Digital Instead Cash Money Use
One of the effects on the domestic economy, a product of the confinement due to the pandemic, has been the significant decrease in the use of cash. Online shopping has increased considerably.
The decision of parents to protect their children from a possible contagion and the need to buy food, found its solution in online shopping and delivery services where merchants deliver the products at the doors of the houses.
Not only restaurants and supermarkets (who traditionally deliver) but also establishments that did not usually provide this service, had to adopt it to try to maintain the level of their sales.
For crypto enthusiasts, the idea of a cashless society has always been a utopia, but due to current circumstances, this possibility seems closer than ever. It was never the wish that crypto adoption happened for these dire reasons, but one way or another, it is happening.
Although so far transactions remain in digital fiat money, there has also been a rebound in crypto-backed operations.
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According to a study by Deutsche Bank titled "Imagine 2030" argues that by 2030, cryptocurrencies will replace cash.
This work, by analyst Jim Reid, raises 24 alternative ideas for the next few years. According to the expert, new financial exchange assets, led by cryptocurrencies, would dominate the market in the next decade, which means the disappearance of fiat money.
In Venezuela, the use of cash has also decreased, but for other reasons. The shortage of local currency cash is the main reason.
On the other hand, the brutal devaluation that affects the Venezuelan economy has caused the implementation of several currency reconversions by the government administration. The highest denomination banknote has a real value of 0.03 usd, which has led to the adoption of the US dollar as the most widely circulated currency and its use has been extended even for simple food and retail purchases.
But it is still the online operations, interbank transfers and payment with debit and credit cards that dominate and commercial exchange.
@juanmolina
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Hello @juanmolina
This seems to be an increasingly accentuated trend. The pandemic also made people think that through banknotes and coins they could share the Corona virus.
This made card transactions more used. The expansion of the use of cryptocurrencies as the most accepted form of payment was really utopian, however, we are seeing more and more adoption.
At least in theory we will be able to witness the increase of cryptocurrency usage in 2030
Hello, dear friend.
In my opinion, this is a real possibility.
Even the use of debit cards would facilitate contagion since according to studies, the virus can remain alive for several hours on surfaces such as plastic and glass.
cashless economy is encouraged but having it, in reality, will take so long. I use digital money for many things but still, there are many things that can be done only with cash and I don't see it improving for the next 5-10 years. Nice post.
@tipu curate
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I was reflecting on my own post and you know what I noticed? That I have not used cash for several months. Only on a couple of occasions did I have to buy a few dollars in cash to pay for medical expenses. But the Venezuelan bill, I have not used for a long time.
digital money has been around for years yet there many ppl in the world that don't have bank account, so 2030 replacement is very very optimist statement
In the future, a bank account will not be necessary.
Greetings, personally I doubt very much that cash will stop being used, as much as I like coins the reality is that cash is cheap to manufacture and its use demonstrated that a simple contract to the bearer (money) can sustain economic powers, the cash is a value that is given to the bearer and that does not require anything to transfer that value.
Definitely the increase of using digital money to pay has increased, we can see that in our country for a long time with the use of the payment system by just sending a text message or using Apps that are used to make payments by Through that application, I also think that little by little physical money will disappear but NOT everywhere. Just imagine where there is no connection, there the delay will continue.
Hello @juanmolina
In my opinion it is a matter of time before organic money disappears for good and gives way to other forms of payment (cryptography, transfers, among others).
Where the opening of such a phenomenon can be attributed to the current pandemic, which has left us great lessons in financial and health matters, as it has forced us to adopt new financial mechanisms. Thank you for your contribution
And it's interesting to see that the people of the old system will slowly be left behind. This is when the rich become poor and the poor become rich. This is a very significant time in history.
Hello, @gungho.
I hadn't thought about it.
Really, this situation is actually happening.
Thanks for commenting.
Hello @juanmolina, thinking about what Jim Reid mentions about the dominance that cryptocurrencies will take in the money market in the next decade, in my mind I would like to see an "early trial" of this case in Venezuela, where we do not have local currency available (money shortages cash), we present high prices even in USD currency (product of speculation), where payments with debit cards "suffer a slight change in amounts" (also due to speculation).
I hasten to think that the entry into the balance of cryptocurrencies as forms of local payment would be a great solution, but at the same time I remember that our economy is a "phenomenon" without control today.
You have left me a good topic to reflect on with your post.
See you soon..!
I'm sorry I didn't respond to your comment earlier.
On the one hand, we have the massification of electronic money, this counteracts the cash shortages.
But in our country the adoption of crypto is very far away, which perhaps could represent an opportunity for economic growth.
Hello friend @juanmolina
In a certain way, the pandemic has had a positive impact on the management of digital resources, and fundamentally on the purchase of food and products through digital platforms, an aspect in which the deteriorated Venezuelan economy has been favored, since physical money stopped circulating normally years ago. Your article, allows us to analyze and see a reality and to project the future actions of commercial exchange that can arise in the country. Kind regards
I'm very sorry, because I not have replied before.
Boosting electronic money would only make commerce a little easier, which has been affected by the lack of cash.
But our basic problem is devaluation. This will go on and on, as long as no really effective economic measures are taken.