but going to take very long time with many countries are still far away from technology and use of these digital methods which are coming and developing most probably if we have changes these are going to take very long time we will be not able to have these changes in our lives paper money could be king for long time I am sure changes are essential and things can happen but not as currently we are talking.

Having use of bitcoin and cryptocurrency is also not easy with it's going to be taken very long time in many countries we have peoples those never have any idea about them so they are also going to take long time for understanding and having changes with digital or crypto in developing countries we are watching changes, but these are also not as we are talking or having in commercials or movies it's surely time of change but paper money is still king for long time.

[shogun47]

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.

You are differentiating between cash as a payment method and fiat in general right? Talking about cash, it's going down a lot I think for so many reasons. The days are numbered when restaurants and hairdressers and butchers didn't take cards. Everyone takes cards, everyone takes Google Pay or Apple Pay and when you purchase something online, there is Amazon with their own payment methods or PayPal. The reasons to carry cash with you decreased tremendously and payment providers like Visa and Mastercard or pushing for that development through lobbying because they take huge cuts in relative terms from every purchase made.

Then there are laws limiting larger cash purchase, in some countries bigger bank notes are ruled out, and many other reasons why the cash payment volume is going down. I think for most consumers it is about ease of use as well.

This is by the way not meant to say that I am positive about it. I am not and I still do carry some cash in some circumstances, but it's certainly become less over the last 15 years with every year passing by.

[ChiBitCTy]

Yeah, as of right now, there’s no question that cash is still king. The US dollar is still the reserve currency of the world and that is not changing anytime soon despite what anyone might tell you otherwise. Now there have been of course, major breakthroughs with bitcoin that make it an asset very intriguing in this space. Where will that head? Where will things go? It’s gonna be interesting to continue to follow the saga.

[CryptoBuds]

Yeah, as of right now, there’s no question that cash is still king. The US dollar is still the reserve currency of the world and that is not changing anytime soon despite what anyone might tell you otherwise.

Fed is not interested in bitcoin or cryptocurrencies and they have no intention of implementing a CBDC in the near future, they are still focused on protecting the USD. They are still the regulators of the world economy through the US dollar and their monetary policies.
I agree with everyone that online payment trend is becoming more and more popular but you are right, as long as USD is still the main currency in world trade and the world's reserve currency. Cash is still king.

If we pay attention, we can see that most countries have plans to launch CBDC in the future. But the United States, specifically the Fed has not yet thought about this idea, which shows that they are not ready for a cashless world.

[WatChe]

It is necessary to be prepared for such situations in advance. Before shopping, it is necessary to learn whether cash or card payment is available. Businesses should also be prepared for similar situations and increase their payment method options. In many countries, businesses have more than one payment method and customers do not have any difficulty in this regard, but in some countries, cash is used too much and there is no card payment option.

Governments should make things easier for their citizens in such matters. Governments should tell businesses to increase their payment methods and should check whether they are implementing these methods. Countries that keep up with technology can develop faster. Countries should keep up with technology and offer many options for their citizens. Carrying cash is not easy today and shopping with a card provides great convenience.

One main reason why it's difficult to carry cash is that inflation rate has gone up, as a result prices of different products have gone enormously  up. So you need to have a lot of papers in your pocket if you want to do shopping with cash. Moreover, in my country (Pakistan) government has imposed 15% GST if payment is made through cash while 5% GST will be charged in case you pay via card. Defiantly everyone prefers to pay with card to save GST and it benefits government to keep track of payments. I am sure situation is not different in other countries also.   

[Abiky]

I don't think paper money will be completely discontinued, some people in some countries still use paper money or accept paper money.
There is more digital money use in developed countries, the infrastructure is sufficient, the necessary transactions can be done faster and easier, the city is in a suitable structure for the payment system once.
CBDCs will be released soon, alternative paper money will be in circulation for a certain period of time, maybe longer. Certain features of paper money still make it important, fast and easy payment, anonymity.
Or can easily access it when there are power outages or digital system failures.

As long as there are countries with limited access to power and the Internet, cash (coins and paper money) won't be going away soon. Developing countries are the ones who use cash the most. Digital payments are only the norm in rich and developed countries (except China). It won't be long before developing countries catch up with the latest innovations in the Fintech space.

I guess it will take decades before cash is phased out. The transition to CBDCs is inevitable. Especially when digital currencies gives governments more power/control over the economy. They will justify the switch by saying CBDCs will help tackle criminal activities for good. But I doubt governments will succeed. Criminals will just look for other alternatives that are "off-grid". Something like Monero or physical gold/silver coins and/or bars. But that's another story. Let's all enjoy cash while it lasts.

[pawanjain]

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.

I live in India and most of the shops in here use digital payments like UPI (Unified Payments Interface).
Many people might know what an UPI is but for those who don't, it is as simple as scanning a QR code and entering the PIN to it to make the payment.
I rarely carry any cash with me as I make all my payments in UPI and the only time I carry cash is when I travel to any other place.
The only reason is sometimes there are network issues and may be UPI won't work during that time.
So through out the year, 98% of my payments are in UPI mode only and I can say that the usage of paper money is decreasing drastically.

[Cookdata]

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.

Is the world still a place with CBDCs, the last I read a headline about it was in 2023. I'm not really sure if CBDC is the reason why we are going digital but policy changes are making business go digital. Last year, my country was trying to go cashless policy because the government was trying to mop the floor of the too many circulation of money supply but that didn't last upto 3 months before it was reverse as many people couldn't cope with the policy.

However, the government saw a huge influx of digital transactions it has not experienced in many years, till now some business are still doing digital transactions and also accept fiat as alternatives for people that don't have means to digital. The government abandoned the policy simply because they were not prepared for other people, like the people without internet access, it was disastrous for them. Not everyone can digital at once.

[o48o]

-cut-
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.
-cut-

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.

AML laws have been developing, and are changing radically. And while travel rule might not yet be a thing in some countries, changes are coming. Reason why they might not have an effect where you live is, because we are in transition phase, so it takes time to see results of these new regulations, don't be surprised when you suddenly do.

Removing ability to pay large amounts with paper money is slow procedure that can't be rushed. Suddenly changing rules could be catastrophic as supply chain isn't ready for it.

Also didn't even mention bitcoin. I was separating paper money use from fiat money use, because even when they are representing the same thing, cash money is anonymous. So there are obvious differences how they want to deal with paper money compared to digital fiat money.

[Alone055]

Also, digital payment systems are linked to your identity. If we got rid of cash, the government and data-hungry companies would have an easier time spying on our daily lives.

This is why Bitcoin and some other cryptocurrencies have gained so much popularity: they are digital payment methods that provide ease and convenience while not being linked to your identity unless you are using a wallet that is directly linked with a centralized exchange that has your identity. This is also the reason why governments and traditional financial institutions such as banks are against Bitcoin: it promotes anonymity and financial privacy, which they don't like.

However, even though using cash doesn't reveal how much you are spending on specific things in certain days, they still have all the details about your finances because you get cash from somewhere. You will probably take the cash out of the bank either through an ATM or directly from a branch, and they know how much you have debited and credited within a month, etc.

So, with the current financial system, our financial activities are monitored, with or without cash being used.

[CK485]

Is the world still a place with CBDCs, the last I read a headline about it was in 2023. I'm not really sure if CBDC is the reason why we are going digital but policy changes are making business go digital. Last year, my country was trying to go cashless policy because the government was trying to mop the floor of the too many circulation of money supply but that didn't last upto 3 months before it was reverse as many people couldn't cope with the policy.

However, the government saw a huge influx of digital transactions it has not experienced in many years, till now some business are still doing digital transactions and also accept fiat as alternatives for people that don't have means to digital. The government abandoned the policy simply because they were not prepared for other people, like the people without internet access, it was disastrous for them. Not everyone can digital at once.

not everyone has access to the internet network, although efforts have been made to make it even, by using digital there are certain difficulties and there are also conveniences that are obtained, although cash is an option, and digital transactions can create secure payments, the reality of CBDC requires adjustments and possibilities gradually and it depends on its use in each country that determines.

[Abiky]

Is the world still a place with CBDCs, the last I read a headline about it was in 2023. I'm not really sure if CBDC is the reason why we are going digital but policy changes are making business go digital. Last year, my country was trying to go cashless policy because the government was trying to mop the floor of the too many circulation of money supply but that didn't last upto 3 months before it was reverse as many people couldn't cope with the policy.

However, the government saw a huge influx of digital transactions it has not experienced in many years, till now some business are still doing digital transactions and also accept fiat as alternatives for people that don't have means to digital. The government abandoned the policy simply because they were not prepared for other people, like the people without internet access, it was disastrous for them. Not everyone can digital at once.

The lack of Internet access is something governments need to fix if they want to move forward with phasing out cash for good. I believe the only way to do this is by making use of satellites where everyone can stay connected at no cost (free). The goal is to control our society. You might think you're benefitting from free Internet, digital payments, and smart devices. But behind it all, there's a government who's gathering your data and personal information to control you. Only possible when everything is "digitized". And cash (coins and paper money) belong to the analog world. It's harder to track/trace and harder to confiscate.

I'd say CBDCs are inevitable. People living in developing countries are lucky right now. Especially when digital payments aren't even mainstream there. Enjoy cash while it lasts. The longer it takes to launch CBDCs, the better. We all want privacy and freedom, right?