Could Digital Currencies Replace Cash in the Future?
Modern technologies enable the development of payments and global competition. The ambiguities surrounding the digital currency leave enough room for analyzing its unreserved acceptance, trust, and anticipation, which are the main drivers for the spread of the network. But is it possible that digital currencies or cryptocurrencies could one day completely replace cash?
Although physical currency is still widely used in most countries, consumers around the world routinely conduct non-physical currency transactions using credit cards or cell phones to pay.
C programmer in blockchain development
C is a very similar language to Java or C ++. The C ++ programmer is used in some popular blockchain projects, one of the most popular is NEO, which is called the Chinese version of Ethereum.
C ++ is a strongly statically typed, fast, object-oriented, compiled language. What is essential is the fact that C ++ has high efficiency and access to hardware. What is interesting — when hiring software developers — C ++ was created in the 70s-80s as an extension to C.
C ++ is used in many popular blockchain cryptocurrencies and important blockchain projects like
- Bitcoin (best-known cryptocurrency)
- Bitcoin Cash (cryptocurrency)
- Ripple (centralized ultra-fast currency)
- Litecoin (cryptocurrency)
- EOS (fast blockchain network with its own cryptocurrency called EOS)
- Monero (cryptocurrency)
- QTUM (a kind of hybrid between ether and bitcoin)
- Stellar (payment network, one of the founders is the creator of eDonkey)
- Cpp-ethereum (C ++ implementation of ethereum) used.
Why trade cryptocurrencies?
When trading cryptocurrencies, speculate whether the market you choose will gain or lose in value. The advantages of trading crypto-electronic currency include:
- Immediate settlement: When buying real estate, for example, some third parties (lawyers, notaries) are usually involved in paying fees and delays. In many ways, the bitcoin/cryptocurrency blockchain is like a “big IP database”.
- Recognition on a universal level: Since the cryptocurrency is not tied to exchange rates, transaction fees, interest rates or other fees in any country, it can be used easily on an international level. The cryptocurrency works on a universal level, making transactions fairly easy.
- Lower fees: There are usually no transaction fees for cryptocurrency exchanges.
- Access for everyone: There are approximately 2.2 billion people with access to the Internet or mobile phones, and these people are well equipped for the cryptocurrency market. For example, the Kenyan M-PESA system, a cellphone-based money transfer and microfinance service, recently announced a Bitcoin device, and one in three Kenyans now has a Bitcoin wallet.
- Identity Theft: When you give your credit card to a merchant, you give him or her access to your full credit line, even if it’s a small amount transaction. Cryptocurrencies use a “push” mechanism that allows the cryptocurrency holder to do exactly what he wants without sending additional information to the merchant or recipient.
- Decentralization: A global network of computers uses blockchain technology to jointly manage the database that records Bitcoin transactions. C developers have done an excellent job here. That said, Bitcoin is managed by its network and not by a central authority. Decentralization means that the network operates on a user-to-user (or peer-to-peer) basis.
How digital currencies can replace cash
One of the leading economists Marion Laboure believes that once a regulatory framework is established in key regions of the world and government-backed development towards cashless societies continues, cryptocurrencies have the potential to replace cash by 2030.
The two main markets will be China and India, both of which have a strict stance on trading crypto-electronic currencies. However, India is striving to move to a cashless society to combat its shadow economy, and China plans to introduce a “blockchain-based” version of the yuan.
According to Laboure, three hurdles must be overcome so that cryptocurrencies can replace cash. This includes
- obtaining legitimacy in the eyes of governments,
- the demand for a robust digital financial system that can contain cyber attacks and other potential risks for a purely digital payment market, and
- building alliances with the broader payment industry.
The cryptocurrencies defy the age-old monopoly of central banks over spending money. With the prospect of digital tokens replacing fiat currency, central banks are now examining the idea of a digital currency issued by the central bank. In simple terms, a CBDC (Central Bank Digital Currencies) is a digital currency that is secured or guaranteed by a reserve bank and can be used as a means of payment and unit of account. That way, there is nothing standing in the way of replacing your cash, but it will take a few more years.
Author: Marko Vidrih
Featured image credit: Pixabay