Will paper money be replaced and the current banking system changed?

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  1. IntimatEvolution profile image80
    IntimatEvolutionposted 7 years ago

    Will paper money be replaced and the current banking system changed?

    Write a hub on the how the banking system in the Western hemisphere might change and how that will effect today's paper money system.

  2. syzygyastro profile image80
    syzygyastroposted 7 years ago

    Paper money is currently being replaced with electronic credit-debit systems. But a mere change in format will not end money woes, especially if the current ways of interest manipulation do not change. As long as the existing banking system is in place, there will be no change as far as money manipulation will occur. Banks currently lend money on what is called fractional reserve lending. This means that they loan out far more than they actually have and charge and handling fee (interest) so that they can increase their money supply as a hedge against financial collapse should trust be lost in the banks,

    Then there is the problem of counterfeiting which has plagued the coin and paper money supply. E-banking is not immune from this either and is some ways is easier to counterfeit. In any event, paper money is under the process of being phased out. One of the ways this is done is to make it worthless and we can see an example of this in history in post depression and pre-Nazi Germany where the Reich-mark devalued so much under the terms and influence of the Versailles Treaty, that if became virtually worthless.

  3. Clarke Stevens profile image73
    Clarke Stevensposted 7 years ago

    Paper money seems like a pretty useful invention, so I don't expect it will disappear too soon.  The uproar about currency and money these days is that it's a fiat system -- which basically means the government promises to make good on the value, but isn't required to maintain an asset (like gold) to back that value.  So a government that needed more money could simply print more.  This could cause problems for the rest of us who hold that currency.  And this might be an area of the banking system that gets changed someday.  But this would be a major change, and probably wouldn't happen until we ran into major crisis first (that's how politics works). Until then, it all probably stays the same.

  4. kevrock529 profile image61
    kevrock529posted 7 years ago

    Well with the way the market is looking we are going back to the Gold standard! The value of an ounce of gold is now over $1700. I would rather Gold than paper money at this point!

  5. LegendaryN8 profile image57
    LegendaryN8posted 7 years ago

    I don't think we could ever hinge our money on a standard because it would be subject to the whims of inflation and market hedging.  While paper money still is exposed to this problem, it's a lot harder to corner the market on paper currency than it is (to say) buy up a large bulk of the gold reserve and resell it at a considerably higher price.

  6. Borsia profile image43
    Borsiaposted 7 years ago

    The government, more specifically the Federal Reserve, wants to convert to all plastic or some other form of "secure" currency.
    They want this so that they can monitor and control you and your money and to get rid of the underground economy, which is around $800 Billion in the US today, some estimates are higher.
    Likewise they want to stay away from any form of currency that is based on any real value, like gold, because they want to control the value of your dollars.
    They are trying to chip away at currencies any way they can. They spend billions t try to convince you that plastic is better for you and they are trying to go back to using coins, because they are impractical for us.
    But all of these things are aimed at the ultimate elimination of real money because they want to be able to charge a fee on every penny you spend, and they want to know exactly what you spend, where and with whom.
    If they own your money they own you and that gives them ultimate control over your life for their benefit.

  7. texaspatriot84 profile image60
    texaspatriot84posted 7 years ago

    Well, paper money will be eliminated in the next twenty to thirty years, however I don't see it going anywhere soon. First the world will have to unite under one currency before physical money can be dismissed. If you look at the current economic crisis plaguing not just the U.S, but the entire global economy. You will see that China, Russia, Japan and other G20 country's want to ditch the U.S dollar and create world currency... If that happens, you will probably see the end of current banking system and the end of paper money.

  8. thranax profile image40
    thranaxposted 7 years ago

    If you don't remember we were suppose to be a paperless society years ago. Alas that failed and we still have money, newspapers, books, and other papers.

    Although not paperless, each individual has the option of being almost paperless. Paying bills online, direct deposit your paychecks and only buy with credit/debit cards. Buy a kindle or tablet pc and read all books/newspapers on them.

    Essentially, other then Birth Certificates, Degrees etc we have the possibility of being paperless. I myself am not ready to give up my printer/scanner wink.

    ~thranax~

  9. bloggingguide profile image58
    bloggingguideposted 7 years ago

    Yes!

    We are going paperless now. The newer generation are unlikely to carry a lot of cash in hand. For me, I prefer to use credit card for big amount of purchase and don't carry lots of cash in my wallet. It keeps my wallet last longer as well without those pile of cash folding in it smile

  10. supplies expert profile image59
    supplies expertposted 7 years ago

    No paper money will not be replaced by credit cards or even the smart chips in cell phones.  Although I personally use only credit or debit cards and I have direct deposit into my accounts. I use it for the reward points, and the fact that it's just easier for me to manage my money, but the money I spend for recreational use for my own personal fun, I typically will take cash out of the ATM.  Either way, I don't think paper money will go away because how would you be able to make a friendly bet with some friends, or a fun poker game, are you all going to sit there and exchange eachother's bank account #'s to transfer money to eachother, I don't think so.

  11. poshcoffeeco profile image80
    poshcoffeecoposted 7 years ago

    The way that banking and finance is going at the moment all around the world I can see a time when we will be going back to shoeboxes and calculators because every country is going bankrupt.
    All have massive debts and will never pay it off.
    China had the right idea.
    Sell products overseas.
    Don't buy from overseas and use the wealth accumulated by this to loan money to other countries therefore not having any deficit.
    Problem is they don't spend enough with foreign countries to give them some money back to reduce their deficits.

  12. cejae profile image58
    cejaeposted 7 years ago

    Things are looking poor for the US dollar and if the Fed keeps printing money things may get very bad.  It is too bad so many countries went off the gold standard and probably too late to try going back to it.  It looks like the US dollar may lose its status as the world's reserve currency - then the US dollar will be worth lots less - but what will replace it and other paper money - not gold at this point.  Maybe there will be many local currencies to replace one more wide spread one.

  13. profile image0
    sealord00231posted 7 years ago

    maybe someday paper will be no more, with all this bank card coming out every day. people no longer go around with cash which is the paper money but bank cards.

  14. Hreichel profile image77
    Hreichelposted 7 years ago

    Paper money? what is that? Once fast food started accepting bank cards my final reason for cash seemed to disappear. Now when the icecream truck jingles down the road it seems I am scrambling to find change. Don't get me wrong- I love the move to a cashless society. I just have to remember to stuff a few bucks in the sock drawer for the kids allowances.

  15. komobo81f profile image52
    komobo81fposted 7 years ago

    unfortunately i would have to say yes. Every day more and more employers make it mandatory that you have direct deposit. It's sad and scary. With the push of one button your life could be cut off. Look what happen in the 30's the only reason most survived was because they had the shoe box at home with there rainy day stash.I remember my grandfather telling me stories, if his dad didn't hide money in coffee cans and shoe boxes they probably wouldn't had survived. Just imagine one morning you wake up on the way to work you stop to get gas and you have a problem with your debt card the bank say's no funds. you just got payed but we now live in a paperless world. If you have ever had an issue with a bank you can imagine how this ends.

  16. knightnimmy profile image57
    knightnimmyposted 7 years ago

    No. Electronic banking system will rule us forever. And paper money will always be available for use when there is no computer system available.

  17. jammyedwards1 profile image60
    jammyedwards1posted 7 years ago

    we have seen the implimentation of wireless transfers from card straight through to the retailer and this is being rolled out across the world. Soon I think that this will be rolled out and take over paper money or something similar will take over the paper money system

  18. profile image52
    Eagletposted 7 years ago

    When the cost to print a one dollar bill in the US exceeds one dollar we will either have to start printing our money off shore or? Maybe we just do away with the one dollar bill. I remember a time when, in the state of Washington, we had a tax token worth 1/3rd of a cent as prices increased and taxes increased the 1/3rd cent coin disappeared. Many of our coins are at risk because of the cost to produce them and price increases diminish their value. We are approaching paperless now and in time it will no doubt come about.

  19. WickedLittleLiar profile image77
    WickedLittleLiarposted 7 years ago

    Probably sooner than we all think. Check by mail is becoming almost obsolete as well, very few companies still do it and instead choose direct deposit. I wouldn't be surprised if in a year or two there would be no paper money.

  20. profile image46
    leggarnaposted 6 years ago

    I hope so because the current system sucks. How can a country be in more debt then in has in its reserves.

  21. whoisbid profile image73
    whoisbidposted 6 years ago

    People will always need paper money because the financial institutions and people who make the rules have members in them who need to do certain things without being traced (a good example is visiting a prostitute)  and it is difficult to be traced unless you have paper money. If we go to a cashless society I expect that trading in gold and other things that can be "seen" with the naked eye and remain untraced as to origin will become more popular.

  22. freesale profile image32
    freesaleposted 6 years ago

    Probably go paperless. That'll make it even easier to "print" more money.

  23. RASO profile image68
    RASOposted 6 years ago

    I don`t think so, because whole world used to pay with the paper and get something for it smile

  24. Garlonuss profile image79
    Garlonussposted 6 years ago

    Yes, in the same way that the advent of the automobile killed all the horses in the world.

    More seriously, the value of money is only what we give it. It's not that the paper money is worth anything intrinsically. It's that it's hard to come by. Even professional counterfeiters have trouble making a perfect duplicate. But if we go completely paperless, is it easier to copy or steal a physical object or digital data? The security of your money then relies on the ability to create an un-hackable computer system. And any hacker will tell you that a system is only a matter of time away from being hacked. And while a physical object can be picked up and carried out, it can only be accessed in one place. But as we go forward, anything on computers becomes more and more the realm of the do-it-at-home worker.

  25. bangla-news profile image38
    bangla-newsposted 6 years ago

    I think it will not happen with paper money.Because no transaction system will be able to manage your initial uses of paper money.

  26. sassyabby1 profile image75
    sassyabby1posted 6 years ago

    Even though there are trillions of dollars in electronic transactions, there is still an awful lot of cash and coins in circulation. Maybe within the next 20 to 30 after some type of cool e-finance breakthrough is discovered or developed, things will go totally digital.

    You also have lobbyist for the Mint suppliers who will fight a 100% digital initiative. It would pretty much put these type suppliers and contractors out of business.

  27. Mansoor Saeed profile image58
    Mansoor Saeedposted 6 years ago

    Yes paper money will be gone and even plastic will also be replaced by RFID chips/tags/cards.

    Right now many countries are using RFID technology in public transportation and road tolls.

  28. greenshellmussel profile image67
    greenshellmusselposted 6 years ago

    Well we're kind of already there. Everything is plastic now. Only the poor and from my view point the smart still uses cash. But it's still important to be prepared to have access to credit cards and things related. Cause that's how the world will eventually operate.

  29. good2read profile image56
    good2readposted 6 years ago

    I think that paper money is virtually over and a cashless system, backed by gold might be on the horizon.

  30. stanwshura profile image74
    stanwshuraposted 6 years ago

    Okay - again, my answer is likely a product of my very literal thinking process and perception of the world, but the simple answer is "yes".

    Everything changes eventually.  And when, for grand and WAY excessive example, the Earth is destroyed or humans become extinct et cetera, money will surely become obsolete.

    But - on a more realistic (well, at least, a more relevant and/or immediate) scale, I still believe that, as have gone rotary phones, most VHS/VCRs, Atari, "pong", and "washboarding" your clothes, so, too, will money undergo a similar phenomenon and/or fate.

  31. rus-leelaratne profile image60
    rus-leelaratneposted 6 years ago

    Now there is an idea, but I can not see why this would happen.  If you get rid of paper money and rely on credit or debit cars, then I guess you will loose the symbol of the currency.  Then you have to ask, why can we not have a single currency and that will not work.  Think the crisis with the Euro at the moment.  Financially stable and unstable countries, all sharing one currency.  That just does not work.  So, although a great idea, I do not think it will happen.

  32. Rehana Stormme profile image81
    Rehana Stormmeposted 6 years ago

    It is easy for me to imagine a paper-money-less society, where people pay for things using 'intangible' cash; credit cards alone. It can be relatively easy for governments and legislation to completely phase out paper money and make every citizen get transaction cards to buy or sell anything. Here's an interesting add I came across, a commercial by Visa: http://www.youtube.com/watch?v=_3xStKYjQKc Not surprisingly, many people are against this, based on the number of dislikes it had on youtube tongue

  33. zatalat profile image38
    zatalatposted 6 years ago

    Paper currency notes should be replaced by plastic currency. A paper currency note is that a tree was murdered for it.

  34. tsmog profile image80
    tsmogposted 6 years ago

    Maybe paper will disappear. But, a form of currency will always exist in  my view. Like some have said currency is a needed form of exchange in 3rd world countries - I hate that term is their a better one?

  35. nodakwoman profile image58
    nodakwomanposted 6 years ago

    NO.  Ask yourself how would our black markets survive.  As long as there are drugs, there will be paper money.

  36. Attikos profile image79
    Attikosposted 6 years ago

    All fiat currencies eventually fail. History has no contrary example. Whether that currency is represented by pieces of paper or electronic credits and debits makes no difference in that. With the massive new issues of monetized debt the US government has floated over the last two and a half years, the US dollar is now on the last, rapidly falling end segment of its value curve. In a few years a greenback will be virtually worthless, and so will its digital equivalent.

    Should the state succeed in eliminating cash transactions along the way, the black market will just adjust to a barter system to bypass it. People are not as sheeplike as our leaders assume. They react, they adapt their behavior to account for new conditions.

  37. Michael Modak profile image54
    Michael Modakposted 6 years ago

    I'm open to a monetary system that is completely transparent.  As long as everyone from the president to the dish boy is included, I'm for it.  It is the ability to hide large sums of money that is the problem.  Were not going to be getting rid of money anytime soon, cash or credit but we could vote people into office who could make it 100% visible.

  38. larry71 profile image59
    larry71posted 6 years ago

    tsmog.  "is there a better term than third world countries" 
    yes.   
    simply say "other places in the world".
    I'm not here to preach but your question asks for an answer.  The answer I have is biblical.
    I'm not  going to list the chapter and verse because I'm not giving a direct verbatim quote.  But in short for those who believe in the bible it states that one day toward the end of days there will come a time when man has to take a mak either in his forehead or his right palm, this mark is the mark of the beast. 
    There will be a time after this mark is received you can not buy any product or perform any business transaction with cash or currency of any form.  You will have to use this mark. 
    If you are a follower of Christ and refuse the mark you will not be allowed to purchase any items or perform any business transactions with businesses or shop owners who do business with the mark. 
    So the potential is there.  And predicted over 2000 years ago.  Will it happen at all?   If so will it happen in our generation?   Only time will tell.  All things are possible .   If it does come to pass it is not going to be a good thing. It will virtually have no effect on the Amish.  or any other people who live in that type of life style that provide their own live stock and produce.  Who have no electric or gas energy.  they will be self sufficient. and better off for it

  39. profile image52
    SpaceAgeposted 6 years ago

    hopefully not in my lifetime. I grew up w/ this system, & want it 2 stay til I'm gone.

  40. profile image0
    ghiblipgposted 6 years ago

    i don't think it will get replace so soon or 100% replace even in future. But for sure the electronic money will become more n more popular for people to carry around.

  41. terrektwo profile image83
    terrektwoposted 6 years ago

    Most likely, there is a growing movement to change from paper money, in Canada money is already being replaced with non paper polymer money.

 
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