Is "Virtual Only" the Future of Canadian Currency?

    May 06 2014

    Even if you're not obsessed with the latest tech advances and breaking digital news, it doesn't take more than a few clicks of your mouse and a quick Google search to realize that the everything is going virtual these days. As far as your personal life goes, having more access to your friends, family, general information, and hobbies is always a good thing. However, when it comes to your business and cash management practices, does it matter if Canada and the rest of the world trades in its loonies and dollar bills for alternatives that show up better on a computer screen than in your customer's wallet? To answer this question, let's take a deeper look at the current currency standards and see if there's room for both paper and virtual money moving forward.

    Gauging the Technology Trend

    There's no doubt that virtual payment options are coming on strong in recent years. Bitcoins, Dogecoins, and even the Royal Canadian Mint's (RMC) own "MintChip" are all taking center stay in the world of online, secure cryptocurrencies. If you're not exactly familiar with these terms don't worry – the basic idea for all of these upstart currencies is the same as the traditional fiat options you're used to, like the bills backed by the RMC, just set in cyberspace. At the heart of this movement is the concept that the days of physical storefronts aren't necessarily numbered, but will eventually play second fiddle to online retailing and money transfers.

    Forecasting an Accurate Future

    While technophiles around the world can't get enough of the hype surrounding these mysterious online alternatives, the truth regarding the future of Canadian currency, and that of the rest of the world's currency for that matter, is a lot closer to the status quo you're used to. Sure, these cryptocurrencies definitely have appeal for those looking to securely engage in transactions on the Internet, and they definitely have a place in any balanced economy. However, there are no real signs that standard bills and coinage are going anywhere anytime soon.

    As long as the U.S. dollar remains the world's reserve currency, and it looks like it should hold this position for at least the next 25 years or so, it's pretty hard to imagine currencies tethered to this standard – namely Canadian money – disappearing into the annals of monetary history, only to be remembered as a relic of the past. Interestingly enough, the same experts that forecasted the future of physical funds aren't even sure if Bitcoins will exist by the end of this time period, showing that there's plenty of doubt regarding the longevity of these alternatives when compared to more traditional options.

    What It All Means for You

    As far as your business goes, the main thing to remember is that while it's fun to get caught up in a craze, ditching the cash management system and machines you already have in place to keep up with the latest fervor surrounding digital currency probably isn't the best idea. Instead, stay focused on protecting your cash with smart handling and sorting methods, as well as accurate recordkeeping. This way, you can make sure your business is around to see the next big currency craze, and all the others that come after it.

    Andrea Lombardi

    Andrea Lombardi

    Andrea joined the CashTech team upon its inception in 2003. Learning the business from the ground up, she now utilizes her expertise in account management, planning, and negotiation while managing the daily operations of CashTech’s sales, marketing, and logistics departments. Andrea holds a bachelor’s degree from the University of Western Ontario. She enjoys travelling and has a passion for personal fitness, including obtaining her kettlebell certification. Andrea lives in Toronto with her husband and two young sons.

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    CashTech Currency Products Inc.
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