Can privacy coins replace cash in the future?

[Abiky]

Cash (coins and paper money) is about to become history soon. Digital payments have been on the rise, ever since the COVID-19 pandemic took the world by storm. With stablecoins, CBDCs, and cryptocurrency payments the norm, cash's days are almost over.

That makes me wonder, what will serve as the ideal replacement of cash? In today's interconnected world, I would say privacy coins. Especially those with mandatory privacy (non-optional) such as Monero, Grin, and BEAM. I know cash has the benefit of being used offline, something which crypto can never "beat". Even though it's possible to pay with crypto offline (physical bearer asset like an OpenDime or Tangem), you'd need Internet access at some point to "finalize" the transaction on the Blockchain. I've thought about privacy coins being the ideal replacement of cash due to their fungible nature. Perhaps, there's another alternative?

Feel free to share your thoughts/opinion, below. Thanks in advance.

[TastyChillySauce00]

Privacy coin will be great but we all know how scrutinized they are, even governments are pushing for privacy coins delisting it speaks a lot that there will be confrontation from the government.

As of now it seems governments are pushing stablecoin, japan is also pushing one called JPYC despite US with its massive USD domination in the stablecoin sector.
For now I think it's gonna be either BTC or stablecoin. The two will be the most utilized. Unless somehow governments support privacy coin.

[asriloni]

I think you must be delutional in believing those privacy tokens as ideal replacements for cash. Those privacy tokens were even getting banned by the regulators. How can they be used as cash replacement with no regulator approval?

Apart from that privacy tokens are also lack of liquidity. It's caused by those privacy tokens keep being delisted from cex due to the regulatory concern. I know you're a fan or privacy tokens, but accept the reality if it will never happen.

[hugeblack]

In terms of scalability, the future of privacy coins will not be bright. CBDCs will be a preferred option for countries where all transactions can be controlled, taxes collected, and assets frozen without the need for a third party.
The scope for freedom will lie in Bitcoin and highly transparent cryptocurrencies, not in privacy coins, which will be attacked

[Odohu]

Like some people rightly said, privacy coins will never be allowed to operate freely, they will constantly face attack from the establishment who want to control everything. You can see the ordeal of XMR and how several exchanges are delisting it from their platform for no justifiable reason, that is the sad reality of privacy coins. Nevertheless, no matter what happens, they can only discourage a handful of people from using privacy coins, those who cherish their privacy will always stick with privacy coins but I doubt there will ever come a time when it will dominate as a currency that is accepted by merchants and people like we have BTC and fiat now.

[MArsland]

In the midst of centralization, privacy coins are certainly the last line of defense, but we don't know how long this will last because Monero continues to be pressured to comply with regulations.

In terms of future use, governments will definitely maintain control over cash replacements and continue to promote CBDC, while privacy coins will face many obstacles and, whether we like it or not, we will be forced to follow government policies.

[taufik123]

It looks really great when you hear about privacy coins, But privacy coins like Monero, Grin, BEAM don't even have a lot of fans, It's more likely to choose Bitcoin as the top crypto right now.
But when it comes to replacing cash in the future, I think cash will still be replaced by digital Fiat, which is currently more widely used.

Only the migration of cash banknotes from the digital version, is faster and easier to use but certainly does not have full control as it will be related to the bank used.
Fiat and crypto will still be used side by side, crypto may just be another payment option and fiat will still continue to be used.

[Ivystar5]

Bitcoin is the last privacy oriented coin that will ever exist hence the future will only have bitcoin as the privacy coin and no new privacy or already existing privacy coin will have a ground for survival on future, just in today's world we know how the major privacy coin is being treated and threatened everyday by the government (Monero) then with that shall we expect any privacy coin to have a ground in today's world not to talk of the future.

[Webetcoins]

Abiky is legendary and someone I trust, but I have seen very few people being this wrong in my life.

First of all, digital payments are on the rise in the sense that people pay online, but with still fiat. CBDC was something governments thought, but haven't done yet, stablecoins are only ones that grew but that is still not used for payment at large at all.

Crypto payments are not even 1% of payments made online, let alone the world. And top it all off, privacy coins are just getting banned everywhere, from exchanges, from governments, from whole nations.

So when you think of all these facts, it is clear that OP is wrong, and no privacy coins will not replace cash in the future, not now, not ever.

[andywolfer]

Interesting point. Privacy coins do come closest to cash in terms of fungibility and anonymity, but adoption and regulation make it tricky. Maybe the future will be a mix: CBDCs for mainstream use, and privacy-focused crypto as the “digital cash” for those who value freedom. Cash might fade, but the need for private, peer-to-peer money won’t go away.

[JeffBrad12]

Impossible for privacy coin to replace cash in the future where even now using privacy tool will get your account frozen. Those mixers will insta freeze your account the second you deposit to your favourite CEX, there's just no way privacy coin can get through this problem implicating AML.

Using Monero will also do the same thing to your account, it increases your risk in their system therefore doesn't seem plausible. The future is always centralized except something resilience like bitcoin that can't be get rid off no matter what.

Maybe if there's privacy in the future, it will be shielded stablecoin transaction that can't be peeked by random stranger but the government still have control of. Basically private ledger owned by the issuer to retain transactions data while still keep privacy to some extent.

[Taskford]

Cash (coins and paper money) is about to become history soon. Digital payments have been on the rise, ever since the COVID-19 pandemic took the world by storm. With stablecoins, CBDCs, and cryptocurrency payments the norm, cash's days are almost over.

That makes me wonder, what will serve as the ideal replacement of cash? In today's interconnected world, I would say privacy coins. Especially those with mandatory privacy (non-optional) such as Monero, Grin, and BEAM. I know cash has the benefit of being used offline, something which crypto can never "beat". Even though it's possible to pay with crypto offline (physical bearer asset like an OpenDime or Tangem), you'd need Internet access at some point to "finalize" the transaction on the Blockchain. I've thought about privacy coins being the ideal replacement of cash due to their fungible nature. Perhaps, there's another alternative?

Feel free to share your thoughts/opinion, below. Thanks in advance.

That's to much assumption for Privacy coins and imagine how government deal with this coins so for sure that this situation will not gonna happen.

Maybe there are people really just like the idea of privacy since lots of people does not like to be tracked that's why maybe they look forward for those things to happen. But government always have final say towards this so for sure that fiat would still dominate.

Those privacy coins will remain to be like that and the coin will be adopted by them is Bitcoin also maybe those other top coins in the market.

[markm]

[snip]

The future is always centralized except something resilience like bitcoin that can't be get rid off no matter what.

[snip]

Actually I long long long ago read that decentralisation is the trend.

One of the poignant examples was the way machine-shops used to have centralised engines from which belts and pulleys, cranks and gears and so on distributed power to the various lathes and other machines powering them.

Another could be the way computing used to be centralised into warehouses full of vacuum-tubes but eventually became distributed to handheld computers.

We still see attempts to centralise, but progressive miniaturisation trends toward miniaturising the entire kit-and-kaboodle the centralised version implements into something small enough to carry around with one wherever one goes.

It is maybe a "slippery slope" from a sovereign multiverse to sovereign universes to sovereign solar-systems to sovereign planets to sovereign nations to sovereign demographics to sovereign individuals...


-MarkM-

[DeathAngel]

People can use privacy coins in P2P exchanges but no, privacy coins won’t replace cash because go ernments hate them & try their best to stop them. So people might choose to use them but no government is ever going to support it. Privacy coins will remain a Black Market type, secret asset. They won’t be encouraged by governments.

[Abiky]

Impossible for privacy coin to replace cash in the future where even now using privacy tool will get your account frozen. Those mixers will insta freeze your account the second you deposit to your favourite CEX, there's just no way privacy coin can get through this problem implicating AML.

Using Monero will also do the same thing to your account, it increases your risk in their system therefore doesn't seem plausible. The future is always centralized except something resilience like bitcoin that can't be get rid off no matter what.

Maybe if there's privacy in the future, it will be shielded stablecoin transaction that can't be peeked by random stranger but the government still have control of. Basically private ledger owned by the issuer to retain transactions data while still keep privacy to some extent.

Your account would only be frozen if it's tied to a centralized exchange or service. But non-custodial wallets and/or decentralized exchanges? That's another subject. There's no way governments can freeze or seize your funds this way. Since most (if not all) centralized exchanges will de-list privacy coins such as Monero and Grin, people will be forced to use decentralized alternatives.

Basically, the whole privacy coins industry will go "underground". Sort of like the "black market". Illegal by mainstream governments, but still accessible by the people (although it does come with its risks). Those seeking a true alternative to cash, will simply use privacy coins for day-to-day payments. Only a small minority will do this, though. The rest will carry on as usual with traditional cryptocurrencies such as Bitcoin and Ethereum. As long as privacy coins have healthy blockchain networks (strong community support), there should be nothing to worry about.

[passwordnow]

I think no. They are hunting for most privacy coins and have them delisted from centralized exchanges. That's already a sign that the government won't adopt it as a replacement to cash or even as an alternative. It's only us, the community that likes to use it and we know how important privacy is. But the government is against to it, and they're after it so, no to decentralization and a cryptocurrency that's more of giving people back their privacy.

[TastyChillySauce00]

People can use privacy coins in P2P exchanges but no, privacy coins won’t replace cash because go ernments hate them & try their best to stop them. So people might choose to use them but no government is ever going to support it. Privacy coins will remain a Black Market type, secret asset. They won’t be encouraged by governments.

The fact that there are some crypto audit or security company out there that automatically categorize our address to a red flagged address if we ever touch any privacy coin or privacy tool means privacy coin is still being frowned upon by the governments.

Just can't find scenario where it will thrive, it can only be used as black market type like you said at best. Expect more decentralization and strict regulation regarding privacy coin. The current categorizing of an address based on on-chain interaction is just the beginning.

[Hispo]

It is very unlikely privacy coins could replace cash in the future when governments decide to sunset cash in favor of Centralized coins issued by banks, in my opinion. And the reason is obvious, if the governments sunset cash in favor of centralized digital currency it would be for the sake of control and surveillance of population, so they won't allow vendors and merchants to accept privacy coins, only their centralized digital FIAT, as a result, most people will not opt to use crypto currency but just accept the plan of those governments and use CBDCs.
Privacy coins will continue to exist, that is a fact, but they will become harder to use and access liquidity.

[markm]

This whole thread reminds me of insane politicians several decades ago who, upon hearing that someone once somehow managed to actually get $50 for a game-asset "magic sword" on E-Bay, started proposing that anyone one or more of whose characters in such games came into possession of such a sword should be taxed; in other words that even in games, even regarding virtual "characters", each change of ownership of anything be a "taxable event", possibly even down to change of virtual "location" based on which character or group of characters holds the title-deed as it were to that "location".

That is insane partly because of the sheer almost-intractable difficulty of it, the massive volumes of data involved:

Suppose you have a multiverse, hosting for which is provided by group A...

Featuring a supercluster of clusters of sub-clusters of super-groups of local-groups of galaxies...

Each containing quadrants of subquadrants of (whatevers etc) of supersectors of sectors of subsectors of solar-systems (enough layers for galaxies to be at least up to 100,000 stars wide tall and deep)...

Before even getting down to individual characters or not-multi-planetary corporations we already have a big problem just tracking "ownership" of the solar-systems themselves, considering at all the various scales who owns which individual instance of each of those larger things can be "up for grabs" moment to moment and even for long spans of time be indeterminate with entire wargames and political games and economic games going on trying to "gain ownership" or "claim ownership", with up to all of such games potentially vying for control of any particular instance of such territories or "things"...

By the time you focus all the way down to any specific individual character and the inventory of things in its environment and what each such thing that can contain other things has in its own inventory along with the character's inventory of hands, heads, feet, arms, legs, belts, pouches, bags, small sacks, large sacks, blue sacks, red sacks, green sacks, boxes, chests (oops pun what do we even mean in this instance by chest?) and so on and so on and so on...

And which pocket or bag or sack or whatever, if any, that character has put something belonging to someone else into...

And whether that someone else actually owns that thing or themselves is merely custody-ing it for someone else...

Who in turn might well simply be a custodial service manager working for a custodial service whose service offered is that of attempting to safekeep custodied items by distributed-custody, each valuable item being distributed into the custody of a superhero-or-better power and reputation and reliability character...

Or might be actually a thief and the individual character under consideration a member of a gang guild etc of thieves...

...It is crazy to even try to track that crap, heck most games don't actually implement such tracking themselves, so for something or someone outside of a game to even consider it is ridiculous.

So, ultimately, it has to come down not to whether someone somewhere on something-Bay or anywhere else actually managed to con or persuade or marketeer anyone ever into trading fiat money for such or similar a thing but, realistically, whether that specific instance of such a thing just managed to rake in some fiat.

And even that possibly isn't really any business of anyone other than the issuer of that specific "brand" of fiat and the parties to that specific individual transaction of that specific "brand" of fiat for something else...

So ultimately everything that is not fiat is a privacy-coin of sorts, whether a bottlecap or an engagement ring or a pretty rock or a cowrey shell or anything else, heck even despite publicly trackable blockchain without so called "privacy features" there is "privacy through obscurity" just in having tens or hundreds of thousands or millions or whatever of such "public" chain, the mere existence of which is possibly unknown to anyone other than those who run their nodes...


-MarkM-

[Frankolala]

Government doesn't like the people to have complete privacy lifestyle and that's why privacy coins wouldn't be able to take over government fiat. Whatever is not from the government cannot be given the opportunity to replace fiat. Government controls fiat, manipulate fiat because that's what they want. CBDC will replace cash if government wants to do away with cash because it's the government own.