What is the future of “tactile money?”
RogerB
Posts: 8,852 ✭✭✭✭✭
Much of the money changing hands in the world has no tactile presence: it is composed of electronic bookkeeping entries and contractual obligations -- electronic transfers are among the best known.
What do you see as the future of tactile money? Why will this be the most likely outcome?
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The large financial institutions want to skim a percentage off every transaction. They can't do this if tactile money is still around. Look for their political "allies" to start pushing for legislation that will give them what they want.
Revelation 13:16-17King James Version (KJV)
16 And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name.
it's crackers to slip a rozzer the dropsy in snide
.....???
Wow! Roger asks a question, I post an answer reflecting my opinion of what will eventually happen to the future of "tactile money" and I get flagged for abuse? Looks like this crowd can get tough at times.
it's crackers to slip a rozzer the dropsy in snide
Hmmm....quoting the Bible is abuse. It's a Brave New World.
The purpose of money is to promote commerce. Electronic money promotes commerce more efficiently. Tactile money will disappear. I rarely spend cash anymore. I bet my college students never do. Much easier to scan your phone.
Yes, don't you know you can't post anything about the bible?? Geez. you might find your self stoned.
Both capitalism and increasingly powerful central government point toward electronic money - for one it is simply more efficient and for the other it is a tool to control the masses.
I might suggest that wealthy countries will eventually eliminate "tactile money" (in favor of electronic devices) and that poorer countries will have to continue to use it. This could take another 20 or 30 years to come to pass.
Americans probably don't realize how basic 50% of the world's population still lives.
I am told that I need to be more tolerant, but that Star Wars thingie makes me slightly ill.
So long as there's a desire for private, confidential transactions, there will always be "tactile" money. Even if cash and coin is eliminated, precious metals or even farm animals could be the "money" used in the transaction.
Dude! Star Trek. Making mistakes like that could get you beat up in certain neighborhoods.
(Disclaimer. I am not a trekkie, trekker, star wars religious fanatic or any sort of bizarre, extremist fan, but I do know a trekker, and they're just... weird like that.)
will it slab?
BHNC #203
Money, cash, etc., will be used long after all of us, and our progeny.... and their offspring's offspring are gone.... Sure, there are many popular electronic transactions... phone, online cc... banks....even bitcoins. However, somewhere a deposit of 'value' is held.... and, in addition, the vast majority of people (not just elitist population centers), still deal in cash... as will future generations. Also, the majority of the world's population is still far behind the electronic transfer process. Personally, I use both... but always have a store of cash... in my pocket and elsewhere. In addition, there still exists the barter process... something I have also used... and I know many others do as well. Cheers, RickO
When we buy something at a store we can pay with tactile money (cash) or an electronic payment card. If we use cash we receive the item and leave. If we use electronic payment we receive the item, leave and then later electronically transfer money to pay for the item. We might also receive a rebate (aka 'kick-back') from the electronic payment company. The store must pay the electronic payment company a percentage of the total sale for use of its system - say 2%. To compensate for this 2% deduction, the store increases its selling price of the item by 5%. If we pay with cash, the store pockets the extra 5%. If we use an electronic payment card the store pockets the extra 3% (minus added expenses, if any). The electronic payment company sells data about the transaction to others who use it to design products, manipulate advertising, report your credit transaction, produce robocalls and spam to total value of which is much greater than the 2% fee (minus rebate). More happens, but the point is presented.....Oh, these electronic payment companies also charge you a fee to see your own personal information, and another fee to attempt to correct it, and another fee if they release 125 million personal records and you want to prevent access to your data by others.
The only government role is producing the tactile money.
Hard to predict, but I'm on Ricko's side, at least for another 20-30 years. Bullion transactions are great, but 99% of the populace aren't even remotely familiar with its intrinsic value and I don't see that changing much in a cashless society. If there isn't a tangible monetary instrument to exchange for bullion, bullion loses some of its utility. Weighing out gold dust to make change was tiresome even "back in the day".
Maybe the best barometer is the timing of the disappearance of the $100 note. There are movements afoot already to get rid of it but these haven't (yet) reached critical mass.
Part of me sorta thinks those making the rules will want to preserve ways to move wealth back and forth without a trail.
IDK- just my opinion...The complete switch from tactile to digital will probably happen a lot quicker than what we presently believe. It will be marketed to the public in such a way to provide the belief that the switch is in our best interest. My thoughts are that this could happen during, or, after a financial collapse. With the help of MSM reporting runs on banks, ATM’s out of cash, and the countless people interviewed who can’t get their cash to buy food, medicines, or, whatever life sustaining requirement that takes the cash they desperately need… problem / cause / solution scenario; that the majority would jump on without hesitation. Especially after days, upon days of reporting the desperate straits that so many Americans faced because of that evil greenback! I don't see the switch happening with careful thought, and testing...but rather with a knee jerk reaction that's forced upon us in desperate relief.
I wonder how coin collecting, and silver/gold bullion hoarding would be treated if those draconian measures were in play to eliminate cash?
I predict tactile currency will be phased out within the next few decades. Part of it will be because of the insistence of lobbyists for VISA, Mastercard, and the other card processors. Part of it will be in the name of fighting "terrorism" and to curb alleged money laundering. The remainder will be because the IRS wants to make sure it is getting its chunk of the pie.
I now find myself paying all monthly bills electronically. Saves time and stamps.
As long as the "system" is safe, I will continue to migrate to digital, even down to charging a few dollar purchase. I'll move even faster to 100% digital if the goobermint moves forward in removing historical figures from our paper money.
Lastly, there will always be a need for cash for "less than legal" business to be transacted.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
My digital cameo album 1950-64 Cameos - take a look!
Bought a glass of lemonade from the kids down the block today. Gave them a Kennedy half and they were thrilled.
I do this as well with Kennedys, SBAs, and even an occasional Ike. Most of the time they have no clue what they are.
“In matters of style, swim with the current; in matters of principle, stand like a rock." - Thomas Jefferson
My digital cameo album 1950-64 Cameos - take a look!
Hardly anyone I know under the age of 35 uses cash - it's all debit cards, credit cards and smartphone apps like Venmo. Cashiers frequently don't have enough change these days as well and so they prefer customers using cards. So as someone said above, 20-30 years and cash (and for that matter checks) will be pretty much done.
Whatever you are, be a good one. ---- Abraham Lincoln
Ironically, I watched a sale at the open air Auto swap meet this weekend in Texas.
$14,000 Cash. Counted recounted recounted.
1957 Chevy 2 door convertible rolling shell, no engine, trans, interior, no canvas, but had the folding top, body really not in bad shape.
Did I mention $14,000 cash?
Did I mention there was a lot more in the bag where that $14,000 came from.
Security: Sheriffs on horseback and it seemed every 10th space had a rifle, pistol, or shotgun for sale.
I think money of exchange will slowly disappear as we increase the use of money of account for goods and services. You can do what you can by paying cash for certain things, like coins. And by exercising your ability to make a check. But some transactions are getting to the point where only plastic works.
Tactile money may become collectible before we know it
In China many stores no longer take cash. Mobile phone payments are very popular.
Star TREK! [Nerds will have you for dinner.]
I think you can use digital transfers for "less than legal" business. Yes, you kind of have to launder the payment. But how is the government going to know that your PayPal payment to Freddie Three Thumbs is actually for gambling and not a rare baseball card on eBay?
In fact, coins/bullion have long been used as part of the laundering process for cash. Now instead of having to turn my illegal Benjamins into gold in order to turn my gold back into legal Benjamins, I jjust have my meth tweakers buy "bullion" from eBay which becomes a laundered cash payment to me! Actually saves me a step!
Perhaps. But since they are already discussing/planning for how such a switch would happen, it WON'T be a knee jerk reaction. It will have been planned with the "emergency" allowing for rapid implementation. Kind of like the Patriot Act.
Digitally...
My only concern is what happens if a major hack brings down the financial/banking systems for more than a few days. You can be wealthy on paper (or just making ends meet) one minute, and destitute the next, if records of your holdings are erased or tampered with. Not that it couldn't already happen to most of your money in banks, Fidelity/Vanguard/Schwab, etc, but I sure there are a lot of people out there who feel comfortable with at least a LITTLE amount of cash under the mattress...........