The debate on whether to get rid of cash has been going on for some time. Some people think that a cashless society is a sign of progress and will bring many advantages while others are worried that there may be some drawbacks. This article looks at both the arguments for and against to help you decide whether getting rid of cash is a good idea.
Table of Contents
The Advantage of Digital Payments
The advocates of the cashless society have a number of arguments in support of their position. The main advantage of digital payments is that they are faster and easier than cash or checks. A cell phone or a debit card is all that is needed to make secure payments and keep track of spending and budgeting by means of clear transaction records.
The Potential to Reduce Crime
Another justification for going cashless is the fight against crime. Cash is usually favored for illegal transactions because it is not easily traceable and can be easily hidden. Ridding the world of cash could deter criminals and thereby make the community safer. Cash is used by drug dealers and traffickers; its elimination would be a blow to their trade. Likewise, terrorists also like the anonymity that comes with cash. A digital economy could be used to cut off their financial sources.
The Risk of Excluding Certain Groups
On the other hand, advancing to a completely digital economy is quite reasonable. A major issue is the implication of excluding the unbanked, that is, the elderly, the poor, and the people in rural areas who do not have access to digital payment tools. Cash may have to be the only form of payment for these groups of people.
The Vulnerability to Cyber Attacks
Moreover, a digital economy may be exposed to cyber risks. Although digital payments are generally secure, they are not immune to hacking, which may result in lost or misused financial data or slowed-down payment processes. In a cashless society, such attacks could affect many people as there may be no other way to pay.
The Final Verdict
In conclusion, there are both advantages and disadvantages of shifting to a digital economy. Going cashless may increase convenience and reduce crime but at the same time, it can exclude some people and increase cyber risk. The prohibition of cash is contingent on particular conditions and stakeholder concerns.