Perhaps you know someone who carries no cash. Maybe that someone is you. Ten or 15 years ago, it would have been anomalous and occasionally frustrating to go through the day without any bills or coins on you. Now, not so much.
In 2018, Americans used debit cards more than cash at the point of sale for the first time, according to a Federal Reserve survey. This year, many merchants have encouraged cashless payments to discourage money from changing hands, an effort to reduce the threat of COVID-19 transmission.
Given developments like these, will cash disappear within a generation or even a decade?
The chance of that happening still seems small, at least on a macro scale. In fact, the value of cash in circulation has risen in developed nations since the 2008-09 credit crisis, according to Bloomberg. Digital payments are common in some countries, yet still uncommon in others. China, which possesses the world's second-largest economy, is planning to introduce its own digital currency in the near future – but most consumers in India, the world's fifth-largest economy, rely on paper currency. In America, it appears that coins and bills are not going away just yet.1
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Citations
1 -Bloomberg.com, April 14, 2020