Many companies have pushed toward consumers using plastic or their smart phones to make payments because it is safer, cheaper, and more convenient, they argue. Companies in the cash industry, however, disagree and are fighting to keep cash as the preferred form of payment. These companies depend on cash for the livelihood of their business and want to keep cash around. The article points out that the cash production isn't in trouble exactly because the value of currency help by the public has been rising as a percentage of GDP in the U.S. A survey by the Federal Reserve revealed that Americans had an average of $59 in cash at any given time. Why is cash continue to be popular? Some point to the low interest rates that have created little incentive to put cash in banks. It will be interesting to see how these numbers change in future years with forms of digital payment continue to grow in popularity.
http://money.cnn.com/2017/11/11/news/economy/cash-digital-payments/index.html?iid=hp-stack-dom
I think this is a very interesting article. Low interest rates could definitely cause little incentive to put cash in banks and that could be why more people are keeping money. I think this could also be a matter of personal preference. Some may feel as though they spend less money when they have physical cash, rather than just using a credit card. I personally carry around more cash than normal because I spend less money when I am physically seeing my money supply go down, rather than just swiping a card. However, some people choose to use plastic or their smart phones because it is less to carry with you. The ease of just swiping a card or putting your phone to a sensor can be very helpful. I, too, am interested to see how the numbers change in future years with new forms of payment growing in popularity.
ReplyDeleteUsing digital currency could be difficult in the cannabis industry right now because I believe there are several companies that can only take cash because of legal problems. However, I do believe we will be using entirely all digital currency sooner than we expect especially with the growth of bitcoin here recently. I personally hate using cash and believe it is the worse form of investment you could have.
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