Comments on: The case for the death of cash by the hand of digital currencies https://rossdawson.com/case-death-cash-hand-digital-currencies/ Keynote speaker | Futurist | Strategy advisor Thu, 18 Jun 2020 04:19:13 +0000 hourly 1 https://wordpress.org/?v=6.9.4 By: Ross Dawson https://rossdawson.com/case-death-cash-hand-digital-currencies/#comment-4063 Thu, 14 Nov 2013 22:32:00 +0000 https://rossdawson.com/?p=6687#comment-4063 In reply to Geoff.

I absolutely agree Geoff, this is a central issue, and I should have included it.

This does mean an additional advantage of digital currencies is that they entirely bypass (today’s) financial institutions and superfluous costs.

In the meantime there is strong pressure to reduce transaction fees, and the ‘intermediate’ payment mechanisms from startups are helping to provide more competition in this space. But it will be a while before payment costs are what I would consider sane and reasonable.

]]> By: Geoff https://rossdawson.com/case-death-cash-hand-digital-currencies/#comment-4062 Thu, 14 Nov 2013 22:17:00 +0000 https://rossdawson.com/?p=6687#comment-4062 G’day Ross, I think you’ve left out a major factor – the [exploitative] nature of financial organisations. Many years ago as credit cards were being introduced, one advantage often touted was savings for both banks and companies from reducing the security costs of looking after cash. However, it didn’t take long before fees were introduced to cover the cost of using cards – on top of exorbitant interest rates from a consumer perspective.

It is now routine to pay additional fees for having the temerity to use almost any form of digital transfer. In many ways, cash has now become cheaper to use – or at least the perception is that it is cheaper. It also minimises the opportunities for financial institutions to slug on late payment, overdrawn balance and similar fees, sometimes even in circumstances of dependence on which transaction they elect to process first. These fees are often added even in circumstances of minor infringements.

Digital cash outside of controlled financial systems may have attraction but there will be a lot of distrust to overcome before we move all the way to a formal digital system.

Cheers, geoff

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