Until relatively recently, the concept of money hadn’t changed that much in several millennia. The first standardized coins were produced in the 7th century BC, and although the values and faces imprinted on them have varied massively, the way our financial system works has remained fairly constant. You hand over your physical cash in response for goods and services – simple.
Of course there were some major updates such as the introduction of things like banks, cheques, and credit cards. But over the past few decades, technological transformation has turned our financial system completely on its head.
Nowadays, millions of people make purchases through their phones instead of using cash or cards. There is also the strange phenomenon of cryptocurrency to wrap your head around. It’s clear that the future of money will look very different indeed.
Here are three likely money trends you should watch out for.
Most people use online banking services anyway, but it is likely in the future that we will see a huge decline in the traditional, physical bank. Many commercial banks have become predominantly digital and automated anyway, a trend that has significantly increased in light of the Covid-19 pandemic. It is likely in the not-too-distant future that all banking will be performed through apps and digital services. This will have many benefits in terms of boosting the speed and efficiency of transactions, but there is a risk that older, less tech-savvy demographics will struggle. But as our older population becomes more in tune with the digital world, it is likely that this transformation will be welcomed by the vast majority.
No Physical Money
Fewer and fewer people are carrying cash around with them these days. The vast majority of businesses accept card and mobile payments, and some even refuse to accept physical money, especially in the wake of Covid-19. It is rare to find a store that won’t accept card payments, and it’s usually tiny businesses in rural areas or mobile businesses like street food vans. But as payment technology advances and becomes more prevalent, even these companies will join the trend eventually. As a result, we may see physical money disappear altogether, and we will become a cashless society. Many countries, such as Sweden, are rapidly approaching this satte, but for less developed nations, it is still a long way off.
Cryptocurrency Enters the Mainstream
Cryptocurrency has been around for many years, but for quite some time it was the remit of financial experts and computer geeks. It was of very little interest or application to the average person. But now more and more people are getting involved with the phenomenon, and we all have that friend who won’t stop talking about it. There are now more than 1500 cryptocurrencies in use, and it is now a big part of the financial world. It’s possible that it will soon become a mainstream currency. We are seeing a rise in things like Bitcoin ATMs all over the world, and in fact, in 2021 El Salvador became the first country to take Bitcoin as its official currency.
What money trends have we missed? Let us know in the comments!