Are we heading toward a cashless future?

[barisbilgili]

At the same time, younger generations are increasingly comfortable with digital payments and often prefer the convenience they offer. Because of this, it’s reasonable to expect that digital payments will continue to grow and may eventually dominate most transactions worldwide. Physical cash will likely still exist, but we may see it used far less frequently in the future.

That could be because most people prefer the convenience of transactions, but I realize that cash is still very much needed by most people today. I also live in a village, and we still predominantly use cash, so very few people offer digital payment systems. My prediction for the next few years is that cash payments will still be used in our area due to a lack of available resources and perhaps because public awareness of this type of payment system is still relatively new. I've only seen it from a small perspective in my area, although in urban areas many people may already be using digital payment systems without having to carry cash when shopping.

It must be admitted that nowadays things are increasingly made easier with digital payments. however, this does not mean that they can replace cash and I am sure that will never happen. It’s just that the amount of cash in circulation will slightly decrease because more people are conducting transactions using digital payments.
Currently, digital payments are not only common in big cities, but in several remote towns, many people are also doing it because of its convenience.

[reagansimms]

With digital payments and central bank digital currencies on the rise, will physical money soon disappear?

Perhaps physical money will not disappear anytime soon even though the use of digital money continues to increase. A more efficient and secure payment system can reduce dependence on physical money, but the government cannot eliminate physical money because it remains the most inclusive payment instrument and is accessible to almost everyone, including ordinary people who do not have access to banking services or digital technology.
Physical money also allows for anyone who wants to make anonymous transactions, those who want to maintain privacy may choose physical money over digital payments or digital currencies.

[Synchronice]

Rural areas could be different than urban ones and I agree on that. But not this many people live in rural areas, in fact majority of the nations live in urban areas, look at the most populated cities of nations and you will see that nearly half of the nation is at three or maybe four cities, and the rest are just spread everywhere.

So that means we can't really claim that it's the rural areas that make it cash heavy, considering half of the nation or more are at urban areas, that means we have to focus on who are these people who live in urban areas and also use cash even today. Cash is long gone in my area, I do not see anyone using cash, we all use card, because it's much easier to use and why carry cash with you, plus it's safer.

You are correct. In general, I would say that roughly 60% of people live in urban areas while 40% of people live in rural areas but in developed countries, probably 80% of people live in urban areas and the rest 20% in rural areas.
People who use cash in urban areas, are minority, so focusing on them is not the best solution to make the society cashless because they'll adapt naturally. Instead, the focus should be on rural areas but companies don't do that because it's not financially beneficial for them (nor easy, cheap and profitable) t install infrastructure in rural areas. That might happen when companies will make a very good profit and cashlessness will become mandatory.

[Mahanton]

Rural areas could be different than urban ones and I agree on that. But not this many people live in rural areas, in fact majority of the nations live in urban areas, look at the most populated cities of nations and you will see that nearly half of the nation is at three or maybe four cities, and the rest are just spread everywhere.

So that means we can't really claim that it's the rural areas that make it cash heavy, considering half of the nation or more are at urban areas, that means we have to focus on who are these people who live in urban areas and also use cash even today. Cash is long gone in my area, I do not see anyone using cash, we all use card, because it's much easier to use and why carry cash with you, plus it's safer.

You are correct. In general, I would say that roughly 60% of people live in urban areas while 40% of people live in rural areas but in developed countries, probably 80% of people live in urban areas and the rest 20% in rural areas.
People who use cash in urban areas, are minority, so focusing on them is not the best solution to make the society cashless because they'll adapt naturally. Instead, the focus should be on rural areas but companies don't do that because it's not financially beneficial for them (nor easy, cheap and profitable) t install infrastructure in rural areas. That might happen when companies will make a very good profit and cashlessness will become mandatory.

Cash use is still tied a lot to how accessible digital infrastructure is most urban areas already have wide access to stable internet banking apps and payment terminals which make cash almost obsolete but in rural or semi urban areas where connectivity and infrastructure are weaker cash remains the most reliable method of exchange. Even in cities there are still people who prefer using cash this can be for reasons like privacy habit or mistrust of banks and digital systems older generations for instance often feel more comfortable handling physical money rather than relying on cards or mobile apps so while the shift toward digital payments is strong it isn’t universal.

Companies focus on urban adoption first because that’s where profit and volume are higher installing digital payment systems in remote places isn’t cheap and doesn’t guarantee quick returns once the infrastructure and regulations make cashless systems cheaper and more inclusive then the rural transition will follow naturally. Ultimately a completely cashless world might happen someday but only when every social and economic layer feels comfortable with it otherwise cash will continue to exist as a backup for reliability and accessibility.

[G_Besar]

It must be admitted that nowadays things are increasingly made easier with digital payments. however, this does not mean that they can replace cash and I am sure that will never happen. It’s just that the amount of cash in circulation will slightly decrease because more people are conducting transactions using digital payments.
Currently, digital payments are not only common in big cities, but in several remote towns, many people are also doing it because of its convenience.

Those that are more convenient will always dominate in life, so that manual payments using physical cash will slowly begin to diminish due to the availability of other payment methods that make it easier for everyone to buy anything. Physical money is difficult to immediately replace by any method, but when the use of other payment methods dominates the environment, most people will no longer remember physical cash to buy what they want because they can order directly through the marketplace using direct digital payments.

[bettercrypto]

There are countries that have widely implemented cashless systems, like the U.S., Canada, Europe, and others. But here in our country, we are being left far behind by technology because of the lack of such implementations.

This is especially true when government officials are corrupt, like here, where they do nothing but steal from the nation's tax funds. Then they repeatedly borrow from the World Bank,
only to steal that money as well. That's why a cashless payment system seems very unlikely for us right now.

[WatChe]

Perhaps physical money will not disappear anytime soon even though the use of digital money continues to increase. A more efficient and secure payment system can reduce dependence on physical money, but the government cannot eliminate physical money because it remains the most inclusive payment instrument and is accessible to almost everyone, including ordinary people who do not have access to banking services or digital technology.
Physical money also allows for anyone who wants to make anonymous transactions, those who want to maintain privacy may choose physical money over digital payments or digital currencies.

One of main advantage which physical currency provide over digital transaction these days is anonymity. For instance, in my country crypto is not legalised and converting crpyto to fiat through digital options like Binance P2P poses significant risks because you can be caught by law enforcement agencies. That's why people here prefer to use physical money while converting there crypto to fiat currency. Moreover, it's not possible to completely eliminate usage of physical currency because not everyone in country is well aware of digital payment systems.   

[colinistheman]

Credit/debit cards from the 1960s,

65 years passed and there are still people who do not own one. It can take another 100-200 years for cashless economy at this pace.

I don't know because it depends on the development of technology and government. The government will be the one to decide because to have a cashless world, we need to ensure adequate infrastructure as well as convince people to switch to new payment methods. Only the government can do all these things.

But in my opinion, a cashless world is not likely to appear anytime soon in the next 10 or 20 years. Our world is developing unevenly, many countries are developing very well but at the same time, many countries are in very bad condition. As you said, many people can't even get credit/debit cards these days. How will they be able to access and adopt digital payments?

[Z_MBFM]

With digital payments and central bank digital currencies on the rise, will physical money soon disappear?

China has already launched its digital currency and they are focusing a lot on digital payments. The people of that country are very good at this digital payment due to which the government of that country has been able to arrange a cashless transaction in their country. It is said that cash is not used in that country. But it will take time for such a system to be implemented in every country because people of all countries are not good at digital payment so gradually people will learn to use it and then the whole world will be able to build a cashless society. Where no one will use any cash anymore and they will not have to carry cash to buy and sell products of any amount.

[DYING_S0UL]

With digital payments and central bank digital currencies on the rise, will physical money soon disappear?

Seems like we already are seeing some glimpse of it! These days I barely carry around any big sum of cash! Most of the times, I'm making payments through online banking apps. Even a day ago, I purchased some winter cloths using my Bkash app (online payment method). I believe cashless will be the new future! I personally try as much as possible to pay cashless using online methods, still there are many places where only cash is accepted! So the whole progress is dependent on the place you are living on. The 3rd world countries are still lacking behind than the 1st world countries. Lastly one way or another, we will see a cashless future eventually.

[Kagaru]

With digital payments and central bank digital currencies on the rise, will physical money soon disappear?

Not everyone has the ability to use a smartphone or bank app, many are in rural areas and many are elderly people for whom cash is the easiest and safest. For them physical money is still important and there is the issue of privacy, anyone who wants their small transactions not to be monitored. That freedom can still only be provided in cash. In my opinion, digital payments will increase, but cash will stay on the side as a sort of backup system, because it will take a long time for all the levels of society to adapt to the digital. So the fear that physical money will go away is a little bit blown out of proportion.

[Yeesha]

Physical money is becoming increasingly rare. Here in my country most people use bank money (credit cards) or the Pix system, which is an instant transfer method. CBDCs might not become popular worldwide, but physical cash disappearing is only a matter of time. Everything will be done digitally in the future.

I can't predict the future, because I actually don't know what the future may brings. But from my perspective and critical experience and observation I don't think physical currency or fiat currency will be totally/ permanently eliminated due to the existence of cryptocurrency. The government will not like the idea at all, because of their own interests in commercial banks. And besides  both cryptocurrency and fiat currency has their own advantages and the disadvantages, and they can continue to coexist without any issues?

[gunhell16]

Credit/debit cards from the 1960s,

65 years passed and there are still people who do not own one. It can take another 100-200 years for cashless economy at this pace.

I don't know because it depends on the development of technology and government. The government will be the one to decide because to have a cashless world, we need to ensure adequate infrastructure as well as convince people to switch to new payment methods. Only the government can do all these things.

But in my opinion, a cashless world is not likely to appear anytime soon in the next 10 or 20 years. Our world is developing unevenly, many countries are developing very well but at the same time, many countries are in very bad condition. As you said, many people can't even get credit/debit cards these days. How will they be able to access and adopt digital payments?

I agree that the decision to implement such digitalization in payments ultimately lies with the government. Also, cashless payments weren't accessible to most people in the past, especially when there was no internet. The only cashless payment methods I knew back then were debit and credit cards. But now that the internet exists, e-wallets and digital banks have been added as additional options for this kind of system.

Just like here in our country, people now mostly use e-wallets or digital banks. However, of course, these methods can only be used if an individual's mobile phone has a data connection.

[criptoevangelista]

Physical money is becoming increasingly rare. Here in my country most people use bank money (credit cards) or the Pix system, which is an instant transfer method. CBDCs might not become popular worldwide, but physical cash disappearing is only a matter of time. Everything will be done digitally in the future.

I can't predict the future, because I actually don't know what the future may brings. But from my perspective and critical experience and observation I don't think physical currency or fiat currency will be totally/ permanently eliminated due to the existence of cryptocurrency. The government will not like the idea at all, because of their own interests in commercial banks. And besides  both cryptocurrency and fiat currency has their own advantages and the disadvantages, and they can continue to coexist without any issues?

Conventional money will never stop existing, it is a government’s greatest weapon. A country with a weak currency is doomed to fail. But what I mean is physical money, paper bills, metal coins, the kind you carry in your pockets. That will inevitably stop existing at some point. Everything will be digital, money will be nothing more than a number on a screen. That moment is closer than we think.

[Churchillvv]

With digital payments and central bank digital currencies on the rise, will physical money soon disappear?

Yeah but it will not totally go away just like coins now, they are rarely used or seen but still in existence just scarce because other things have replaced it so soon or later cash could be, rarely used but surely still will exist, however we are already in the future which we usually speculate because in some areas now well advanced people make transactions without much use of cash. Soon it will spread wider and cash will decline in use.

[brownn]

With digital payments and central bank digital currencies on the rise, will physical money soon disappear?

Yeah but it will not totally go away just like coins now, they are rarely used or seen but still in existence just scarce because other things have replaced it so soon or later cash could be, rarely used but surely still will exist, however we are already in the future which we usually speculate because in some areas now well advanced people make transactions without much use of cash. Soon it will spread wider and cash will decline in use.

Governments are also promoting it because it makes taxation easier . Prevents hoarding and all.

[DrBeer]

With digital payments and central bank digital currencies on the rise, will physical money soon disappear?

Yes, this is what all countries will eventually come to. Cash has many problems and is “expensive.” One of the problems for the state is the inability to track and influence cash payments, which are uncontrolled and constitute a significant part of the gray or black economy (tax evasion, corruption, organized crime, etc.). Therefore, states will push for a shift away from uncontrolled cash toward digital and controlled money.

[free-bit.co.in]

I can't predict the future, because I actually don't know what the future may brings. But from my perspective and critical experience and observation I don't think physical currency or fiat currency will be totally/ permanently eliminated due to the existence of cryptocurrency. The government will not like the idea at all, because of their own interests in commercial banks. And besides  both cryptocurrency and fiat currency has their own advantages and the disadvantages, and they can continue to coexist without any issues?

Conventional money will never stop existing, it is a government’s greatest weapon. A country with a weak currency is doomed to fail. But what I mean is physical money, paper bills, metal coins, the kind you carry in your pockets. That will inevitably stop existing at some point. Everything will be digital, money will be nothing more than a number on a screen. That moment is closer than we think.

Yes, cash will soon disappear and we are heading towards that but fiat will never disappear. It just evolved from one form to another over time and with the advancement of technology. There is only one scenario in which it disappears permanently, and that is when the government no longer exists. But we all know that will never happen.

Cryptocurrencies will always be just an alternative, they will never have a chance to threaten fiat dominance, let alone replace fiat completely.

[Bluedrem]

Yes, this is what all countries will eventually come to. Cash has many problems and is “expensive.” One of the problems for the state is the inability to track and influence cash payments, which are uncontrolled and constitute a significant part of the gray or black economy (tax evasion, corruption, organized crime, etc.). Therefore, states will push for a shift away from uncontrolled cash toward digital and controlled money.

When citizens of a country use government-controlled digital currency, the government of the country will be able to easily keep track of the financial status of that person at all times. In that case, there are many people who do not want to pay the taxes imposed on them in full, that is, they understate their economy so that the government has to pay a small amount of tax. Those people will come under the government's tracking, so there will be no more opportunity for them to evade it. And a person never wants to show his financial status in front of everyone. I think that is why people will not want to accept government controlled digital currency so much, so it will not gain much popularity.

[Abiky]

Yes, this is what all countries will eventually come to. Cash has many problems and is “expensive.” One of the problems for the state is the inability to track and influence cash payments, which are uncontrolled and constitute a significant part of the gray or black economy (tax evasion, corruption, organized crime, etc.). Therefore, states will push for a shift away from uncontrolled cash toward digital and controlled money.

Cash may be expensive, but it's the only way the unbanked will be able to participate in the mainstream economy. If governments take that away, the unbanked will be left out of the system. Especially minors and the elderly. Once physical cash is taken out of circulation, criminals and the unbanked will probably use privacy-oriented cryptocurrencies to help preserve their financial freedom. Or they could use physical silver and/or gold coins/bullion like in the old days.

Considering that digital payments have taken the spotlight, a cashless future is inevitable. We just need to be prepared for it.