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FX.co ★ Era of cash money to sink into oblivion

Era of cash money to sink into oblivion

Era of cash money to sink into oblivion

Market experts have long forecast the dawn of the cashless era. They are sure that soon cash money will be completely abandoned as a means of payment.

Cash money has been losing its luster with people for about 10 years amid technological advancement. Yet, this process was unfolding gradually until one notorious event took place. When the coronavirus outbreak occurred, the number of non-cash payments spiked up. Notably, many countries around the world are trying to ditch the usage of coins and banknotes. Residents of developed countries have long used alternative payment methods, trying to avoid physical contact with money as much as possible. Experts of one of the world's largest payment systems PayPal note that in the light of recent events, many people have switched to cashless means of payment and they are unlikely to use cash money as much as they used to. Experts are also confident that paper money will never regain its dominance. "The pace of e-commerce has accelerated by several years in a single quarter," PayPal CFO John Rainey said. The company reported that in the second quarter, its revenue hit a record of $5.26 billion and the stock price rose to $184.6 per share. The active introduction of contactless payment methods has become a forced measure in many countries during the pandemic. Even those people who used only cash money while making purchases got the habit of paying for goods by a credit card.

A number of governments, especially in China, are trying to promote contactless payments. When the coronavirus was rampant in China, the financial authorities destroyed paper money coming from the most infected provinces. Instead, they advised people to switch to e-payments. In Russia, the Central Bank maintains banknotes for at least two weeks from the moment of receipt, so that they return to circulation already clean.


*The market analysis posted here is meant to increase your awareness, but not to give instructions to make a trade
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