Is it possible that during the transition to a CBDC, cash decouples from the US dollar? Like would cash, physical paper cash, become more valuable due to its privacy, fungiblity, divisibility, and non-digital aspects? It would also become scarce by default if USD was fully digital.
Just thinking out loud.
Yea this makes sense. It’s definitely a possibility. It would all depend if people and businesses would continue to accept it which I think they would because what else would they accept? (Assuming hyperbitcoinisation hasn’t or won’t happen)
I still think Bitcoin is a better option don’t get me wrong. Hard to safely store your wealth in cash. But could see cash basically becoming physical bitcoin in that you either transact with bitcoin or cash. Or transact with cash but store wealth in bitcoin. Bitcoin replaces banking but cash still available for those who would want to use. 🤷♂️ man, interesting to think about.
Yea I totally agree and think it’s a very possible outcome.
