diff --git a/src/Makefile.am b/src/Makefile.am
--- a/src/Makefile.am
+++ b/src/Makefile.am
@@ -112,6 +112,7 @@
   core_io.h \
   core_memusage.h \
   cuckoocache.h \
+  dstencode.h \
   globals.h \
   httprpc.h \
   httpserver.h \
@@ -325,8 +326,11 @@
   cashaddr.cpp \
   cashaddrenc.cpp \
   chainparams.cpp \
+  config.cpp \
   coins.cpp \
   compressor.cpp \
+  dstencode.cpp \
+  globals.cpp \
   core_read.cpp \
   core_write.cpp \
   key.cpp \
diff --git a/src/Makefile.test.include b/src/Makefile.test.include
--- a/src/Makefile.test.include
+++ b/src/Makefile.test.include
@@ -88,6 +88,7 @@
   test/crypto_tests.cpp \
   test/cuckoocache_tests.cpp \
   test/DoS_tests.cpp \
+  test/dstencode_tests.cpp \
   test/excessiveblock_tests.cpp \
   test/getarg_tests.cpp \
   test/hash_tests.cpp \
diff --git a/src/base58.h b/src/base58.h
--- a/src/base58.h
+++ b/src/base58.h
@@ -155,10 +155,7 @@
                            CChainParams::EXT_PUBLIC_KEY>
     CBitcoinExtPubKey;
 
-std::string EncodeDestination(const CTxDestination &dest);
-CTxDestination DecodeDestination(const std::string &str);
-bool IsValidDestinationString(const std::string &str);
-bool IsValidDestinationString(const std::string &str,
-                              const CChainParams &params);
+std::string EncodeLegacyAddr(const CTxDestination &dest, const CChainParams &);
+CTxDestination DecodeLegacyAddr(const std::string &str, const CChainParams &);
 
 #endif // BITCOIN_BASE58_H
diff --git a/src/base58.cpp b/src/base58.cpp
--- a/src/base58.cpp
+++ b/src/base58.cpp
@@ -257,6 +257,7 @@
     }
     return CNoDestination();
 }
+} // namespace
 
 } // namespace
 
@@ -291,19 +292,12 @@
     return SetString(strSecret.c_str());
 }
 
-std::string EncodeDestination(const CTxDestination &dest) {
-    return boost::apply_visitor(DestinationEncoder(Params()), dest);
-}
-
-CTxDestination DecodeDestination(const std::string &str) {
-    return DecodeDestination(str, Params());
-}
-
-bool IsValidDestinationString(const std::string &str,
-                              const CChainParams &params) {
-    return IsValidDestination(DecodeDestination(str, params));
+std::string EncodeLegacyAddr(const CTxDestination &dest,
+                             const CChainParams &params) {
+    return boost::apply_visitor(DestinationEncoder(params), dest);
 }
 
-bool IsValidDestinationString(const std::string &str) {
-    return IsValidDestination(DecodeDestination(str, Params()));
+CTxDestination DecodeLegacyAddr(const std::string &str,
+                                const CChainParams &params) {
+    return DecodeDestination(str, params);
 }
diff --git a/src/bitcoin-tx.cpp b/src/bitcoin-tx.cpp
--- a/src/bitcoin-tx.cpp
+++ b/src/bitcoin-tx.cpp
@@ -7,10 +7,12 @@
 #endif
 
 #include "base58.h"
+#include "chainparams.h"
 #include "clientversion.h"
 #include "coins.h"
 #include "consensus/consensus.h"
 #include "core_io.h"
+#include "dstencode.h"
 #include "keystore.h"
 #include "policy/policy.h"
 #include "primitives/transaction.h"
diff --git a/src/config.h b/src/config.h
--- a/src/config.h
+++ b/src/config.h
@@ -19,15 +19,23 @@
     SetBlockPriorityPercentage(int64_t blockPriorityPercentage) = 0;
     virtual uint8_t GetBlockPriorityPercentage() const = 0;
     virtual const CChainParams &GetChainParams() const = 0;
+    virtual void SetCashAddrEncoding(bool) = 0;
+    virtual bool UseCashAddrEncoding() const = 0;
 };
 
 class GlobalConfig final : public Config {
 public:
+    GlobalConfig();
     bool SetMaxBlockSize(uint64_t maxBlockSize);
     uint64_t GetMaxBlockSize() const;
     bool SetBlockPriorityPercentage(int64_t blockPriorityPercentage);
     uint8_t GetBlockPriorityPercentage() const;
     const CChainParams &GetChainParams() const;
+    void SetCashAddrEncoding(bool) override;
+    bool UseCashAddrEncoding() const override;
+
+private:
+    bool useCashAddr;
 };
 
 // Temporary woraround.
diff --git a/src/config.cpp b/src/config.cpp
--- a/src/config.cpp
+++ b/src/config.cpp
@@ -7,6 +7,8 @@
 #include "consensus/consensus.h"
 #include "globals.h"
 
+GlobalConfig::GlobalConfig() : useCashAddr(false) {}
+
 bool GlobalConfig::SetMaxBlockSize(uint64_t maxBlockSize) {
     // Do not allow maxBlockSize to be set below historic 1MB limit
     // It cannot be equal either because of the "must be big" UAHF rule.
@@ -44,3 +46,10 @@
 const Config &GetConfig() {
     return gConfig;
 }
+
+void GlobalConfig::SetCashAddrEncoding(bool c) {
+    useCashAddr = c;
+}
+bool GlobalConfig::UseCashAddrEncoding() const {
+    return useCashAddr;
+}
diff --git a/src/core_write.cpp b/src/core_write.cpp
--- a/src/core_write.cpp
+++ b/src/core_write.cpp
@@ -4,7 +4,7 @@
 
 #include "core_io.h"
 
-#include "base58.h"
+#include "dstencode.h"
 #include "primitives/transaction.h"
 #include "script/script.h"
 #include "script/standard.h"
diff --git a/src/dstencode.h b/src/dstencode.h
new file mode 100644
--- /dev/null
+++ b/src/dstencode.h
@@ -0,0 +1,26 @@
+#ifndef BITCOIN_DSTENCODE_H
+#define BITCOIN_DSTENCODE_H
+
+// key.h and pubkey.h are not used here, but gcc doesn't want to instantiate
+// CTxDestination if types are unknown
+#include "key.h"
+#include "pubkey.h"
+#include "script/standard.h"
+#include <string>
+
+class Config;
+class CChainParams;
+
+std::string EncodeDestination(const CTxDestination &, const CChainParams &,
+                              const Config &);
+CTxDestination DecodeDestination(const std::string &addr, const CChainParams &);
+bool IsValidDestinationString(const std::string &addr,
+                              const CChainParams &params);
+
+// Temporary workaround. Don't rely on global state, pass all parameters in new
+// code.
+std::string EncodeDestination(const CTxDestination &);
+CTxDestination DecodeDestination(const std::string &addr);
+bool IsValidDestinationString(const std::string &addr);
+
+#endif // BITCOIN_DSTENCODE_H
diff --git a/src/dstencode.cpp b/src/dstencode.cpp
new file mode 100644
--- /dev/null
+++ b/src/dstencode.cpp
@@ -0,0 +1,41 @@
+// Copyright (c) 2017 The Bitcoin developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+#include "dstencode.h"
+#include "base58.h"
+#include "cashaddrenc.h"
+#include "chainparams.h"
+#include "config.h"
+#include "script/standard.h"
+
+std::string EncodeDestination(const CTxDestination &dst,
+                              const CChainParams &params, const Config &cfg) {
+    return cfg.UseCashAddrEncoding() ? EncodeCashAddr(dst, params)
+                                     : EncodeLegacyAddr(dst, params);
+}
+
+CTxDestination DecodeDestination(const std::string &addr,
+                                 const CChainParams &params) {
+    CTxDestination dst = DecodeCashAddr(addr, params);
+    if (IsValidDestination(dst)) {
+        return dst;
+    }
+    return DecodeLegacyAddr(addr, params);
+}
+
+bool IsValidDestinationString(const std::string &addr,
+                              const CChainParams &params) {
+    return IsValidDestination(DecodeDestination(addr, params));
+}
+
+std::string EncodeDestination(const CTxDestination &dst) {
+    return EncodeDestination(dst, Params(), GetConfig());
+}
+
+CTxDestination DecodeDestination(const std::string &addr) {
+    return DecodeDestination(addr, Params());
+}
+
+bool IsValidDestinationString(const std::string &addr) {
+    return IsValidDestinationString(addr, Params());
+}
diff --git a/src/init.cpp b/src/init.cpp
--- a/src/init.cpp
+++ b/src/init.cpp
@@ -1574,6 +1574,7 @@
             }
         }
     }
+
     return true;
 }
 
diff --git a/src/qt/addresstablemodel.cpp b/src/qt/addresstablemodel.cpp
--- a/src/qt/addresstablemodel.cpp
+++ b/src/qt/addresstablemodel.cpp
@@ -7,7 +7,7 @@
 #include "guiutil.h"
 #include "walletmodel.h"
 
-#include "base58.h"
+#include "dstencode.h"
 #include "wallet/wallet.h"
 
 #include <QDebug>
diff --git a/src/qt/bitcoinaddressvalidator.cpp b/src/qt/bitcoinaddressvalidator.cpp
--- a/src/qt/bitcoinaddressvalidator.cpp
+++ b/src/qt/bitcoinaddressvalidator.cpp
@@ -4,7 +4,7 @@
 
 #include "bitcoinaddressvalidator.h"
 
-#include "base58.h"
+#include "dstencode.h"
 
 /* Base58 characters are:
      "123456789ABCDEFGHJKLMNPQRSTUVWXYZabcdefghijkmnopqrstuvwxyz"
diff --git a/src/qt/coincontroldialog.cpp b/src/qt/coincontroldialog.cpp
--- a/src/qt/coincontroldialog.cpp
+++ b/src/qt/coincontroldialog.cpp
@@ -13,6 +13,7 @@
 #include "txmempool.h"
 #include "walletmodel.h"
 
+#include "dstencode.h"
 #include "init.h"
 #include "policy/policy.h"
 #include "validation.h" // For mempool
diff --git a/src/qt/guiutil.cpp b/src/qt/guiutil.cpp
--- a/src/qt/guiutil.cpp
+++ b/src/qt/guiutil.cpp
@@ -9,6 +9,7 @@
 #include "qvalidatedlineedit.h"
 #include "walletmodel.h"
 
+#include "dstencode.h"
 #include "init.h"
 #include "policy/policy.h"
 #include "primitives/transaction.h"
diff --git a/src/qt/paymentserver.cpp b/src/qt/paymentserver.cpp
--- a/src/qt/paymentserver.cpp
+++ b/src/qt/paymentserver.cpp
@@ -8,8 +8,8 @@
 #include "guiutil.h"
 #include "optionsmodel.h"
 
-#include "base58.h"
 #include "chainparams.h"
+#include "dstencode.h"
 #include "policy/policy.h"
 #include "ui_interface.h"
 #include "util.h"
diff --git a/src/qt/sendcoinsdialog.cpp b/src/qt/sendcoinsdialog.cpp
--- a/src/qt/sendcoinsdialog.cpp
+++ b/src/qt/sendcoinsdialog.cpp
@@ -15,8 +15,8 @@
 #include "sendcoinsentry.h"
 #include "walletmodel.h"
 
-#include "base58.h"
 #include "chainparams.h"
+#include "dstencode.h"
 #include "txmempool.h"
 #include "ui_interface.h"
 #include "validation.h" // mempool and minRelayTxFee
diff --git a/src/qt/signverifymessagedialog.cpp b/src/qt/signverifymessagedialog.cpp
--- a/src/qt/signverifymessagedialog.cpp
+++ b/src/qt/signverifymessagedialog.cpp
@@ -10,7 +10,7 @@
 #include "platformstyle.h"
 #include "walletmodel.h"
 
-#include "base58.h"
+#include "dstencode.h"
 #include "init.h"
 #include "validation.h" // For strMessageMagic
 #include "wallet/wallet.h"
diff --git a/src/qt/transactiondesc.cpp b/src/qt/transactiondesc.cpp
--- a/src/qt/transactiondesc.cpp
+++ b/src/qt/transactiondesc.cpp
@@ -9,8 +9,8 @@
 #include "paymentserver.h"
 #include "transactionrecord.h"
 
-#include "base58.h"
 #include "consensus/consensus.h"
+#include "dstencode.h"
 #include "script/script.h"
 #include "timedata.h"
 #include "util.h"
diff --git a/src/qt/transactionrecord.cpp b/src/qt/transactionrecord.cpp
--- a/src/qt/transactionrecord.cpp
+++ b/src/qt/transactionrecord.cpp
@@ -4,8 +4,8 @@
 
 #include "transactionrecord.h"
 
-#include "base58.h"
 #include "consensus/consensus.h"
+#include "dstencode.h"
 #include "timedata.h"
 #include "validation.h"
 #include "wallet/finaltx.h"
diff --git a/src/qt/walletmodel.cpp b/src/qt/walletmodel.cpp
--- a/src/qt/walletmodel.cpp
+++ b/src/qt/walletmodel.cpp
@@ -12,7 +12,7 @@
 #include "recentrequeststablemodel.h"
 #include "transactiontablemodel.h"
 
-#include "base58.h"
+#include "dstencode.h"
 #include "keystore.h"
 #include "net.h" // for g_connman
 #include "sync.h"
diff --git a/src/rpc/mining.cpp b/src/rpc/mining.cpp
--- a/src/rpc/mining.cpp
+++ b/src/rpc/mining.cpp
@@ -4,7 +4,6 @@
 // file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 #include "amount.h"
-#include "base58.h"
 #include "chain.h"
 #include "chainparams.h"
 #include "config.h"
@@ -12,6 +11,7 @@
 #include "consensus/params.h"
 #include "consensus/validation.h"
 #include "core_io.h"
+#include "dstencode.h"
 #include "init.h"
 #include "miner.h"
 #include "net.h"
diff --git a/src/rpc/misc.cpp b/src/rpc/misc.cpp
--- a/src/rpc/misc.cpp
+++ b/src/rpc/misc.cpp
@@ -4,10 +4,10 @@
 // file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 #include "rpc/misc.h"
-
 #include "base58.h"
 #include "clientversion.h"
 #include "config.h"
+#include "dstencode.h"
 #include "init.h"
 #include "net.h"
 #include "netbase.h"
diff --git a/src/rpc/rawtransaction.cpp b/src/rpc/rawtransaction.cpp
--- a/src/rpc/rawtransaction.cpp
+++ b/src/rpc/rawtransaction.cpp
@@ -9,6 +9,7 @@
 #include "config.h"
 #include "consensus/validation.h"
 #include "core_io.h"
+#include "dstencode.h"
 #include "init.h"
 #include "keystore.h"
 #include "merkleblock.h"
diff --git a/src/test/base58_tests.cpp b/src/test/base58_tests.cpp
--- a/src/test/base58_tests.cpp
+++ b/src/test/base58_tests.cpp
@@ -163,7 +163,7 @@
                                 "key mismatch:" + strTest);
 
             // Private key must be invalid public key
-            destination = DecodeDestination(exp_base58string);
+            destination = DecodeLegacyAddr(exp_base58string, Params());
             BOOST_CHECK_MESSAGE(!IsValidDestination(destination),
                                 "IsValid privkey as pubkey:" + strTest);
         } else {
@@ -171,7 +171,7 @@
             std::string exp_addrType =
                 find_value(metadata, "addrType").get_str();
             // Must be valid public key
-            destination = DecodeDestination(exp_base58string);
+            destination = DecodeLegacyAddr(exp_base58string, Params());
             BOOST_CHECK_MESSAGE(IsValidDestination(destination),
                                 "!IsValid:" + strTest);
             BOOST_CHECK_MESSAGE((boost::get<CScriptID>(&destination) !=
@@ -236,7 +236,7 @@
                 BOOST_ERROR("Bad addrtype: " << strTest);
                 continue;
             }
-            std::string address = EncodeDestination(dest);
+            std::string address = EncodeLegacyAddr(dest, Params());
             BOOST_CHECK_MESSAGE(address == exp_base58string,
                                 "mismatch: " + strTest);
         }
@@ -267,7 +267,7 @@
         std::string exp_base58string = test[0].get_str();
 
         // must be invalid as public and as private key
-        destination = DecodeDestination(exp_base58string);
+        destination = DecodeLegacyAddr(exp_base58string, Params());
         BOOST_CHECK_MESSAGE(!IsValidDestination(destination),
                             "IsValid pubkey:" + strTest);
         secret.SetString(exp_base58string);
diff --git a/src/test/dstencode_tests.cpp b/src/test/dstencode_tests.cpp
new file mode 100644
--- /dev/null
+++ b/src/test/dstencode_tests.cpp
@@ -0,0 +1,78 @@
+// Copyright (c) 2017 The Bitcoin developers
+// Distributed under the MIT software license, see the accompanying
+// file COPYING or http://www.opensource.org/licenses/mit-license.php.
+
+#include "chainparams.h"
+#include "config.h"
+#include "dstencode.h"
+#include "test/test_bitcoin.h"
+
+#include <boost/test/unit_test.hpp>
+
+namespace {
+
+class DummyCfg : public Config {
+public:
+    DummyCfg() : useCashAddr(false) {}
+    virtual bool SetMaxBlockSize(uint64_t maxBlockSize) { return false; }
+    virtual uint64_t GetMaxBlockSize() const { return 0; }
+    virtual bool SetBlockPriorityPercentage(int64_t blockPriorityPercentage) {
+        return false;
+    }
+    virtual uint8_t GetBlockPriorityPercentage() const { return 0; }
+    virtual const CChainParams &GetChainParams() const {
+        return Params(CBaseChainParams::MAIN);
+    }
+    virtual void SetCashAddrEncoding(bool b) { useCashAddr = b; }
+    virtual bool UseCashAddrEncoding() const { return useCashAddr; }
+
+private:
+    bool useCashAddr;
+};
+
+} // anon ns
+
+BOOST_FIXTURE_TEST_SUITE(dstencode_tests, BasicTestingSetup)
+
+BOOST_AUTO_TEST_CASE(test_addresses) {
+    std::vector<uint8_t> hash = {118, 160, 64,  83,  189, 160, 168,
+                                 139, 218, 81,  119, 184, 106, 21,
+                                 195, 178, 159, 85,  152, 115};
+
+    const CTxDestination dstKey = CKeyID(uint160(hash));
+    const CTxDestination dstScript = CScriptID(uint160(hash));
+
+    std::string cashaddr_pubkey =
+        "bitcoincash:qpm2qsznhks23z7629mms6s4cwef74vcwvy22gdx6a";
+    std::string cashaddr_script =
+        "bitcoincash:ppm2qsznhks23z7629mms6s4cwef74vcwvn0h829pq";
+    std::string base58_pubkey = "1BpEi6DfDAUFd7GtittLSdBeYJvcoaVggu";
+    std::string base58_script = "3CWFddi6m4ndiGyKqzYvsFYagqDLPVMTzC";
+
+    const CChainParams &params = Params(CBaseChainParams::MAIN);
+    DummyCfg cfg;
+
+    // Check encoding
+    cfg.SetCashAddrEncoding(true);
+    BOOST_CHECK_EQUAL(cashaddr_pubkey, EncodeDestination(dstKey, params, cfg));
+    BOOST_CHECK_EQUAL(cashaddr_script,
+                      EncodeDestination(dstScript, params, cfg));
+    cfg.SetCashAddrEncoding(false);
+    BOOST_CHECK_EQUAL(base58_pubkey, EncodeDestination(dstKey, params, cfg));
+    BOOST_CHECK_EQUAL(base58_script, EncodeDestination(dstScript, params, cfg));
+
+    // Check decoding
+    BOOST_CHECK(dstKey == DecodeDestination(cashaddr_pubkey, params));
+    BOOST_CHECK(dstScript == DecodeDestination(cashaddr_script, params));
+    BOOST_CHECK(dstKey == DecodeDestination(base58_pubkey, params));
+    BOOST_CHECK(dstScript == DecodeDestination(base58_script, params));
+
+    // Validation
+    BOOST_CHECK(IsValidDestinationString(cashaddr_pubkey, params));
+    BOOST_CHECK(IsValidDestinationString(cashaddr_script, params));
+    BOOST_CHECK(IsValidDestinationString(base58_pubkey, params));
+    BOOST_CHECK(IsValidDestinationString(base58_script, params));
+    BOOST_CHECK(!IsValidDestinationString("notvalid", params));
+}
+
+BOOST_AUTO_TEST_SUITE_END()
diff --git a/src/test/key_tests.cpp b/src/test/key_tests.cpp
--- a/src/test/key_tests.cpp
+++ b/src/test/key_tests.cpp
@@ -5,6 +5,7 @@
 #include "key.h"
 
 #include "base58.h"
+#include "dstencode.h"
 #include "script/script.h"
 #include "test/test_bitcoin.h"
 #include "uint256.h"
diff --git a/src/wallet/rpcdump.cpp b/src/wallet/rpcdump.cpp
--- a/src/wallet/rpcdump.cpp
+++ b/src/wallet/rpcdump.cpp
@@ -5,6 +5,7 @@
 #include "base58.h"
 #include "chain.h"
 #include "core_io.h"
+#include "dstencode.h"
 #include "init.h"
 #include "merkleblock.h"
 #include "rpc/server.h"
diff --git a/src/wallet/rpcwallet.cpp b/src/wallet/rpcwallet.cpp
--- a/src/wallet/rpcwallet.cpp
+++ b/src/wallet/rpcwallet.cpp
@@ -4,12 +4,12 @@
 // file COPYING or http://www.opensource.org/licenses/mit-license.php.
 
 #include "amount.h"
-#include "base58.h"
 #include "chain.h"
 #include "chainparams.h" // for GetConsensus.
 #include "config.h"
 #include "consensus/validation.h"
 #include "core_io.h"
+#include "dstencode.h"
 #include "init.h"
 #include "net.h"
 #include "rpc/misc.h"
diff --git a/src/wallet/wallet.cpp b/src/wallet/wallet.cpp
--- a/src/wallet/wallet.cpp
+++ b/src/wallet/wallet.cpp
@@ -5,12 +5,12 @@
 
 #include "wallet/wallet.h"
 
-#include "base58.h"
 #include "chain.h"
 #include "checkpoints.h"
 #include "config.h"
 #include "consensus/consensus.h"
 #include "consensus/validation.h"
+#include "dstencode.h"
 #include "key.h"
 #include "keystore.h"
 #include "net.h"
diff --git a/src/wallet/walletdb.cpp b/src/wallet/walletdb.cpp
--- a/src/wallet/walletdb.cpp
+++ b/src/wallet/walletdb.cpp
@@ -5,8 +5,8 @@
 
 #include "wallet/walletdb.h"
 
-#include "base58.h"
 #include "consensus/validation.h"
+#include "dstencode.h"
 #include "protocol.h"
 #include "serialize.h"
 #include "sync.h"