These days it feels like everything is going digital. Will currency follow suit? It may seem far-fetched to think that currency could go totally digital. Nevertheless, people already depend heavily on credit cards and online auto-payments to pay their bills. Gas stations, parking meters, and even vending machines take plastic now and many people don’t carry cash anymore. So we might not be that far off from ditching paper money after all.
The Bitcoin revolution?
Bitcoin has been around since 2009 and is a peer-to-peer digital currency.
It can be used to purchase products and services online. The technology behind Bitcoin is considered to be impossible to hack, which assists in easing most security concerns.
Bitcoin is not technically a legal tender and for that reason many, if not most, retailers outside the Bitcoin user database won’t accept it. It is quite possible another alternative digital currency may pop up and over take Bitcoin, becoming more mainstream compared to the innovative Bitcoin.
The digital currency model
The advantages to moving away from paper-based currency are numerous. Aside from misplacing a gift card, it is not easy to lose digital currency. You don’t have to worry (as much) about not having enough funds on you to cover an expense. Digital currency is also more eco-friendly, since the need to replace damaged or outdated paper currency is removed.
Digital currency may be more secure than paper money, too. When you are robbed as you are walking down the street, you have little chance of recovering the money. However, if a person steals your credit card, you can quickly cancel the card, safeguarding yourself financially. The identical scenario could easily exist with your digital dollars.
It’s unlikely the change to an all-digital currency world will be met without a few strong objectors. There are still consumer luddites today that have never opened a line of credit with a credit card company, never used the banking system, and prefer to handle all purchases with cash. The future is always in flux and it will be interesting to see how both sides of the debate form their stance on the issue.