The global war on cash, initiated by some of the world’s major economies and governments, is beginning to affect financial ecosystems.
According to various sources, the use of cash in countries such as the United States, South Korea and Denmark has declined drastically and is expected to decline further in the future. As cash continues to devalue, bitcoin is becoming a strong alternative to the money issued by the government.
The Danish central bank, also known as Danmarks Nationalbank, has long considered replacing cash with a Blockchain-based currency called E-krone. Using its national currency as the Danish crown, the Nationalbank is considering replacing cash with an electronic form of money.
Lars Rohde, the governor of the Danish central bank who oversaw the bank’s cash press for years, said in an interview that cash use in Denmark had already fallen below 20%. He also noted that the rest of the Danish population depends on online banking systems or alternative financial service providers to settle payments and transfer assets. However, just like any currency or centralized digital asset e-krone does not constitute an efficient form of money, since it is not decentralized. The e-krone provides the Danish central bank with a high level of control, which would ultimately lead to compromising security and privacy.
The United States is home to some of the largest fintech and bitcoin companies in the world, is also seeing a drastic change in payments and financial settlement. Recently, the leading law firm Paul Hastings issued a research paper stating that non-cash payments in the United States and U.K. Will reach $ 46 trillion and $ 1.75 trillion, respectively, in 2026.
This means that, within the next decade, cash transactions will account for only 24% of all payments in the United States, and 76% of all transactions are handled with non-cash payment methods and networks.
Although Accenture, a multibillion-dollar research firm, recently pointed out in an article entitled “Global Fintech Investment Growth continues in 2016 driven by Europe and Asia” than the US. Is falling behind Asia and Europe in terms of fintech investment and start-up growth, which can be attributed to the government’s inability to present practical regulatory frameworks.
South Korea’s mainstream media and leading research firms such as Chosun, the country’s largest media network, have carried out a number of research initiatives to exploit the potential and practicality of a cashless society.
Interestingly, instead of looking for alternatives such as e-money or Blockchain-based systems Chosun and South Korea’s mainstream media are optimistic towards bitcoin which has already established a market cap higher than many Currencies. In fact, several leading analysts and experts led the research about bitcoin and the possibility of using bitcoin as an alternative to cash.
South Korea has already announced its definitive plans to demonetize the currencies by the end of 2020. Instead of receiving coins, users would have to enter credit card details for the coins to be sent to their bank accounts. Bitcoin could make this process easier, safer and more efficient for the general population.
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