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The Cashless Society – The Present and The Future

How do you transact in your daily life? Do you pay by cash or rather send in the money electronically? Some for instance, spend money with online casino promos, while others prefer to pay with cash.

However, whether it is a coffee shop, a grocery store, or other purchases you make outdoors, it’s no secret that going cashless is what you are looking at in the future.

What Makes A Cashless Economy Seem So Realistic?

It’s so easy and accessible for the people to make their payments everywhere they need to. people have now starting believing the fact that going cashless is more convenient than carrying cash with you all the time, as it reduces the risk of theft.

While Americans have been relatively habitual along with traditional cash and credit cards to the use of Apple pay or Digital Starbuck gift cards.

The Top Examples of Cashless Economies Today

On the streets of Chinese cities, we can find people making purchases just by scanning their phones regardless of whether buying dumplings from the street or buying electronics from the department store. Cashless future is what we see in countries around the world, like in China, with the existence of digital payment apps like WeChat pay and Alipay.

Digital payment over bills and coins is started by the businesses and consumers. The governments around the world favor to be in transition to a cashless society.

As a part of demonetization RS 500 and 1,000 notes have been banned by the government of India in 2016.

Since 2015, Norway’s largest bank named Nordea has refused to accept cash.

Although cash transactions in Australia only make up 10% of all transactions, government has gone so far in prohibiting cash transactions over $7500.

What are the Benefits to the Government?

For one, if society becomes cashless it will eliminate the cost of minting coins and printing bills. Printing and distributing cash can imply high cost to the economies, as a result government is  realising the cost benefits of heading towards a cashless economy, not only to speed up the transactions but also to improve the traceability which is of great interest to government.

A cashless society will give more room or control to the government over the areas like as on the record digital currencies can be better prevented from crossing the border line as in case of paper currency which can be taken out of the country easily.

2016 was the year when the use of cards was recorded to be the highest than that of cash according to the Euromoniter International. Since then a lot has happened.

The Downsides of Going Cashless

  • People will completely rely on Banks to store their wealth which can be dangerous at times when Banks fail
  • Not having physical bills will lead to less financial Independence.
  • Mere power outages during natural disasters can strip people of their ability to make transactions.

Are you in support of a cashless economy? Let us know below.

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