When Will Crypto Overtake Cash?

Picture this. One day, in the not so distant future, cash will disappear and be a thing of the past. But without cash, what do we then rely on to pay for our day to day items?

There are two routes that can be taken, one of which is already being done in across a lot of nations, credit card/debit card payments. So for example, people could leave their wallets at home and just bring their cards out with them instead. The other route is cryptocurrency.

The first route is something that we are very much on, with contactless payment being very popular due to their simplicity and ease. But cryptocurrency payments are getting more popular across the globe, granted at a snail's pace but even so, it is gaining traction in some parts of the world.

Blockchain technology seems to be the best promoter for this ‘cashless’ lifestyle. Nonetheless, the transition is already happening even without its help. Perhaps using the NFC (near field communication) function inside your phone is not that popular but simply swiping with a card is something even that older generations have caught on to.

Everyone knows of where payment systems are heading in the future, and it’s certainly not cash or any other physical assets. No, instead it’s all electronic.

Take a look at Sweden for example, only two percent of transactions are currently made in cash. Restaurants in New York’s Amazon Go stores are refusing to accept cash and companies are preparing for the future where cash remains mute. The NEXXO projects helping to speed up the transaction with a blockchain-powered solution for smaller firm’s and their customers while being in full compliance with local banks, law enforcement and local governments. Could this actually be real?

Ridding Cash

Ridding the use for cash is something that a lot of countries are already doing. A lot of big global hubs are preparing for a digitised future but could a nation be actually reaching 100 percent.

United States

It seems the United States is going in another direction though.

The United States is looking to introduce laws which would see this kind of store, that rejects cash payments, banned. Hackernoon’s Kirill Shilov has said that the main reason behind this is that they are “promoting racism and elitism”.

Of course, this is a controversial thing to say and as a councilman from the city of Philadelphia, William Greenlee puts it:

“Most of the people who don’t have credit tend to be lower income, minority, immigrants. It just seemed to me, if not intentional, at least a form of discrimination.”

These aren’t just words either as Massachusetts, along with the city of Philadelphia, have already banned stores that are rejecting cash as payment and it won’t be a surprise if New York or New Jersey will impose similar measures.

Even though this new legislation hasn’t been properly introduced yet, a lot of companies have found what could be a potential loophole. As Jim Kenney gave the green light for the change to outlaw stores that outlaws stores that don’t accept cash, a store is still able to use an app-based transaction if a paid membership is required to shop there.

Sweden

As we mentioned earlier, Sweden is right at the forefront of being a cashless economy. The percentage of cash in circulation in Sweden has significantly fallen, representing less than 1.2 percent of the nation’s GDP.

In fact, only two percent of transactions are made in cash and it is believed that said number will decrease to less than half a percent by next year!

A professor of economics at the University of California, Rod Garrett explained:

“Cash is really disappearing in Sweden. It’s not accepted at many businesses and many banks won’t deal with cash anymore.”

You may never have been to Sweden but if you have you may have noticed ‘no cash accepted’ signs throughout the nation's variety of stores. There are even big banks that don’t deal with cash any more.

I can’t stress enough how forward thinking the Swedes are in this regard.

UK

Compared to ten years ago a lot of Brits won’t carry as much cash around with them. Maybe a bit of change here and thee for the bus but even then a lot of buses take contactless payments in 2019.

Seven in ten transactions are made digital, without cash. Granted, Sweden is a bit further afield with this but even so, it’s clear they are making progress.

The government might be going through a tough time right now with Brexit but with cashless payments, they have seen the trend and they are pushing towards a cashless future.

I suppose a cashless society isn’t a question of if but when? Debit cards just surpassed their cash equivalent in 2017 so the fight is nearly won.