How Technology Affects the Future of Money

When speaking about money and technology, most people speak about payment gateways, online lending systems and transactions, while they fail to realize something even more important – the shift in mindset. The fact that most money nowadays exists only in the digital world and the idea that we can access and spend our funds on our phone is completely outlandish.

In short, it doesn’t only change the way in which we use money, but also the way in which we perceive it. It changes the way in which we save and prioritize. So, here are three of the greatest changes that technology is about to introduce when it comes to the notion of money.

1. We’re heading towards a cashless society

The first thing worth mentioning is the fact that, at the moment, our world is getting more cashless by the hour. According to an article from 2017, the total amount of money in the world is somewhere around $80 trillion, whereas the amount of money that circulates the world in coins and notes doesn’t exceed $5 trillion. In other words, about 6.25 percent of all money in the world exists as cash while all the rest exists in a digital form. This is a trend that’s only expected to keep growing, seeing as how digital money has existed for just decades, while hard currency has existed for millennia.

The main reason why this is happening is the fact that it’s more convenient to carry large quantities of money and spend it in this way. Stealing a wallet is easier than figuring out one’s PIN and going paperless means that you don’t have to worry about things like change. Overall, it’s more than clear which side the scale is tipping at the moment.

2. Decentralized currency

Another thing that’s obvious is the fact that the system simply doesn’t work anymore. Think about it, the global economy has crashed several times in the past century and every time this has happened, the banking system was at the epicenter of the controversy. The latest trend of cryptocurrencies has just facilitated this change and shown that digital currencies and cryptocurrencies can exist without government interference. Renowned cryptocurrency themed portal The Blockchain Review went to great lengths to elaborate the way in which public blockchain governance works, which only further supports this claim.

The next thing that can be expected from these decentralized currencies is for them to become a bigger part of our everyday lives. In the past, Bitcoin was a currency that one used to pay for illegal activities on the dark web, yet nowadays, it isn’t hard to imagine a scenario where one buys a hotdog with digital money. In fact, we might just be on the verge of a world where these decentralized currencies completely replace traditional money.

3. Spending habits are changing

The next trend may be interpreted in one of several ways, yet present-day technology has affected the way in which we perceive money. By reaching a limit on our credit cards, we’re spending money we don’t actually have in order to buy things we don’t really need. In other words, the entire spending experience has been completely gamified now that you no longer see money as a pile of bills in your wallet, but as some numbers on your screen.

This might seem like a problem, but with the boost of control that smartphones introduce, it is now possible to reverse this trend through finance apps. Sure, people have relied on such tech-savvy trends for ages, but nowadays, this process so simplified with the ability to take photos of bills instead of entering data manually. In this way, one might also gamify their money-saving efforts and reign in their consumerism.


A lot of people underestimate the adaptability of humankind to change, which makes them believe that certain trends are unalterable just because they haven’t evolved in centuries. With the latest changes introduced to the world of currencies and changes that the notion of money has undergone, they are about to be proven wrong, once again.


Author Bio

Dan Radak is a marketing professional with eleven years of experience. He is currently working with a number of companies in the field of digital marketing, closely collaborating with a couple of e-commerce companies. He is also a coauthor on several technology websites and regular contributor to Technivorz.