Experts Predict Virtual Money to Replace Traditional Currency

By: Talha Bhatti  |   August 15th, 2013   |   Business, News

Karkal, CFO at Simple, MacMillan, reporter at Bloomberg and Thomas Stefan have predicted that in the future virtual money will be prevalent in some form and banking and purchasing experience will be totally different from what it is now. “MacMillan asked the two-person panel what a modern currency should be. Thomas says it must be something that can’t be duplicated (fake paper currency remains a massive problem worldwide) and Karkal says it must be easily accessible in real-time.” Thomas and Karkal believe that the modern form will largely change the way we carry out our transactions and use our money and the modern form may be something that will be later developed or could be Biticoin.

“Banks rely on customer confusion for a large portion of their revenue. Most of their fees occur when a client screws up, so they have an incentive to help their clients screw up,” explains Karkal.” Thomas believes that the working at banks is flawed and they rely heavily on their customers getting confused and so in the future the practice and experience of banking may be transformed drastically as people move towards digital money.

MacMillan posed the question about how long it would take for virtual money to reach the average consumer. Karkal responded that banks will not always be there and will change with time. Thomas replied in the following words: “New technologies that provide a genuine alternative will be adopted. Right now using Bitcoin isn’t convenient. But apps are changing that. Eventually the experience will be streamlined and these new technologies will find adoption.”

So, virtual currency will take time to get established. One of the reasons is that at the moment it is not so practical or feasible. Also, because people are more familiar with the currency that they are using now which is also more convenient and is produced by banks but on the other hand tech companies are developing new and different forms of currency which will catch on as people start to move away from traditional banking.

At the end, Thomas and Karkal gave these predictions for the future.

“I predict that in 10 years people will be able to open a bank account in a foreign country just because you’re staying there for a week,” Thomas said. “I predict you will be able to do your entire banking experience on a smartphone and go months or even years without entering a physical bank or using cash,” said Karkal.

Source: TechVibes