Table of Contents
Introduction: The Role of Cash in Today's Society
Money has been in use for many years. It has been used as a means of exchanging goods and services in the past, and it has been used to indicate wealth. Nevertheless, with the development of the digital payment systems, the importance of cash in society is changing. In this article, I will discuss the advantages and disadvantages of using cash in the society of today, as well as the impact of cashless transactions on small businesses and unbanked population.
The Pros of Using Cash: Anonymity and Security
The major advantage of using cash is that it preserves the anonymity of the user. When you use cash, there is no way of tracing who made the purchase which means that your identity will not be revealed to anyone. This is especially useful for people who lead private lives and would not want their financial activities to be known to others. Another advantage of using cash is that it is more secure as compared to other forms of payment. Also, since cash is not stored in a digital form, it cannot be hacked or lost as easily. However, if you mislay your cash, then you can only lose the amount that you had with you at the time. On the other hand, if you lose your credit card or any other form of digital money, then someone can get all the money from your account.
The Cons of Using Digital Payment Methods: Privacy Concerns and Cybersecurity Risks
However, there are some disadvantages of digital payment methods. The main issue is privacy. When you make use of the digital payment methods, the information you enter is saved in a database, which means that it can be accessed by hackers or other unauthorized persons. Additionally, some people are not comfortable with the idea of their financial activities being tracked and accounted for. Another disadvantage of digital payment methods is cybersecurity. Digital payment methods are exposed to cyber attacks which means that you can lose your money or have your personal details leaked. Also, if you lose your digital payment instrument, someone can easily use it and spend all the money in your account.
The Impact of Cashless Transactions on Small Businesses and the Unbanked
The effects of the cashless society have been far-reaching to small businesses and the unbanked. This kind of change may affect street vendors and farmers’ markets, which mostly operate on cash basis. Furthermore, those who are unbanked, that is, those who do not have access to conventional banking systems, may not be able to take advantage of the digital payment systems.
Nevertheless, there are advantages of cashless transactions for small businesses and the unbanked. It is possible that the digital payment solutions can help small businesses to save money and to work faster, and can help the unbanked to get access to the financial services that they could not get otherwise.
