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Assets & Types of Money

CASH
BANK DEPOSITS
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crypto

TYPE

CASH

BANK DEPOSITS

E-MONEY

STABLECOINS

CRYPTO ASSETS

STABILITY

Yes

Yes

Yes

Maybe

No

ISSUER

Central Bank

Private Bank

E-money Institute

Private Company

No Central Issuer

BACKED BY

Central Bank/State

Central Bank Reserves/Regulation

Bank Deposits

Bank Deposits/EU Regulations

No Security

AVAILABLE TO

Citizens & Companies

Citizens & Companies

Citizens & Companies

Citizens & Companies

Citizens & Companies

TECHNOLOGY

Centralized Database

Centralized Database

Decentralized

Decentralized

Central Bank Digital Currency

Retail & Wholesale CDBC

RETAIL CDBC
BANK DEPOSITS

TYPE

RETAIL CDBC

WHOLESALE CDBC

STABILITY

Maybe

Maybe

ISSUER

Central Bank

Central Bank

BACKED BY

Central Bank/State

Central Bank/State

AVAILABLE TO

Citizens & Companies

Financial Actors

TECHNOLOGY

Centralized/Decentralized Database

Decentralized Database

Cashless Commerce

Why cash won't be eradicated just yet

Privacy: It ensures the user’s freedom and autonomy. Banknotes and coins are the only form of money that people can keep without involving a third party. 

Legal currency: Just because digital payments are trendy, doesn’t mean cash shouldn’t be used. Although many businesses started to refuse the use of cash during the pandemic and that trend has continued, cash and coins are still legal tender. 

Inclusivity: Financial inclusion in terms of digital payments is a big topic for fintechs and banks aiming to draw in more customers and users. But for many emerging market populations, and many demographics within developed economies, cash is still a vital transactional currency. 

Tracks spending: Many studies show that although electronic transactions can provide seamless records of spending, the psychological processes of breaking a banknote to make a purchase means the spender will be mentally tracking their purchases more keenly.

It’s secure from online fraud: While carrying around large amounts of cash isn’t always practical, it does mean the user is safe from a large number of frauds and crimes that only occur in the digital transactional space. Of course, this is offset through accidental loss and physical theft, which can occur, but which is less likely considering the amount of online fraud currently occurring. 

It provides flexibility: Using cash for small person-to-person purchases is often much easier and faster than using an app. Cash is also an essential tool in teaching children about the values and use of currency in a clear and tangible way.