Is the world ready to give up the cash: The pros and cons of digital money

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People around the world are increasingly choosing digital payments over cash. Online banking, crypto wallets, and P2P platforms allow you to quickly send and receive money, forgetting about a wallet with banknotes. If your wallet is empty and there is not much time left before the salary, you can take a loan from Payday Depot. So, how quickly can the world go completely cashless, and what are the advantages and disadvantages of switching to electronic payments?

Worldwide Cash Abandonment: Fact or Myth?

With the advent of credit cards, contactless payments, and cryptocurrencies, the possibility of the disappearance of cash around the world is becoming more and more real. But it is worth considering a few points that make this fact more of a myth than a reality. Physical money has accompanied people for thousands of years, and with good reason. Cash is almost untraceable, easy to carry, accepted everywhere, and secure. Cryptocurrency Bitcoin is anonymous, but so far too unstable and inconvenient. PPP mobile checkout systems like PayPal or Venmo require apps and accounts and are still easy to keep track of. When there is a power outage or a failure in the electronic system that enables online commerce around the world, cash comes to the rescue. Thus, the use of cash around the world is still relevant, and a complete transition to digital currencies is still a myth.

Advantages and Disadvantages of Digital Money

Despite advances in technology, cash remains a popular payment method in many countries. Nevertheless, digital currencies do not lose their value and relevance due to a number of advantages:

Convenience. Digital money allows you to make fast and convenient transactions via the Internet, mobile applications, and other electronic platforms.
Traceability and transparency. All digital money transactions are easier to track and verify, which can help fight financial fraud and illegal activity.
Cost reduction. Digital transactions can be cheaper to process than cash, especially in international payments.
Technology integration. Digital money can be easily integrated with new technologies such as the Internet of Things, automated systems, and smart contracts.

Thus, digital money is convenient and safe, but there are reasons why cash is still not inferior. Some disadvantages of digital money:

Dependence on technology. The use of digital money requires access to the Internet and electronic devices. This can create problems for those who do not have this capability or for those who are uncomfortable using the technology.
Exclusion of a part of the population. The transition to digital money may exclude those who cannot or do not want to use modern electronic devices from the financial system.
Possibility of loss of access. If you lose access to your digital wallet or there is a system failure, you may lose access to your funds.
Centralization. Digital money can be issued by central authorities, which can affect financial independence and privacy.

The complete rejection of cash in the world is a complex and multifaceted process. The more accessible and reliable electronic payment systems are, the faster the transition from cash to digital money can occur. But this process will take a long time to develop.