Millennials and Gen Z people use cash less and less. Some studies suggest that, in the next couple of decades, paper money will disappear altogether. Think about it. How often have you found yourself in a place of business that doesn’t accept cash in the past several years? The situation becomes even more fascinating in the testing COVID times we are living in right now. With the majority of people’s purchases happening online, cash seems almost obsolete. So, what is the future of traditional currencies?
Reasons Cash May Disappear
The proponents of the idea paper money will and should very soon get out of general circulation make a compelling case. The evidence in defense of their stance falls into the following categories:
- The move toward online payment;
- Easier fight against crime;
- Restructuring in the bank and credit sectors;
Each of these suggests not only will cash become obsolete, but that is also the right thing. One can make the argument a cashless society is going to be fairer. It will benefit the common person, and it will run more efficiently.
Online Payments
Since 2012 the Federal Reserve marks a constant steady increase in non-cash payments in the United States. Consumers pay between 3 and 5 percent more often without cash for purchases, year after year. Just a few decades ago checks used to be the only non-cash payment method available to the common man. The rise of the internet made it all too easy for everyone. Today consumers can choose from:
- Credit and debit cards;
- Electronic bank transfers;
- Direct deposit;
- Various online payment methods (PayPal, cryptocurrencies, and the like);