| Many countries all over the world have adopted a new way to pay for goods or services and it is called, digital currency. So far the idea has not caught on in the US like it has in some countries like China and Belgium but I think it will become more and more popular in years to come.
When we talk about digital currency we refer to the cards that look like credit cards and can be used like credit cards but are really reloadable debit cards that can be used anywhere and for any purchase.
Years ago, one of them was called Green Dot, I believe, and Visa and Mastercard have a reloadable card on the market. There may be more out there but so far you just do not hear of them.
What you do see at many places are all the pre-paid cards for different establishments like restaurants and retail stores. You can get these cards in different amounts like, $25, $50 and $100 depending on what you want to pay. These are usually given as gifts for the holidays and other special occasions.
There have been many pilot programs performed throughout the world to see how consumers would respond to these "smart cards" and although some bugs may need to be worked out, consumer response was favorable.
Some companies actually did not prepare for how popular their cards would be and were caught off guard because they could not keep up with the demand for them.
Personally, I think this type of payment system would be a great idea here in the US. You fund the card with your own money and there is no worry about having to use credit.
Imagine though, what this would do to the credit card industry. If everyone started using this type of card there would be no need to use credit at all. Everyone would be paying for what they want and need with "real" money.
This could be the reason that this type of system has not been embraced as yet in the US. The credit card companies would be devastated and possibly ground into submission. This is all speculation but it could happen.
How many things can you think of that this type of payment system would work for? How about transportation? Taxis, buses, train fares. No more digging around in your pocket for that crumpled up cash that is way too easy to lose.
What else? Vending machines, gas stations, anywhere you can use a debit or credit card? Sure, why not.
People like using their plastic to make purchases. The best thing about these cards is that, if you can reload them, they have a finite amount that can be used so you cannot overspend and get into the same trouble as those who have overused their credit cards.
Digital currency is the wave of the future and whether or not it completely makes using cold, hard cash, or even credit, obsolete remains to be seen. |