*** Disclaimer***

I am by no means a Financial Advisor or Fiduciary

Nothing here is to be seen as financial advice.

Please do your own research

***

Is Paper Money Disappearing?

I had heard that the trend is paper money seems to be going away more and more. There are more and more stores that no longer take cash. This means businesses are setting up for electronic payments only. That made me think, if that is true while the US Dollar isn't going away, just digital, will that open the opportunity for other digital currencies to step in? From what I have heard and seen the Covid-19 pandemic has seen an increase in paperless money with the proportional decrease in paper money. I have also read that the younger generations use less and less cash and more and more cashless payments. 

Could something else step in?

Now, obviously going cashless doesn't mean people are using something other than the US Dollar, just, they are using the digital equivalency via debit and credit transactions. This got me thinking about the possibilities of crypto currency payments and how this could help bring more businesses into accepting them as payments. Now, here I have less and less knowledge but am slowly learning more. I know there are stable coins that closely follow the price of the fiat currencies they are based off of, as well as other payment token blockchains that are trying to break the ice in this kind of area. 

Cash vs. Electronic Funds

The problem with carrying paper money is that if you loose it, it is gone. You can't call your bank and say "Hey, I lost my wallet", "Hey the wind ripped it out of my hand", "It must have fallen out of my pocket when I was getting something else" and the bank will reimburse you. Not gonna happen. If your identity is stolen, the cash you have with you won't disappear as it can with electronic funds.  With debit or credit your identity can be stolen and BOOM, there goes your money, or, if someone get's your card number by some chip or strip reader there goes the funds on that card. Now you can lock your card with most issuers to stop everything from being taken and most issuers have some sort of insurance or protection in the case of fraud, but there is no guarantee. 

Can crypto have a chance to fill in?

I started thinking will crypto get more and more of a foothold in regular consumer purchasing and peer to peer payments on a regular basis? Crypto, from what I know, is a more secure than debit and credit due to the blockchain aspect and from my experience you need to approve wallet transactions. You can't loose crypto while digging through your pockets or by a gust of wind. There isn't one database that has your information, where, if it goes down you are SOL or have to wait for the server to be restarted. 

The downsides that I have seen with crypto at the moment is the volatile nature of it right now and the gas prices/transaction fees depending on the blockchain you are using. 

What will the future bring, who knows. I am very interested to see where all of the things going on in the world, and digital world leads us.

Thanks for stopping by and let me know what your thoughts on all this are. Have a great day!

*** Disclaimer***

I am by no means a Financial Advisor or Fiduciary

Nothing here is to be seen as financial advice.

Please do your own research

***