Canadian Politics Today

Not an exciting topic, but it's one I've often wondered about:

"real" money (coins and notes) are about 2% of the entire money supply in the United States. The rest of it is on the books in banks and other financial institutions, stored electronically. I am assuming it's the same in other developed countries; and for good reason. This of course speeds up commerce, and makes it a little easier on merchants who cannot store as much physical money. It's safer to carry a debit card that transfers a bunch of electrons from your bank's account to the merchant's account directly, at point of sale, than it is to carry around a $h*tload of hundred dollar bills when you want to go shopping. You can also Zelle or Pop money to other people right from your cell phones rather than handing someone a $20 bill when you lose a bet.

It makes me wonder, by when will physical money be dead? Is there still a use for it? Someone from Sweden told me his country is considering a referendum on killing paper/coin money and going 100% digital.

(Pity if so, because I collect it. I've got a whole dictator's hall of fame in my paper money collection. Better snap up some kroner before it's been demonitised.)

This of course doesn't take into account cryptocurrencies like Bitcoin. Still, one wonders exactly what the future of money will be.

I assume it's the same in Canada, people use debit cards more than they use bills and coins with H.M. pretty face on it. Is Canada in danger of going 100% digital?

If so, why do they keep updating money with better (and probably more expensive) security features, changing from paper/cotton to polymer notes? The UK just introduced a new pound coin because the old one was getting counterfeited quite a bit. One wonders why they would do it if they intend to go all-out digital any time this century.

IMO, paper banknotes and coins are still pretty useful. But whether you hand someone a $5 bill, or digitally transfer it to them, it's still all fiat money.

See my thread about MMT.

The digitization of money is inevitable, and part of the evolution of it disappearing altogether.

Oh well. Better start snapping up foreign banknotes whilst it still exists! bad news for drug dealers, and old people. And just as the U.S. was making more interesting money, and promising to put Harriet Tubman on the $20 to replace Pres. Andrew Jackson.

I find it odd, though. The UK still has no fewer than eight coins in its monetary arsenal (1p, 2p, 5p, 10p, 20p, 50p, £1 and £2). Odd for a western country where the money might be replaced eventually! Egypt has only paper, I think. Lots of countries have replaced cotton with polymer as I said. Again, odd for countries where you'd think digital would replace "real money" entirely, assuming developed nations will be the first ones to do it.

As an interesting aside, you know the expression "Queer as a $3 bill"? Bahamas actually makes one, and I have it. I actually have "LSD money" (United Kingdom pre-decimal, a whole set.)

Why old people?

Down here I have noticed that they are more resistant to technology and whatnot. Many dislike using computers or don't know how, so that nixes checking their account balance all the time like the rest of us. They avoid the self-checkout lines at the grocery stores and even write checks instead of using a debit card.

The US is kind of backward, just getting into chip and pin, tap unavailable in most places and many people still use cheques in grocery stores.

I wouldn't jump into buying a bunch of cash before it is demonitised but if you like the idea, I have some Guilders, Deutschmarks and French Francs I can sell you cheap.

Physical money isn't going anywhere.

Too useful for drug dealers and other nefarious users. Probably why the EU canned the 500 and 200 Euro notes.

According to a friend of mine, they used to call the 500 Euro note "the bin laden" (while he was still alive) because nobody's seen it but everybody knows it exists.

Physical money isn't going anywhere.

Bullshit.  At least give a timeframe...

A timeframe for not going anywhere?   Why would he need to do that?  If you’re saying paper money is dead, it’s you who should be providing a timeframe.

I'll happily take care of any/all money anyone has that they feel is dead.

A timeframe for not going anywhere?   Why would he need to do that?  If you’re saying paper money is dead, it’s you who should be providing a timeframe.

Wow, that's a brain flipper.

Let's see.... Well ...

I dunno.  I'm saying paper money will die and he says it won't.  I think you're right: it's up to me to give the timeframe.  I will say it dies in the next 50 years.

But he said it will NEVER die... Effectively.  I think it's bullshit to say never