Why do we even have physical currencies in this day and age?

[Elegiac]

I don't think I've carried cash or coins since 2009. I have used cheques occasionally, but since the introduction of cheque deposit ATMs this has been far less of a hassle than it used to be.

As to why we have physically currency, it is a matter of public preference; people in general prefer tangible representations of their liquid wealth. After all, look how long it took to switch to just paper currency.

[Gavril]

I wouldn't be comfortable with banks/government having access to all my personal records essentially if needed which they would have if currency was abolished. I also agree that only low level crime relies on cash as a float the higher end runs it all through business and while crime is bad it does put money back in to the economy.

[breadisfunny]

Heaven fucking forbid they get a job
Cash is now nearly pointless and should be condemned to history

and if all electronic systems are disabled(via emp/solar flare/cme/natural disaster.) you now have to revert back to cash or some form of physical currency. a lot people will not work for free. society is simply not ready for 100% electronic currency. don't forgot about other 3rd world countries that may not have a electronic banking system set up? should we exclude them from the rest of the world simply because they dont have computers in every home?

[Elegiac]

and if all electronic systems are disabled(via emp/solar flare/cme/natural disaster.) you now have to revert back to cash or some form of physical currency. a lot people will not work for free. society is simply not ready for electronic currency. don't forgot about other 3rd world countries that may not have a electronic banking system set up? should we exclude them from the rest of the world simply because they dont have computers in every home?

If you look at the percentages, surprisingly little money exists as liquid cash. Really, most first world countries already operate with a de facto electronic currency - the difference is, under such a switch said currency would not be redeemable for any sort of legal tender, but given how little already is redeemed it's not particularly a big change.

Modern industrial society already relies on electronics to such an extent that such events would be disastrous, retaining a cash economy would do nothing to alleviate the effects. When that sort of financial collapse happens, the money economy tends to break down anyway.

As regards the countries of the third world, computers and point of sale EFT devices are now so cheap that countries lacking them don't tend to do much trading in liquid currency regardless. Additionally, they tend to be of little financial relevance anyway.

[breadisfunny]

If you look at the percentages, surprisingly little money exists as liquid cash. Really, most first world countries already operate with a de facto electronic currency - the difference is, under such a switch said currency would not be redeemable for any sort of legal tender, but given how little already is redeemed it's not particularly a big change.

Modern industrial society already relies on electronics to such an extent that such events would be disastrous, retaining a cash economy would do nothing to alleviate the effects. When that sort of financial collapse happens, the money economy tends to break down anyway.

As regards the countries of the third world, computers and point of sale EFT devices are now so cheap that countries lacking them don't tend to do much trading in liquid currency regardless. Additionally, they tend to be of little financial relevance anyway.

that's not an excuse to exclude them from the rest of the world.

[v2prwsmb45yhuq3wj23vpjk]

If it was up to me, I'd remove all electronic currency(but leave it in as a convenient alternative) and paper currency and reintroduced precious metal coins.

Why? Because that would give money a real value instead of worthless paper of a few bytes in some computer that could be gone if some decides so. With precious metal currency, the whole country can fall but money would still be valuable. This would also stop governments from being able to devalue money by printing more of it on a whim. Make more coins? Gold is still gold and silver is still silver so you wouldn't lose anything from it.

Except the idea that 'precious metal coins' are any more valuable than a dollar bill is ridiculous. Gold has no inherent value, it has the value that we give it. You know what else has the value we give it? Paper money.

[Palmatum]

I very rarely use cards unless it's for large transactions. In the unlikely event that I'd get robbed, I wouldn't want my bank cards on me.

I normally carry a few hundred pounds if I'm just going out and about, to and from meetings and the like, but if I'm going into the city to do some shopping then I'd rather just take a few grand in cash and lose that if I was mugged than lose my card and lose ridiculous amounts.

[Elegiac]

Except the idea that 'precious metal coins' are any more valuable than a dollar bill is ridiculous. Gold has no inherent value, it has the value that we give it. You know what else has the value we give it? Paper money.

Not to mention the following drawbacks:

1) Inflation is not dependent on economic growth, but the amount of available specie
2) It removes monetization as an option for economic regulation
3) Monetary policy becomes harder to formulate and enact
4) It oftentimes tends to artificially inflate the value of specie regardless

---------- Post added 2012-12-22 at 05:24 PM ----------

I very rarely use cards unless it's for large transactions. In the unlikely event that I'd get robbed, I wouldn't want my bank cards on me.

I normally carry a few hundred pounds if I'm just going out and about, to and from meetings and the like, but if I'm going into the city to do some shopping then I'd rather just take a few grand in cash and lose that if I was mugged than lose my card and lose ridiculous amounts.

Why? It's actually financially safer to have bank cards rather than cash. In the former case, you can immediately call up your bank and have them terminate the cards. In the latter, you just lost several grand.

[Kaleredar]

The better question is why do we even have currencies at all in this day and age? Money is simply a game that people choose to play. A small portion "wins" and gets to be at the "top" and the rest struggle to be in the middle or at the bottom.

Money causes more issue's than it fixes (famine, crime, poverty, power, greed, death, ect..). The problem is people are raised with money and don't know any other way of existing, So it's easier for them to stay with the current way of things.

Because communism doesn't work.

[crakerjack]

And how do you propose I give my dealer money? Should I go ask him to pull down his pants and swipe my debit card? LOL! Just because you have no need for physical currency, doesn't mean the rest of the world doesn't.

[Elegiac]

that's not an excuse to exclude them from the rest of the world.

Really? Well then the answer is simply; I don't care. It becomes massively difficult to manage a national economy when you have to worry about supranational effects on tinpot kleptocracies.

---------- Post added 2012-12-22 at 05:25 PM ----------

And how do you propose I give my dealer money? Should I go ask him to pull down his pants and swipe my debit card? LOL! Just because you have no need for physical currency, doesn't mean the rest of the world doesn't.

Have him spend 10 bucks on a card reader for his phone.

Again, in terms of percentages the vast majority of money doesn't exist in cash.

[v2prwsmb45yhuq3wj23vpjk]

Why? It's actually financially safer to have bank cards rather than cash. In the former case, you can immediately call up your bank and have them terminate the cards. In the latter, you just lost several grand.

Not if you store all of your cash in a safe behind a painting in a secret room beneath your floorboards and only take out what you need at any given time.





Aaanyway, as for the topic, we should have physical currencies for a little while longer at least. I don't want to have to buy a smart phone to convenient spend money when I'm only paying $8 or less a month for my current phone. The technology is relatively new and expensive.

[Elegiac]

Not if you store all of your cash in a safe behind a painting in a secret room beneath your floorboards and only take out what you need at any given time.

Why would you save cash? If civilization collapses it's going to be worthless anyway.

[breadisfunny]

Really? Well then the answer is simply; I don't care. It becomes massively difficult to manage a national economy when you have to worry about supranational effects on tinpot kleptocracies.

---------- Post added 2012-12-22 at 05:25 PM ----------



Have him spend 10 bucks on a card reader for his phone.

Again, in terms of percentages the vast majority of money doesn't exist in cash.

so we should exclude millions of people because you dont care?

[Elegiac]

so we should exclude millions of people because you dont care?

Pretty much. National interest and the balance of power come first.

---------- Post added 2012-12-22 at 05:30 PM ----------

Aaanyway, as for the topic, we should have physical currencies for a little while longer at least. I don't want to have to buy a smart phone to convenient spend money when I'm only paying $8 or less a month for my current phone. The technology is relatively new and expensive.

Agreed. Perhaps another decade or two for the technology to come down in price.

[mistuhbull]

Have him spend 10 bucks on a card reader for his phone.

Again, in terms of percentages the vast majority of money doesn't exist in cash.

Dat paper trail.

Now obviously, we shouldn't be designing currency policies around criminal activities, but there are times where it is very nice to be able to have monetary exchanges that are very hard/impossible to trace. (paying the neighbor kid to mow your lawn, if it's in checks and such there is a possibility you could run into "employment" issues)(Also being able to pass someone 10 bucks towards a meal/movie and have it be theirs immediately

---------- Post added 2012-12-22 at 05:36 PM ----------

Because communism doesn't work.

Communism has never existed

[Elegiac]

Dat paper trail.

Now obviously, we shouldn't be designing currency policies around criminal activities, but there are times where it is very nice to be able to have monetary exchanges that are very hard/impossible to trace. (paying the neighbor kid to mow your lawn, if it's in checks and such there is a possibility you could run into "employment" issues)(Also being able to pass someone 10 bucks towards a meal/movie and have it be theirs immediately

Currency doesn't exist to cater to unlawful or exceptional exchanges.

Fuck, I even know strip clubs that take card.

[Palmatum]

Not to mention the following drawbacks:

1) Inflation is not dependent on economic growth, but the amount of available specie
2) It removes monetization as an option for economic regulation
3) Monetary policy becomes harder to formulate and enact
4) It oftentimes tends to artificially inflate the value of specie regardless

---------- Post added 2012-12-22 at 05:24 PM ----------



Why? It's actually financially safer to have bank cards rather than cash. In the former case, you can immediately call up your bank and have them terminate the cards. In the latter, you just lost several grand.

Because I had issues before with someone spending 80,000 euros on a card and the card company refused to refund it, despite the fact happened within the 30 minutes it happened and I called them. I'll take my chances with cash.

[mistuhbull]

Currency doesn't exist to cater to unlawful or exceptional exchanges.

Fuck, I even know strip clubs that take card.

And I know substantially more that won't. Hell I know corner markets that don't take cards. And for California at least, a decent number of Medical Dispensaries operate on cash only due to some issue with banks not recognizing the business as legitimate to set up a business account

[Elegiac]

Because I had issues before with someone spending 80,000 euros on a card and the card company refused to refund it, despite the fact happened within the 30 minutes it happened and I called them. I'll take my chances with cash.

The answer to this is get a card with a low spending limit for everyday transactions. Duh.

---------- Post added 2012-12-22 at 05:42 PM ----------

And I know substantially more that won't. Hell I know corner markets that don't take cards. And for California at least, a decent number of Medical Dispensaries operate on cash only due to some issue with banks not recognizing the business as legitimate to set up a business account

There really is no excuse not to take card now, apart from 'service fees'. Which can be easily remedied through tax write-offs to service fees for EFTPOS and similar devices.