Digital Instead Cash Money Use
One of the effects on the domestic economy, a product of the confinement due to the pandemic, has been the significant decrease in the use of cash. Online shopping has increased considerably.
The decision of parents to protect their children from a possible contagion and the need to buy food, found its solution in online shopping and delivery services where merchants deliver the products at the doors of the houses. Not only restaurants and supermarkets (who traditionally deliver) but also establishments that did not usually provide this service, had to adopt it to try to maintain the level of their sales.
For crypto enthusiasts, the idea of a cashless society has always been a utopia, but due to current circumstances, this possibility seems closer than ever. It was never the wish that crypto adoption happened for these dire reasons, but one way or another, it is happening.
Although so far transactions remain in digital fiat money, there has also been a rebound in crypto-backed operations.
According to a study by Deutsche Bank titled "Imagine 2030" argues that by 2030, cryptocurrencies will replace cash.
This work, by analyst Jim Reid, raises 24 alternative ideas for the next few years. According to the expert, new financial exchange assets, led by cryptocurrencies, would dominate the market in the next decade, which means the disappearance of fiat money.
In Venezuela, the use of cash has also decreased, but for other reasons. The shortage of local currency cash is the main reason.
On the other hand, the brutal devaluation that affects the Venezuelan economy has caused the implementation of several currency reconversions by the government administration. The highest denomination banknote has a real value of 0.03 usd, which has led to the adoption of the US dollar as the most widely circulated currency and its use has been extended even for simple food and retail purchases.
But it is still the online operations, interbank transfers and payment with debit and credit cards that dominate and commercial exchange.
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