Volume Of Cash Transactions Drop As Digital Payments See A Steady Rise, UK Fiat Use Could End By 2026
Volume Of Cash Transactions Drop As Digital Payments See A Steady Rise
A recent report called Access to Cash Review has predicted that in the next 15 years, the currently obtainable cash structure will be practically outdated. This prediction was made on the wake of the current wave of digital structures of payments taking over cash structures since last year.
It is reported that about 400 different British ATMs are closed down every month. When you add this to the hundreds of banks closing down many of their branches and also the staggering increase in the number of Bitcoin (BTC) ATMS in 2018, the prediction above might seem a tad more plausible.
Also, it’s important to note that the number of Bitcoin transactions has increased quite substantially and a few major companies like a multinational coffee chain, Starbucks, and the United States’ largest supermarket chain be revenue – Krogers, are already making moves to accept cryptocurrency payments for their services.
Adoption Of Digital Currency In The UK
Already, there are quite a good number of stores and traders who have begun to turn down cash payments because of its extreme inconvenience. One of such inconveniences is that it has become quite difficult to take all the cash received to the bank, on a daily basis. Another reason is that the procedure required to handle and record cash payments is tedious and the risk of theft from employees and even criminals, is a lot higher. Lastly, insurance companies charge larger premiums when you store liquid cash in your business premises.
All these lead to the fairly easy conclusion that digital payments are more secure, a lot faster and cost incredible less. When more people realize this, the migration from the current cash system will be unavoidable.
People are actually already starting to realize this as a tweet from a Brian M. Divine said:
“Looks like we are moving closer to a cashless society. Already, some stores in New York have stopped accepting cash. Credit/debit cards with chips and now our phones are used to make purchases.”
Interesting Cashless Societies In China And Sweden
China and Sweden are currently two of the first countries to almost completely run a cashless lifestyle. For example, more than 99% of all payments done in Sweden are done via digital means. Public restrooms are not excluded as they also operate digitally too.
For China, services like WeChat, Alipay and a few others are so common that there are quite a few metropolitan areas where cash is almost completely non-existent. China’s cashless society is so enviable that it is said that even performers on the streets ask for monetary donations digitally.
A tweet by a Niro Nirmalan said:
“Just saw a busker accepting tips via contactless! #Cashless society full steam ahead! Yes, I did #ApplePay him!”
Significant Rise in Volume of Bitcoin Transactions
Bitcoin seems to be enjoying the results of the decrease being suffered by regular cash transactions. Reports have it that on the 28th of February, Bitcoin transactions reached an amazing 367,000 day-to-day transactions. This is just a few numbers shy of its best-recorded numbers.
Matti Greenspan, the Senior Market Analyst at Etoro said:
“What I’ve been watching lately are the number of transactions on the Bitcoin blockchain and the total volumes across crypto exchanges, both of which are holding at their highest levels in more than a year…Even though we’re still officially in a bear market, there is plenty of cause for optimism.”
More Adoption For Bitcoin Payments
There is currently a high record of Bitcoin payments and this has attracted other conventional companies with them trying to get with the program. Starbucks officially revealed that it will soon commence a system of receiving Bitcoin payments for coffee.
“Our role as the flagship retailer for Bakkt is to consult and develop applications for customers to convert their digital assets into US dollars, which can then be used in our stores.”
Kroger has also reportedly abandoned the use of Visa credit cards as payment and is working on using the Lightning Network to receive Bitcoin Payments. Anthony Pompliano, founder and partner at Morgan Creek Digital, revealed this in a tweet. He also expressed his desire to have his company work with them:
“Grocery store @kroger is stopping the acceptance of @Visa in over 250 stores because of network fees.
Who knows someone on the leadership team there?
The Morgan Creek Digital team will fly to meet them and get them hooked up with the Lightning Network nationwide.”
It would seem that digital payments are inevitable and it is only a matter of time before the rest of the world gets in line.