It is believed by some that cash money will not be in use going forward in time. Other people believe that physical banknotes will still be used from time to time. In my opinion, I consider that the one hundred percent cashless world is a mirage, and it is highly unlikely that this mirage will turn into reality in the nearest future.
On the one hand, cashless transactions are easier to track for both tax authorities and criminal police. Therefore, governments ought to reward the digital money usage because, for instance, it permits headless financial crime investigations. Similarly, the world without heavy wallets is beneficial for consumers. In such a world there is no possibility to forget money or to be robbed. Furthermore, the digital money supply is the key to a more sophisticated inflation management. Recent research has shown that the controlled money supply can halve the inflation rate in the United Kingdom.
On the other hand, there are some locations, where the internet penetration is still not deep enough, or the internet connectivity is not stable enough to completely avoid transactions with physical money. Cash is required there as a back up payment method. Sometimes governments prefer to leave a room for banknotes in order to decrease the poverty rate. For example, in the hospitality industry the use of cash for tips is rewarded. In addition, the cashless world is the first step to the deterioration of bribery, that is considered to be “the engine oil” for certain economies. Corrupt politicians will never acknowledge the application of digital transactions in their countries.
In conclusion, while people may have opposing points of view, I think that disruption of physical money exchange is not going to happen. Digital cash is tough to support in less urban areas, it is considered as a threat to many fans of conspiracy theories, and its use will not be fully encouraged by dishonest authorities.