The slow death of cash

[Fuzzy]

I think the recent push for getting rid of cash, or at least larger notes, is mostly about negative interest rates. Central banks could just accept cash at a discount (e.g. a $1 bill is only worth 95 cents electronic), but I think they're scared of the public response to that. Smaller bills increase the storage and transaction costs for people/companies that are considering filling vaults with cash, which gives more margin for negative rates.

I like electronic payments if they're easier than cash, like automatic payments or buying gas at the pump. Otherwise, I think cash is much better. It's common for the electronic systems to quit working, and I'm not sure how you'd do small non-store transactions without cash (like pitching in for a gift).

[Dragline]

This idea is also now a marketing tool: https://www.youtube.com/watch?v=1dF9t_xQGks

[George the original one]

It's common for the electronic systems to quit working, and I'm not sure how you'd do small non-store transactions without cash (like pitching in for a gift).

People would use that other archaic non-cash system: write a check.

[tonyedgecombe]

People would use that other archaic non-cash system: write a check.

The UK payment council wanted to phase out cheques by 2018, in the end they had to reverse their decision but I think it is only a matter of time.

[chenda]

Cheques will definitely vanish soon, some of my younger colleagues have never owned a chequebook. I haven't used one in years.

[Ydobon]

Statistics, lovely statistics (Euro banknotes in circulation)

https://www.ecb.europa.eu/stats/money/e ... ex.en.html

[7Wannabe5]

People can be highly inventive when it comes to getting around currency restrictions. For instance, you can use your debit card to purchase tokens to spend at the stalls at farmer's markets in my neck of the woods, and there are you-buy-we-fry outlets that get around the limitation imposed on food stamp cards being used to purchase prepared foods. Merchant issued electronic gift cards are anonymous and do not tie in with the central banking/credit systems. So, you could convert your bank funds into Wal-Mart and/or Amazon credit. Probably the technology is cheap enough these days that drug lords could create their own rechargeable cards. Also, I could probably trade cigarettes directly for labor pretty readily in my neighborhood.

[Hankaroundtheworld]

I would be okay with vanishing of "physical" Cash if I could stall digital Cash in a safe way, like at a Full-Reserve Bank Account, but keeping it at current Banks is a risk; It is basically not your own money, legally, but given to the Bank as a "loan" and you are lucky if you get it back when another Crisis hits us, and I do not trust governmental protection (like 100k Euro in the Netherlands). Once "physical" Cash is gone, they can decide whatever they like, and trace every transaction of you, or take control via Tax, etc... 1984 ....

[henrik]

Here in Sweden cash is also getting used less.

MSB recently issued a booklet intended to prepare the population for a crisis. Holding cash in small denominations was a part of the recommendations:)