– why do we need physical dollars and coins? Wouldn’t it be cheaper for the system as a whole to have the dollar be an entirely digital currency and wouldn’t this be better on the environment?

Question

– why do we need physical dollars and coins? Wouldn’t it be cheaper for the system as a whole to have the dollar be an entirely digital currency and wouldn’t this be better on the environment?

In: Economics

Answer 1

For 99.99% of human history going digital would not have been a possibility. It takes a lot more motivation, manpower, and resources to implement radical changes to a massive system like each country’s currency than the thought “this is probably good for the environment.” We might get there eventually.