http://www.bbc.co.uk/news/business-21427472
This article talks about how the world is steadily approaching a cash-free environment because of all the different payment options now available with the help of start ups. But really, it's hard to see a future without cash. Cash is important because of the convenience, anonymity and useful when the 'power goes out'. However, the new payment methods, especially those tailored to mobile phones have made making payments extremely extremely convenient. Most higher income earners shy away from cash while low income earners, for example those who spend about $2 a day really depend on cash and the cost of cash mostly falls on them. Increased access to a bank account, credit, insurance and all the tools necessary for economic stability and electronic money makes this all much easier. Those without access to such tools are usually the poor, and it makes it even harder for them to come out of poverty.
This article talks about how the world is steadily approaching a cash-free environment because of all the different payment options now available with the help of start ups. But really, it's hard to see a future without cash. Cash is important because of the convenience, anonymity and useful when the 'power goes out'. However, the new payment methods, especially those tailored to mobile phones have made making payments extremely extremely convenient. Most higher income earners shy away from cash while low income earners, for example those who spend about $2 a day really depend on cash and the cost of cash mostly falls on them. Increased access to a bank account, credit, insurance and all the tools necessary for economic stability and electronic money makes this all much easier. Those without access to such tools are usually the poor, and it makes it even harder for them to come out of poverty.
The idea of a cashless society is a hard one to wrap your mind around. We have all grown up always having cash around us and to realize that today most of us just swipe our cards and go shows us how little cash is used. I am not quite sure how it would be possible to go to a completely cashless society because it would leave too much power to the banks and government. Many people still do not bank today because they simply do not trust banks so they just throw their money under their mattress, granted these are probably not people that are making millions. The point is there are still many underlying problems that need to be resolved before we go completely cashless. It will be very interesting to see if our grandchildren know what a dollar is.
ReplyDeleteAs long as there is a market for cash, it will still exist. I know that I try to avoid using my credit card whenever possible, and I don't have a debit card. But I think I am in the minority on that. I know that I'll still demand cash, and if there are enough people like me I don't see it going away anytime soon.
ReplyDeleteA main problem with moving to a cashless society, besides getting the idea accepted by the general populous is security. Any person with a lap top and enough knowledge could wipe out a persons entire net worth, which would be much hard to accomplish in a cash society. There will have to be massive safeguards taken place by the government and independent business to assure situations like this are far and few between.
ReplyDeleteSeeing as convenient instruments like the debit card have only been around since 1966, it is in a fairly short amount of time that they have gained popularity and the reliance on cash is much less now. I don't know if we will move to a completely cashless society but one thing is certain: the reliance on cash is decreasing as time goes by and while older generations seem to be more hesitant than younger ones, it is a matter of time before cash becomes secondary. It will not completely disappear, but I can see it not being the primary method of payment.
ReplyDeleteI believe there will always be a demand for cash. Although we are seeing more electronic money entering the scene, nothing with force out the demand for physical cash. Many restaurants only accept cash and I don't see that changing any time soon. I have a debit card and use it for most of my everyday transactions. I believe its easier than carrying cash and much more sensible. I don't think we will ever see a completely cash free market.
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