Economists Say Cash Is Losing Its Currency

NEW YORK (CBS NEWS) – It’s what the wallet was invented for, to carry cash. After all, there was a time when we needed cash everywhere we went, from filling stations to pay phones. Even the tooth fairy dealt only in cash. But money isn’t just physical anymore. It’s not only the pennies in your piggy bank, or that raggedy dollar bill. Money is also digital — it’s zeros and ones stored in a computer, prompting some economists to predict the old-fashioned greenback may soon be a goner.

“There will be a time — I don’t know when, I can’t give you a date — when physical money is just going to cease to exist,” said economist Robert Reich.

Economists like Reich say the demise of cash has been happening ever since our financial fortunes could first be told by a piece of plastic with a magnetic strip. That was half a century ago — and now? “95 percent of the transactions in America, or more, have nothing to do with physical pieces of paper or coins,” Reich said.

Think about it. Parking meters, taxis, tolls, even Girl Scout cookies don’t require cash anymore, all proof (some argue) that cash’s days are numbered.

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  • Dennis Teel

    this has been said for years and it’s not you realise just how many times over the last 12 years at least,that we’ve been reading that cash transactions are coming to a close relatively soon? while we have more people using credit cards today than 12 years ago,there are certainly millions of people in the usa using cash on a daily basis.this particular issue is ony used as an excuse to fill newspaper space that would otherwise display an article about the history of the pot roast

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