Digital Wallet - 2020 and the World

The Liberal Party, Australia recently introduced a bill clarifying that purchases of over 10,000 Australian dollars (about 6,750 dollars) in cash would not be legal.

According to the government, this measure will deter tax evasion and encourage the transition to a cashless society. Depending on the, transactions equal to or greater than the amount indicated must be made using an electronic payment system or by check. These payments must also be declared by an entity within the meaning of the legislation on the fight against money laundering and the fight against terrorism. In this case, "payments that the entity must declare in accordance with the law against money laundering and terrorism" are considered. As is well known, most major cryptocurrency exchanges comply with government requirements regarding Know Your Customer and AML.

As noted by the Australian Department of Finance, the bill has been released for public consultation and the government plans to introduce a cash payment limit starting this new year. Of course, this step seemed like good news for the cryptocurrency market, as a cashless company will encourage businesses and individuals to turn to digital assets. Here are three other countries that are about to abandon cash payments and potentially accept crypto as a payment method.

Sweden is one of the most striking examples of a cashless economy. The percentage of money used in this country has decreased considerably (including only transactions) and stores accept cash. In addition, the researchers suggest that the country should become a cashless society. The threat of burglary from banks, transit operators and outlets has virtually disappeared.

This was made possible through the efforts of the authorities, the unprecedented public confidence in banking structures and the promotion of the Swedish national mobile payment system, which represents more than half of the population. Overall, Sweden has become the first European country to have an independent payment service provider (PSP) - that is, its own procurement system.

It seems that Sweden wants to rid its infrastructure and tourist facilities of cash. However, the decrease in the use of cash was caused by citizens' decision to use less money. The money is used for public transport because it is less and less secure for drivers. In addition, small Swedish businesses must completely make cashless payments. Stores are actively introducing PayPass, point-of-sale terminals and technologies that enable local startups.

For example, iZettle is a card reader for securing bank cards via smartphones. It was evident that the desire for a cashless society had led to the November 2018 intentions of the Swedish central bank, the Riksbank, when the first Swedish cryptocurrency called test was launched. The Bank of Sweden has not yet decided whether the test launch of e-krona will be short or long term. However, during the test, the bank specialists will decide on the best use of electronic korna in order to give the masses access to the means of payment guaranteed by the state. Sveriges Riksbank chief economist and Uppsala University associate professor Gabriel S?derberg is very careful about using current cryptocurrencies as a payment tool, but believes that the Swedish government may decide to issue its own digital currency in the future.

In my definition of cryptocurrencies, one of their characteristics is that they are not issued by a government, nor by a union of government (like the EU). In this regard, I do not think that governments, today or in the future, will consider promoting cryptocurrencies as a major payment instrument. However, if we are talking about digital money in a broader sense, I think it is highly possible that governments will create in the future a digital form of money that can be used for payments. I am convinced that blockchain technology can be useful in various applications, I think that blockchain technology is very promising and that there will be different forms of applications in society. However, I think that the arguments in favor of this project will not be universal, that is, it will work better in some areas than in others.

Right now, many of us are studying how blockchain could help future payments. I am fully open to the possibility that this could potentially be incorporated into certain forms in future payment systems, but we do not yet know to what extent. Germany has long been an exception to the European Union, the country with no restrictions on the use of cash payments, however, in early February 2016, the Ministry of Finance limited cash payment transactions to 5,000 euros ($ 5,600) - both domestically and throughout the euro area. It should be noted that the Ministry of Finance reviewed and decided to support the initiative in less than a day. It is not yet known whether the German government will accept this restriction, especially considering the reaction of German society to this initiative.

However, it is clear that a serious review of the liquidity position has already started in Germany and throughout Europe. The decree cites the European Court decision of 2015, which defined Bitcoin as a currency in terms of taxation and removed value added tax when purchasing goods and services using cryptocurrencies. The decision of the Court of Justice of the European Communities authorizes differences of opinion between EU states regarding the nature and regulation of cryptocurrencies. Each country can have its own opinion on what Bitcoin is (for example, a currency or a property).

Canada is demonstrating a sophisticated level of development of its payment system due to the high level of financial accessibility and a government program aimed at optimizing the national payment system. In Canada, there is already only one national debit card system represented by Interac and three major credit card networks operated by Visa, MasterCard and American Express.

It is expected that only 10% of the money spent in Canada will be supplemented by cash transactions. At the same time, Canadian authorities are in no hurry to make cashless payments too quickly. In October 2018, the Bank of Canada described a number of issues related to the country's total denial of money under the heading "Is the problem a cashless society?". For example, some people, such as the elderly, may still prefer to use physical money for electronic payments. But the government sees more benefits.

The Bank of Canada says that, while a cashless company will not cause significant systemic problems, there are serious concerns about maintaining operational reliability. The research suggests three possible policy decisions: Maintain the cash availability commitment and consider proactive measures to mitigate the potential reduction in cash over time. Regulate payment networks in order to maintain operational reliability and mitigate the negative effects on competition. To be issued by the country's central bank, which would not be a cryptocurrency, but a digital version of the Canadian dollar to compete with private payment networks. In July 2018, the Bank of Canada conducted a study called "Digital Currency and Central Bank Monetary Policy", which showed that cryptocurrency issued by the central bank could potentially benefit the economic well-being of the country.

The research paper says that the introduction of a central bank digital currency (CBDC) could lead to an increase of 0.64% in consumption for Canada compared to their respective cash-only savings. Even earlier, in May 2018, the Bank of Canada, TMX Group and Payments Canada confirmed at their hearing that any asset and any currency can be converted instantly. According to the results of the flagship distributed ledger technology experience launched in June 2017, distributed ledgers have been shown to be an effective solution for automating real-time settlement of securities. The Bank of Canada was not the first in the country to think about the use of blockchain in traditional payments.

In September 2017, Royal Bank of Canada used blockchain technology to facilitate the transfer of payments between its banks in the United States and Canada. For Example, we at Green Apex has developed cosfinex for digital investment and wallet with crypto integration for Canada based enterprise.

A society without physical money is no longer a utopian dream. Today, almost everyone understands the direction in which the payment systems of the future will evolve, and it is by no means a question of cash or material goods: cash will become electronic, but what role will blockchain play and cryptocurrencies? And if it can prove his speed and complete safety, we will have to wait to find out.