Not that long ago, the phrase ‘cash is king’ would have been heard in many sectors of the New Jersey economy, but that’s not the case – at least not the same extent that it once was. Yes, old-fashioned ways of handling transactions, such as issuing banker’s cheques, for example, are now all but a thing of the past since digital payments have taken over in so many areas. Does this mean that people will start to use cryptocurrencies instead of dollars and cents though? The simple answer is that there’s probably a future for both, for the time being, at least.
The Rise of Crypto Payments
For some, cryptocurrencies are a convenient means of storing wealth and not much else. Digital coins are mined, traded, and kept in digital wallets never to be used. However, this is increasingly changing as many early adopters of crypto are increasingly using their digital wallets for everyday transactions. A popular Web3 Card with crypto top up functionality, for example, can be used nowadays much like a top-up or pre-payment credit card. Issued by companies like Mountain Wolf, such cards are now used for all sorts of payments, not to buy more crypto or other digital assets, but regular things like groceries, clothing, and automobiles, too. The trend may have started with so-called crypto-bros, the devotees of all things related to digital currencies but these cards are now going mainstream with numerous brick-and-mortar stores accepting them these days, not just online sellers. All you need is a digital or crypto wallet to get started, too, so they’re not particularly technically demanding to use, either.
Regulatory Factors
Of course, it is not all plain sailing when it comes to cryptocurrencies and some people understandably wonder whether regulations will help cash to make a comeback against blockchain-enabled money. In the USA, this seems unlikely given the popularity of crypto in political circles but it is something that Europe has looked at before. To some extent, central banks owe their power to the fiat currencies they issue, so coexisting alongside cryptocurrencies, while it works for now, may be an evolving picture that’s worth keeping an eye on before you empty your bank account of all its dollars to trade them in for a cryptocurrency.
Wider Public Opinion
Finally, there is some scepticism about crypto among certain parts of US society. Although some may revere it, others remain cautious about its volatility. There can be little doubt that though cryptocurrencies are becoming mainstream, fears over their valuation stability have held them back. What might change this, of course, is any sign of instability in cash. When the buying power of dollars is lessened through tariffs, weak foreign currency exchanges, and inflation, more people are likely to be willing to hedge with crypto. Only time will tell if these sorts of economic conditions help crypto to replace cash or whether the two systems will continue to co-exist with one another.
Conclusion
In summary, no one can tell whether crypto will replace cash soon or in the future. Speculation is all there is which is why many people will continue to operate with both.
The New Jersey Digest is a new jersey magazine that has chronicled daily life in the Garden State for over 10 years.