Diner’s Club was the company that came up with the very first credit card in 1950, which marked the beginning of the era of cashless society. Economists and other types of specialists have, throughout the course of time, speculated that digital currencies will eventually replace physical money everywhere on the globe. However, despite the fact that various currencies of this sort have made their way into the economic landscape, none of them have been able to fully replace cash. The question then becomes: Will there be a day when the world no longer needs currency, and if so, when will this occur?
The role of cash in the Economy
According to Cash Matters, it is very improbable that the United States of America, or perhaps the whole globe, would ever totally forsake the use of real currency. This is due to the fact that, as stated in the book, currency is an extremely important component of every economy. It does not depend much on technology, which makes it a quick and trustworthy mode of payment, and it is robust even during times when the economy is unstable. These are all reasons why it is considered the safest method of payment. In addition, the use of real money does not cost anything, and it is ubiquitous in the sense that it may typically be exchanged for other currencies.
Physical money, in addition to its practical and symbolic worth, has a significant role in the lives of many customers. Some people believe that doing so provides them with a greater sense of nationality as well as more control over their financial affairs. Some people continue to believe that using cash gives them more privacy in this day and age of ubiquitous data collection.
Digital Money Versions
In spite of the fact that physical money serves a clear purpose, several circumstances over the years have required the creation of digital analogues. Players from all over the globe are now able to more easily access casino games thanks to the proliferation of online gambling as a thriving and profitable business. However, due to the fact that these players were not strolling into physical venues with wads of cash, online casinos that offered real money had no choice but to shift to digital currencies.
Customers are encouraged to use digital transaction methods to pay for services at many companies nowadays, including casinos, and in some cases, they are even rewarded for doing so. These often involve fiat currency exchanged via online banking platforms or, more recently, cryptocurrencies such as Bitcoin, Ethereum, and Dogecoin.
According to a recent article published in the New York Times, central banks from several parts of the world have reportedly been experimenting with digital versions of their own currencies. Imagine it as a kind of virtual money that, unlike bitcoin, is issued and managed by the government in the same way that cash is. Bitcoin is an example of an uncontrolled cryptocurrency.
Skepticism
A portion of the business community harbours scepticism about the practicability of a cashless society, as is typical when it comes to the introduction of novel concepts. Allan M. Siegel, a partner at Chaikin, Sherman, Cammarata & Siegel, P.C., likens the adoption of a cashless society to “taking a step backward in evolution.” Siegel is of the opinion that many individuals would continue to keep their cash reserves even in economies that employ digital money. This is due to the fact that a cashless society would increase the value of real currency.
Even more pessimistic forecasts were provided by Udo Mueller, CEO of Paysafecard. According to Mueller, a total shortage of cash would make the challenges faced by disadvantaged sections of society much more difficult, and the high levels of financial exclusion would wreak havoc on the economy. Some customers are concerned that the solutions for cashless payments are overly reliant on technology and that this might entirely paralyse the economy in the event of a natural catastrophe.
Final thought: Looking into the future
Some industry professionals, such as Robert Davidson, CEO of California Title Loans, are of the opinion that the period of a cashless economy is just twenty years away. Davidson is of the opinion that the majority of the money that will be in circulation around the globe will be stored digitally, either as a kind of cryptocurrency or in banks and on credit and debit cards. However, even he is hesitant to assert that there will come a day when real cash will no longer be used anywhere on the globe. Because of this, it is very unlikely that we will ever live in a society that is completely free of currency—at least not in the foreseeable future.
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