If Paper Money Is Banned From Large Transactions, Can This Be A Bullish Sign For Cryptos?
Many societies are currently moving towards the so-called cashless society. Will Bitcoin be a part of this trend? In order to discover this, we have to look at this trend closely. Australia, for instance, is about to ban cash for large transactions.
According to a new law which was created by the company’s Liberal Party, it will soon be illegal to make any transaction with more than $10,000 AUD using paper cash. Only cheques and electronic transfers will be accepted because they will generate proof that the trade actually happened and it was legal.
The main goal of the new legislation is actually to affect the illicit tobacco industry and the local black market, as well as terrorist financing, but the truth is that this will have a very interesting effect on the overall society.
At the moment, 37% of all transactions made in Australia are currently made with cash, so it will take time to move to a cashless society. Many small businesses which have all their money in cash have complained about the measure, affirming that it would hurt their deals, however, the law is expected to be passed anyway.
A Great Chance For Cryptos
This is obviously a great chance for cryptocurrencies to be adopted. If many businesses do not have a choice but to stop using cash, they could easily use Bitcoin instead of doing their deals via banks. The ban will be done in around two months and the local Bitcoin community is already very eager for the change because it will certainly have an interesting effect in the local market.
While $10,000 AUD is still a big sum of money, it will not be forever since inflation is always going up these days. The impact of the inflationary pressure could make Bitcoin more prominent then. However, if the value goes higher as inflation rises, the impact will certainly not be as big as it can be.
Crypto users all over the internet have started to dream (perhaps too much) in the wake of this discussion. A Reddit thread, for instance, was a prolific space for the discussion. The user u/slvbtc has affirmed that it will be illegal to use cash for anything with time because of the law.
This would strengthen Bitcoin because the “war on cash” would continue. Another user affirmed that this was all a plot to give all the money to the banks and that the “banking elite” would control everything unless people started to use Bitcoin and really hold their money.
The main problem of this logic is that they believe that there is a real war on cash going on and that the $10,000 AUD value will never be upgraded when there is literally no proof that this will ever happen at all. The value will probably be incremented as inflation happens and we have no reasons to believe that this is all a conspiracy led by rich bankers.
IMF Promotes Central Bank-Based Digital Currencies
Another important aspect of the change we are experiencing is that the International Monetary Fund (IMF) is currently promoting the idea of negative interest rates, which could be created if banks decided to create their own centralized digital tokens.
Measures, like limiting cash and creating centrally-backed tokens, will certainly change the world. This gives the governments more power over how people use their money, that much is certain. Limits like how much cash you can spend may seem strange today, but they will not necessarily be in the future.
If people are not very happy with this, there is a chance that this might affect cryptocurrencies in a positive way. While people are seriously overreacting by believing that governments will use these measures to erase cash forever, any movement in this direction will certainly be good for Bitcoin.
The world is currently digital and it is getting more digital all the time. Since digital fiat would be inflationary and Bitcoin would remain deflationary, the choice is obvious and BTC could be heavily impacted from what will happen.
In any case, this is all speculation, so we will have to wait and see before we can sure of how this situation will affect the crypto market.