NYT article on how the use of cash in China is rapidly dwindling
CaptHenway
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Somehow I am not encouraged by the thought of having the counterfeit coin and bullion seller Alibaba handling my bank account.
Numismatist. 50 year member ANA. Winner of four ANA Heath Literary Awards; three Wayte and Olga Raymond Literary Awards; Numismatist of the Year Award 2009, and Lifetime Achievement Award 2020. Winner numerous NLG Literary Awards.
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In a sense you can't blame them. Given the amount of counterfeiting that goes on over there, a great deal of cash and coins is probably suspect.
In a sense we are going in that direction here. I use my credit card a gread deal these days, and pay off the balance every month. I wrote checks for coins almost 100% of the time. Credit cards are not good for coins because of the transaction fees.
I do not see cash being replaced, at least not for the next 100 years. Cash is to fundamental to a majority of people. Sure, many use credit cards now, almost exclusively.... but far more still employ cash. Much will have to change to eliminate cash - and giving control of one's assets to the cyber world will not be easy for the majority of people. Cheers, RickO
Will there be a Visa Cashless Challenge for dealers? To move the US to a cashless society, Visa is offering $10,000 to restaurants to stop taking cash:
http://money.cnn.com/2017/07/14/news/companies/visa-no-cash-restaurant-initiative/index.html
My credit union pays 2.5% on a minimum balance of 25K/yr (emergency fund), which works out to $625/yr. But, ya need to conduct twelve credit card transactions/mo greater than $5.00 value and one electronic transfer per month to qualify.
$625 helps with my periodic coin purchase.
On the other hand....the CU is probably making more money than i am, CU is collecting data of my gasoline purchases and selling it in a collective bundle, I suspect.
I don't see evidence of a preponderance of cash in transactions, rather it's all card swipe, data collection.
Maybe you mean coin deals.
@epcjimi1 .... No, I am referring to deals I see every day in the supermarkets, restaurants, antique shops, fast food joints, stop and rob shops, hardware store and books store. Cash is king... sure, a lot of CC transactions, but mostly cash. At least in my area that is....Cheers, RickO
Huh.
Not here, not what I see.
@epcjimi1 .... No doubt there are differences in demographics....urban vs. rural, north vs. south, east vs. west... etc.. We often tend to view things from our personal perspective. That being said, I have not read any extensive research on the subject, so it could go either way. Cheers, RickO
Yep, I get it.
My point is, just like my CU collects data from my mandatory credit transactions to get 2.5% return, imagine the data collection going on on those poor f*ckers in China. Their lives are getting mapped.
Cash can't be hacked
WOW that is the opposite of around where I live- hardly ever see cash transactions anymore..supermarkets, rests etc are almost all cards- and I look because been curious about this subject.. maybe because a lot of college and tech where I live skews it.. but we even kid the cashiers that they wouldn't even know how to make change
Sure it can - ever heard of counterfeits?
ANA 50 year/Life Member (now "Emeritus")
Out of amusement I offered my retailer $15,000 (!!!) to keep accepting cash!!
They told me they wanted to accept the $10,000 ViSA offer but accept cash anyway.
I almost NEVER use a card. Only when there is no choice.
I'd volunteer to be the bouncer who escorts people who don't know how to USE theirs to the rear of the store for severe beatings.
recently back from major city in china
I saw transactions via phone.
there is still plenty of cash exchanging hands, though.
I can't help but think of India and cash transactions to hide income. I'm surprised that mom & pops are foregoing cash.
Also that one picture with a line does not seem to show any other definite food vendors in the area.
my chip card repeatedly failed. Cash only for us.
it is also interesting to note that the 100 RMB/Yuan is the big bill** that gets checked with suspicion in china. and prices in major city were cheaper than the states but have moved up from the last visit a few years ago. mcd's was about 1/2 of the us, maybe a bit more expensive than that.
**do the conversion. They have no need to pull large bill in china like they did in india.
Lots of ways we would go effectively cashless.
Roll out a new coins 5c 20C $1 $2 $5 coin, and stop printing/coining everything else.
Charge a 10% premium to get the "new" coins from the bank
Put an expiration date of 6 months into the future, like when the Euro was rolled out, on all old coins and paper money.
Put a 5% rebate on all "cashless" transactions.
Pay a 10% premium on "old" coins for redemption.
Limit cash redemption to $2000 per SSN
In 6 months, most of the cash will be gone.
At $2K per SS #, cash will last a lot longer
than 2 years out there
Considering the hefty gold and precious metals' trades in China and India, I don't foresee cash/precious metals going away and time in the near future. The Chinese (public and central bank) have been accumulating cash/gold for the past 10-15 years, just the opposite of western societies.