Why won’t cryptocurrency replace cash?

The digital currency will never replace cash in the financial turnover.
As the deputy head of the Central Bank of Canada Carolyn Wilkins said, cash will be preserved even if
the cryptocurrency will dominate the financial market.
Wilkins emphasized on preservation of money as medium of exchange in case of society’s using cash in
turnover. She contrasts it against cryptocurrencies as they are virtual money meaning it’s impossible
either to see or feel them. For instance, one can use Bitcoin one of two: as an investment or as cashless
Even if Bitcoin can take the first place in the world in terms of paying for goods and services, still cash
will be kept in the community and used for shopping. At the same time the representative of the CBA of
Canada noted that electricity is needed for the existence and functioning of the crypto currency market.
Uninterrupted power supply for the market is essential, because any emergency case can lead to a
paralysis of the entire banking sector which does not use cash in circulation. Currently, many states are
working to create their own cryptocurrencies. Some countries, such as Russia and China, are already on
the way toward introducing their digital currencies in a short time.
Wilkins noted that there is nothing wrong with that. However, it is necessary to carry out research work
in order to study, wherever possible, all the risks for the financial sector that may arise by digital money
Let us remind that, as previously reported, the Central Bank of Brazil warned its traders against investing
in the purchase of Bitcoins, since the sphere of cryptocurrency is actually a financial pyramid.

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