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Going Cashless: Can Crypto Drive the Desire to Ditch Cash?

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In the evolution of money, it is coming to a point where fiat cash, paper notes, and coins, are quite outdated. Many societies have already started towards the going cashless, and are rather embracing digital cash – that is the money we have in accounts that are transacted digitally. 

However, even with debit and credit cards, and the proliferation of the internet, there has always been a need to keep cash on hand. The notion of going fully digital with one’s cash means that there are very high levels of monetary controls and surveillance from the banks. 

In that regard, there is still this need for cash as it allows some freedom and control for the spender when it comes to transactions. Of course, it is also a system that is slightly removed from the banks, which is becoming more and more important as banks continue to stutter. 

With that being said, the drive to go cashless persists, and there are some major advantages that come with it. So, perhaps, it could e cryptocurrency that helps push the envelope to a truly cashless world. 

It is unlikely that cryptocurrency will entirely replace the full monetary system, especially the cryptocurrency that we know today. Bitcoin is an incredible system that runs itself through decentralization, but it lacks a few major inputs to run the entire global financial system.

However, it could be seen that aspects of cryptocurrency could become the next evolution of payments and avail cash to be more digital and less controlled by the banks – even if it does end up that the cryptocurrency of the future is a banking initiative.

Jim Reid, Global Head of Fundamental Credit, Strategy and Thematic Research at Deutsche Bank, wrote in a research report: “While critics bemoan cryptocurrencies as constrained by regulatory hurdles, we believe the incentives of governments and card providers are such that digital currencies are inevitable.” He authored the section of the report entitled “The end of fiat money?” 

He added:

“The forces that have held the current fiat system together now look fragile and they could unravel in the 2020s. If so, that will start to lead to a backlash against fiat money and demand for alternative currencies, such as gold or crypto could soar.”

The notion from Reid is that banking is in a fragile place and that cryptocurrency could offer a good alternative. In this respect, it would also be suggested that the current digital cash ecosystem that is becoming the major source of financial transactions could also be in danger if the banks do not reinvigorate themselves. 

Darryn Pollock
Darryn has been interested in the blockchain and cryptocurrency space since he heard about Bitcoin in 2015. He then decided to use his journalism degree to report on this fascinating fintech space in 2016, and has not looked back since.

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