The world is moving towards a cashless society at a faster rate in recent years. The shift from a cash-centric society to a cashless one happens almost anywhere in the world. In fact, the current trends trajectory indicates that we will become a complete cashless society by 2026.
The cashless movement does not exist in just one or two parts of the world – it is spreading all around the globe.
In 2017, for example, payments technology company Visa offered a huge sum of cash to firms who were willing to participate in its Cashless Challenge. The challenge encouraged firms and their customers to use cashless in every transaction – meaning any cash payment would not be permitted. While Swedes jubilantly embraced the novel change, people in Washington DC reconsidered the pros and cons of the movement.
Another example is a recent study by Raconteur. According to the study, 96% of Singaporeans are already using biometric or cashless payments. Besides Singaporeans, Scandinavians also embark positive attitudes towards the change. Meanwhile, Indians and Americans are still in doubt.
Based on the two examples above, this issue is arguably a controversial one. But what will happen when the world becomes a fully cashless society? Let’s briefly discuss the pros and cons.
Also Read: Become a Cashless Society, What Can We Learn from China?
Pros of a Cashless Society
With the availability of digital transaction in every single aspect of life today, the activity will most likely be easier to do. An effortless single tap on a smartphone or a single swipe or scan of a piece of plastic will do the job.
Also, reviewing from the security’s viewpoint, it will be far safer and more secure than the conventional payment; at least at first. That said, although the quantity of crime rates might be dropping significantly, crimes with a more complex quality, cybercrimes, will globally infest.
From an environmental vantage point, this will, if not notably, reduce the use of papers all around the globe. This is so for, although there prevails recycle systems of old money, there still exists an occurrence where hectares of forests are turned into what we call cash as for now. By going cashless, it will be a huge contribution towards the environment’s sustainability.
Cons of a Cashless Society
A complete cashless transformation does not always mean good. For instance, this utter revolution will most likely provide difficulties for the elderly. More importantly, it might be considerably difficult for them to embrace the new ways of transactions. Considering the possibility, the government would surely need to facilitate the elderly and that is truly homework.
Moreover, analysts also opine that this might lead to a great employment loss, specifically at banks. Besides that, current ATM will lose its significance. Furthermore, many small banks might have to close since small cash transaction will no longer be present.
The arguably most controversial disadvantage is that cashless will reduce accessibility of money for people. To be specific, the demography of the foregoing is a community of students and people with low-income.
Academics at Georgetown University believes that this is an elitist agenda to capitalize financial matters more. An example of inaccessibility can be spectated in India where transition from conventional payments to digital payments is challenging.
Also Read: Are Indonesian Ready to be Cashless Society
