Cash won’t get redundant in the near future, even with the increasing shift towards cryptocurrencies and other types of digital currencies, a report by Deutsche Bank researchers revealed.
The report published earlier this month argued that despite the popularity of cryptos and the apparent war in some countries over cash payments, the end of the cash age is not near.
One quote from the report reads:
“Cash is unlikely to disappear anytime soon. However, a real digital payment revolution has been underway for the past ten years. Cash is losing ground as a payment method. Several countries have recently removed large notes worth $100 or more and implemented policies to replace traditional payment methods with digital solutions.”
Electronic payments have become the standard in Asia in recent years with paying online platforms such as Alipay and WeChat seeing increasing number of transactions. For China, the war on cash often falls in line with attempts by Beijing’s authorities to gain greater controls over the financial dealings of its citizens.
On the other hand, Malaysia and Australia are looking to curtail cash transactions. According to the report, the majority of cashless drives by different governments are aimed at eliminating large currency notes which the researchers say are mostly used for deals in the black market.
Nonetheless, researchers at Deutsche Bank sees that the end of cash is not close as several studies show that people still prefer to hold cash in the face of growing financial and political uncertainties.
Even billionaires are sharing the same concept, like Warren Buffett, as they seem to be growing their assets in cash. Reports revealed that Buffett’s Berkshire Hathaway has a $128 billion cash pile — the biggest cash bucket in the company since before the 2008 crash.
In a separated context, Tim Draper, a billionaire investor, advised millennials to buy Bitcoin, as he sees that Bitcoin is of particular importance to millennials looking to keep ample money for retirement, claiming that the conventional banking system is outdated