Survey: The future of Cash?

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Worsaer

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Next week I'm moderating a panel discussion on the subject of the future use of cash (as in coins and currency). Since this unique community of rocketeers has no shortage of opinions, I'd like to hear from you.

Thinking 10+ years out, what word comes to mind if you are describing the future of cash?

Please take the survey here: https://www.surveymonkey.com/r/MTDPTSN
 
Having just returned from two weeks in the fourth poorest country int he world, my perspective might be a little different than some of your respondents. Additionally, I work regularly with the homeless, and have lived, worked, and volunteered in Appalachia. "Cashless" is not a word that gets serious consideration in those places and if it is, it is truly frightening to consider the possibility of being completely locked out of all financial transactions.
 
Having just returned from two weeks in the fourth poorest country int he world, my perspective might be a little different than some of your respondents. Additionally, I work regularly with the homeless, and have lived, worked, and volunteered in Appalachia. "Cashless" is not a word that gets serious consideration in those places and if it is, it is truly frightening to consider the possibility of being completely locked out of all financial transactions.

Very insightful John. Thanks for your comments.
 
I think most politicians would agree (but would never be caught saying so) that a certain amount of cash transaction is a frequent lubricant for much of today's gov't deals. I very much doubt that the politician would like to have "$5000 -- bribe for bridge project" as an item on the monthly statement. So I doubt that a cashless society is in the reasonably-near future; it's simply not in our politicians' best interests.

PS: If there's no cash we'd all have to buy the cheap drugs rather than the good ones. I mean, that's what I've heard. Honestly. Heard about it... :)
 
I agree with @Peartree. Given that we are all on the internet (being on this forum), it's easy for us to consider digital money/credit cards/paypal type payments as an option. Even in the US though, I think that most people would not trust digital money (look at how many people distrust banks!), as a sole means of payment transfer. Banks are only considered ok because there's this mindset that you can always go to the bank and withdraw everything into bills+coins. Debit cards obviously being in the same world.

I remember seeing a study (sorry, don't have a citation) that debit cards, credit cards, etc tend to cause more spending on non-essential items. It doesn't "hurt" as much, so you're more likely to splurge. Is this a good thing? I don't know.

Will cash usage diminish? Sure- I don't see it getting larger. But I think there will always be a market for having money anonymous and physically with you, even if it's just to buy drugs.
 
I think most politicians would agree (but would never be caught saying so) that a certain amount of cash transaction is a frequent lubricant for much of today's gov't deals. I very much doubt that the politician would like to have "$5000 -- bribe for bridge project" as an item on the monthly statement. So I doubt that a cashless society is in the reasonably-near future; it's simply not in our politicians' best interests.

PS: If there's no cash we'd all have to buy the cheap drugs rather than the good ones. I mean, that's what I've heard. Honestly. Heard about it... :)

The politicians won’t care. It’ll be shown as a campaign contribution, just like it is now. Or Super Bowl tickets, use of private plane, etc. The government wants cashless because then there will be a paper (ha!) trail of all transactions - much easier to mine for potential evidence.
 
Actually I am in the business of cash management sort of. Cash as a % of transactions is decreasing but cash in circulation is continuing to rise at about the same rate, there has been no fall off in that slope yet.
 
I assert we'll actually see a rise in cash and equivalents as more and more states pass restrictive regulations enforced with excessive taxes and fines.
 
Remember Puerto Rico and the hurricane?

She said her own cash was running very low, and though she had financial support from her family on the mainland there was no way to access it without internet and power.
Image: People wait in a long line at a bank aftermath of Hurricane Maria. “They sent me money through PayPal, but I don’t have access to internet to be able to make that transaction,” said Morales, 48. “I’m actually in the middle of this predicament because my cash is running low and I have the money via PayPal but I need the means to do that transfer.”

https://www.nbcnews.com/storyline/p...running-out-cash-hurricane-woes-mount-n805666
 
I just wish you guys (the US) would adopt a dollar coin, and maybe also introduce a $2 coin! I come home form a launch day and think "Look at this fist full of dollars!!" and in fact, it is about $13 in ones.. I know you have them ($1 coins) and I know you have (although very rare) a $2 note..

As for cash, we (in Canada) seem quite happy to use interact; debit card purchases and debit card & credit card 'tap' purchases. (But they do come with a user fee after a certain number of transactions, depending on your banking plan). E-transfers are becoming more & more common as well. And some seem able to pay for things thru their phone.

I'm a big fan of 'bartering', but I don't see paper money disappearing anytime soon.. its too easy for the little things..
 
I just wish you guys (the US) would adopt a dollar coin, and maybe also introduce a $2 coin! I come home form a launch day and think "Look at this fist full of dollars!!" and in fact, it is about $13 in ones.. I know you have them ($1 coins) and I know you have (although very rare) a $2 note..

As for cash, we (in Canada) seem quite happy to use interact; debit card purchases and debit card & credit card 'tap' purchases. (But they do come with a user fee after a certain number of transactions, depending on your banking plan). E-transfers are becoming more & more common as well. And some seem able to pay for things thru their phone.

I'm a big fan of 'bartering', but I don't see paper money disappearing anytime soon.. its too easy for the little things..

upload_2018-12-6_7-40-2.pngupload_2018-12-6_7-40-10.png
 
I'll add my voice to both of these.
Having just returned from two weeks in the fourth poorest country int he world...
As a US resident with well established access to banking, a smart phone on my person, multiple cards in my wallet, etc., I still use cash. Often it's more convenient to pull out a few coins or bills than to go through some other payment process. And there are the charges applied to the vendor and/or me; when I give my money to a store, I want to pay only what the marked price is and I want it all going to the vendor.
I just wish you guys (the US) would adopt a dollar coin, and maybe also introduce a $2 coin! I come home form a launch day and think "Look at this fist full of dollars!!" and in fact, it is about $13 in ones.. I know you have them ($1 coins) and I know you have (although very rare) a $2 note...
I too often find my wallet full of too many singles. The Treasury and/or Federal Reserve would save money by using dollar coins instead of bills. They've made half hearted attempts before to get the public on board with that, but they won't do it the right way. They issue dollar coins, wait for their acceptance, and say that then they'll stop with the bills. The public never makes the switch because the coins are new and strange. What needs to happen is the issuing of coins and the simultaneous cessation of printing the bills. Let the circulating bills age out naturally and people will easily get used to the coins when they have to. Right now there about a billion of the coins in bags because Congress commanded production numbers for the presidential coin series, so the up front cost of the coins to do this would be greatly reduced.

On the other hand, I wouldn't want the five to 10 singles that are often in my wallet to be suddenly replaced by 40 to 80 grams of coins in my pocket, so a $2 denomination would be necessary. A new $2 coin would require Congressional action, but to increase printing of the $2 note would not; it is allowed under current law.

OK, so, all that is about my current use and future wishes. But what do I think will happen in ten years? Frankly, not much. I think the cashless society and the change in $1 and $2 denominations are both pipe dreams.
 
Let's go back to the gold and silver system.

We should get on the peppermint standard.

https://www.huffingtonpost.com/entry/rudolph-ax-licking_us_56607408e4b079b2818d781d

5660750c210000c9005ac2cf.jpeg


Excellent point. "Cash" won't ever go away as long as there's precious metals, diamonds, and other "portable wealth."

Oh, sure. We start using diamonds as currency and the next thing we've got robot police keeping us from shooting each other.

https://public.wsu.edu/~delahoyd/sf/day.earth.html

Diamonds as a medium of exchange are problematic for a lot of reasons.

https://www.gemsociety.org/article/are-diamonds-really-rare/

https://time.com/blood-diamonds/

Peartree has it right,though. A "cashless society" is a fantasy of the well-off. The end of cash would be harmful to the poor and disenfranchised, and cash substitutes would immediately go in circulation into those communities -- but without any standard exchange rate for trade goods, the poor would get poorer.
 
I just wish you guys (the US) would adopt a dollar coin, and maybe also introduce a $2 coin! I come home form a launch day and think "Look at this fist full of dollars!!" and in fact, it is about $13 in ones.. I know you have them ($1 coins) and I know you have (although very rare) a $2 note..

Paul, I'm one of those odd Americans (of the US variety) that uses our dollar coins and $2 bills. Both are usually attainable at local banks except around holidays when grannies tend to wipe out the $2 bill supply for cards to their little ones. When I put one in for a tip at a restaurant with a group of friends, one will sometimes want to take it home for their "collection". I tell them that it's okay to do but they have to put three dollars into the pot as the $2 bill is obviously valuable to them. Sometimes they do, sometimes they let it be; either way the server gets their due or more.

I've even gone as far as getting half-dollar coins from the bank. This is very confusing to many people especially young cashiers. I used one as part of my payment and the young lady asked, "Is this a dollar?" I said, "No, it's a half-dollar," and showed her on the coin where it says that. She then asked, "How much is that worth?"

I've got a Loonie and a Toonie from my travels to Canada. I like the bi-metallic Toonie for its uniqueness in this part of the world but I prefer its alternate sobriquet, Queen Elizabeth with a bear behind.
 
thanks guys!
We adopted a dollar coin about 30 years ago. it had its defenders, but we all soon got used to it. We then got the $2 coin, and again, we all got used to it. I've seen many other nations adopt a coin for their "more popular" lower denominations..

I have yet to receive a $2 US bill in any of my US money transactions. I think I've seen one in my life.. I rarely go "into" a US bank, as I just drive up and withdraw my spending money..

Now, we also recently got rid of the physical penny. That is, no more copper pennies in your purse or pocket. if something cost $1.98, it's rounded up to $2. if it was $1.96, it got rounded down to $1.95, and you got a nickel back. Unless you paid with plastic, then its $1.98..
 
Having just returned from two weeks in the fourth poorest country int he world, my perspective might be a little different than some of your respondents. Additionally, I work regularly with the homeless, and have lived, worked, and volunteered in Appalachia. "Cashless" is not a word that gets serious consideration in those places and if it is, it is truly frightening to consider the possibility of being completely locked out of all financial transactions.

Remember Puerto Rico and the hurricane?

She said her own cash was running very low, and though she had financial support from her family on the mainland there was no way to access it without internet and power.
Image: People wait in a long line at a bank aftermath of Hurricane Maria. “They sent me money through PayPal, but I don’t have access to internet to be able to make that transaction,” said Morales, 48. “I’m actually in the middle of this predicament because my cash is running low and I have the money via PayPal but I need the means to do that transfer.”

https://www.nbcnews.com/storyline/p...running-out-cash-hurricane-woes-mount-n805666

I just saw an article last week that Sweden was on a rapid route to a cashless society. I think the stat in the article was that 50% of all retailers were expecting to stop accepting cash by 2025. The government was trying to slow that down for benefit of older people and people without bank accounts. Retailers saw a pretty big advantage in not having to handle cash, even though they have somewhat higher expenses due to fees. The payment (credit card, pay by phone, etc.) people all loved it because they stood to make a lot more money.

Right now, 7% (1 in 15) of Americans don't have a bank account.
 
thanks guys!
We adopted a dollar coin about 30 years ago. it had its defenders, but we all soon got used to it. We then got the $2 coin, and again, we all got used to it. I've seen many other nations adopt a coin for their "more popular" lower denominations..

I have yet to receive a $2 US bill in any of my US money transactions. I think I've seen one in my life.. I rarely go "into" a US bank, as I just drive up and withdraw my spending money.
There are vending machines and change machines that accept $5, $10, and $20 bills, giving dollar coins as change. So you'll see those in circulation once in a while. In my 55 years I've never seen a $2 bill in circulation that I didn't put there or receive as a gift or gag. A few (very few, I assume) people have been arrested here while spending twos because first a cashier, then the cashier's manager, then a cop all thought it was counterfeit, there being no such thing as a two dollar bill. There are days that I really, really wish one could fix stupid.
 
I'm a fortunate one. I've enjoyed using my debit card and online shopping for well over a decade and have had no problems. I don't use convenience stores as there is a no smoking, no eating and no drinking policy with my cars so no need for small amounts of pocket change. On the other hand, I don't use my phone to make transactions as I've no clue nor interest. In fact, since I got my phone in January of this year, I've taken the damn thing out of the house exactly three times this year. I needed to keep track of the time and the coffee shop doesn't have a clock. Because of this financial standard I use I won't be out pounding the pavement for Christmas either. In fact, it's already done thanks to the internet without my stepping out of the house.
 
I very much doubt that the politician would like to have "$5000 -- bribe for bridge project" as an item on the monthly statement.

It can't be a bribe if it is a campaign contribution.
Cash == first amendment, baby!

Don't ask me why, it just is...
o_O

Let's go back to the gold and silver system.

I see your gold, and raise you with beaver pelts!
I'm telling ya', they are coming back any day now...

beaver+pelt.jpg



Seriously, though, electronic payments are quicker and easier on the consumer, and way more convenient to monitor for the governments.
As long as the banking system is ubiquitous in a given country, the electronic payments will dominate lion's share of the financial settlements and transactions. But never to the 100% level, not without a government mandate.

The prerequisite banking omnipresence is not a reality for the vast majority of the world's population.

a
 
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