There are a lot of rumors regarding cash usage, that it is no longer a popular and active way of payment, as it is already replaced by advanced payment methods with the help of Fintech. This statement needs to be analyzed properly as we have statistics data from every country and the forecast regarding killing Cash should be depended on the official documents. But first, the article will define the main terms, rankings and finally, the statistical analysis will be introduced.
Cash Usage Analysis
Cash still stays resilient towards financial technologies. There are some countries, where the usage of cash for payment is declining, as we have mentioned above the hubs for Fintech. However, cash still manages to stay stable, as the usage is growing in central areas.
Top cash circulations have South Korea, Poland, Saudi Arabia, Lithuania, Hungary, Singapore, and several more.
As for the Non-cash circulations, the top countries are Russia, India, China, Greece, Sweden, and several others.
BTC trading volume
The main and most active markets in terms of exchange BTC were Africa and Latin America, as we see the world’s developed economies. This is based on the exchange volume from local currencies into the digital coin. Roughly to say, 420 million U.S dollars worth rubles for buying BTC and 400 million US dollars worth of Nigerian naira. Whether this interest is for actual payment use on a day-to-day basis or as a tool for investment is not really clear.
There are some countries that are implementing BTC payments in some goods or services and the most advanced countries, in this case, are Japan, the US, Canada, Switzerland, Germany, and few more countries.
Fintech place in the money industry
Fintech, which stands for financial technology, is composed of companies that widely use financial technologies in their services daily, which makes the service more efficient and quick. When you are able to transfer even $10 to another account, this is where you come across the Fintech innovations. It has changed the ways we save, borrow or invest money with digital financial transactions which do not require the involvement of the traditional bank systems. This characteristic of fintech has given possibilities to many industries to change their service and moreover, advance it and it has improved the customer experience. For example, paying for your car with Bitcoins, shopping on eCommerce websites, simply completing international transactions within a couple of minutes, gambling with Bitcoin online so it doesn’t affect your credit card history, staying anonymous behind any transaction - this seemed like a dream ten years ago but now we have this reality.
Fintech has influenced the financial services started from payment methods, such as PayPal for example to cryptocurrency. It can be used for even buying coffee in the morning.
The launch of the 2020 Global Fintech Index provides proof of the growing importance of non-traditional finance and financial centers. The launch of this global index indicates that something very important is happening in the world with the growing meaning of financial technologies.
The index primarily shows us that the usage of Fintech is different from country to country and the situation is individual for each and every one of them. There are several global Fintech hubs all over the world, with their own scores:
- San Francisco Bay - 80.136
- London - 54.888
- New York - 36.889
- Singapore City - 23.621
- Sao Paulo -18.805
- Los Angeles -17.867
- Bangalore - 16.093
- Boston - 15.795
- Berlin - 15.616
- Mumbai -15.063
As we have seen cash usage and money usage with Fintech is the main payment method today. The volume of money is extremely high and the main advantage of using it is the shared idea about its purpose and what it means. You know that if you have 10 euros, you will be able to buy sweets in the supermarket, but when you had one BTC in September, you could buy a car, but as of February, you might even buy an apartment.
To make a clear comparison of money circulation and BTC circulation, let’s review the trading volume on online exchanges in various countries worldwide in 2020.
Conclusion
Finally, to sum up, it is obvious that we are living in the period when the main changes are happening in the financial market. A lot of people think that BTC and cryptocurrencies are going to be the future money, however, it is still a matter of time. For today, there are a lot more obstacles for the digital coins to be considered as future money, than the cons. Some countries have strict rules against them and some of them are implementing them in several services, not in the most. The main change to happen to BTC to be considered as money and to replace it, is to have an internationally shared opinion about its purpose and the main aim of its usage. 10 years ago we would not even imagine that today we would be talking about the money future, but here we are and nothing is surprising when we talk about the market, which is changing from day to day.
