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Many experts think that the presence of cash has constrained central banks from setting negative rates to stimulate the subdued economic activity.
Electronic money can only function as long as individuals know they can convert it into cash on demand.
Without a frame or yardstick, the introduction of new forms of settling transactions (such as electronic money) is not possible.
That's not really true. Electronic money functions as long as people think it has value. It's perfectly conceivable that people will find digital tokens to be valuable. Especially if it's verifiable by a third party, such as in a Bitcoin-like system.
An object cannot be used as money unless it already possesses an objective exchange value based on some other use - the object must have a pre-existing price for it to be accepted as money.
Had no pre-existing price. Now has a price and exchange rate, and is used as money.
Bitcoin already has an exchange value and some use beyond its function as money, but most people do not accept Bitcoin as money. In fact, I would say that many Bitcoin owners do not own it for monetary purposes but as an investment/speculation vehicle.
But this is still a counterexample. Many people who hold it (including myself) do use it as money. It started off with no market rate. Now it has a market rate to the point where people are willing to use it as a unit of value.
Some people use cash to light cigarettes. Does that make it not money?
Demand for a good arises from its perceived benefit. The benefit money offers is its purchasing power (its price in terms of goods and services) - for something to become a money it must have a pre-existing purchasing power, a price which could only have emerged if it already had an exchange value.
Once a thing becomes accepted as the medium of exchange it will continue to be accepted even if its non-monetary usefulness disappears.
People now possess previous information about its purchasing power - this enables them to form the demand for money.
A government decree could enforce electronic money and displace the current paper standard.
This would not work because electronic money is merely a device of storing information concerning debits and credits - it cannot acquire any independent purchasing power and thus cannot become money itself.
Eliminating cash implies the removal of money which in turn implies the destruction of the division of labor and the market economy.
The main indicators of economic growth, or 'how well the economy is doing', do not usually analyse the distribution of wealth; specifically, periods of runaway growth often come out of the pockets and paychecks of the working class.
Eliminating cash makes it easier for central banks to set negative rates which stimulate economic activity.
Low interest rates don't create economc growth.
The interest rate works as an indicator. Falsifying this indicator leads to a misallocation of real wealth which in turn weakens the process of wealth generation and the ability of businesses to grow and thus is a detriment to the economy as a whole.
Economic growth is an increase in the production of final goods and services. This can only be achieved by enhancing the infrastructure that enables lifting the production of goods and services (misallocating weal wealth weakens the wealth generation process and thus the ability to enhance it).