بِسْمِ اللهِ الرَّحْمٰنِ الرَّحِيْمِ
We can see how cashless payment system is on rise and how the elites, globalists and governments is supporting it. We are on a track towards a cashless society where cash would be a thing of past. The financial transaction in physical form would be a thing of past would it be a boon or ban.
A lot of debate which sparked many concerns with it related to privacy and freedom of man. That it would make a complete surveillance although crime would reduce. The biggest gift Electronic cash sector got is from internet otherwise there was cashless card system helping to go cashless around the world.
I will discuss various aspects to why Cashless economy would be good or bad leaving on freedom of man to decide the truth :-
The risk of theft is reduced. Owners do not fear cash theft from there stores. Cash transfers needs security and employees especially to banks as they use armored vehicle for money transfer. Government do expenditures in money printing and distribution. thereby spending on papers.
Cash can transmit disease. A concern that raised by covid-19 prominently. But there are other things also that can promote such type of diseases including credit card terminals and pin pads. E-cash transactions have increased in times of corona-virus after it.
Cashless system has smooth transaction. Where change exchange has no problems with transaction is done fast.
One of the points why people support cashless society is reduction of illegal activities. Such as drug supply, smuggling and terrorism. But it also has a flaw as bit coins are being used for illegal activities. Although many countries have brought regulations to it as to prevent illegal transaction. Large monetary values can be collected in real estate, antiques. And resources such as diamonds, gold, silver, and platinum. In this process some have proposed to eliminated high denomination currency. Allowing only small currency in the market.
Demonetization and cashless economy a prominent concept. High denomination notes are banned or reduced in it. In order to promote e-cash as well as reduce illegal activities. Most prominent case is of India. When Rupee 500- 1000 currency notes were abolished in a night with a prior notice of 4 hours. In order to curb black money although not at all successful.
The Data collection easy with systems saving all transaction records. So, Data collection is eliminated. It also reduces chances of illegal activities.
Concerns of cashless system –
The major concern that comes in it is Privacy of users. Privacy is a part of Freedom and liberty and must not be touched. The co-operates and governments can now check on personal details of person where he buys and sell. Making a complete surveillance state. Data breaching is common during elections where others personal data can be used for one’s benefit.
There is a concern with people who are unbank mainly senior citizen and financially weak. Who are not connected to Fin tech. The cashless policy challenges them. Especially in developing countries.
When payment transactions are stored in servers, it increases the risks of unauthorized breaches by hackers. Digital frauds are a major risk going cashless. As online theft is present where hackers can invade accounts.
Opponents raise concern as tracking all transactions, would let a central government to Enforce a transaction tax. on every person-to-person payment. Government would have a centralized control over people. Playing with interest rates. Can create a surveillance state where if anybody tries to question government his payment system could be blocked.
Cashless policy has led to overspending as People tend to spend more unknowingly.
My opinion –
My opinion on it is that there should be a balance between use of cash as well as electronic cash. Complete abolition of cash can lead many problems difficult to imagine. Germany is a good example of it. When other Europe is promoting E-cash it has maintained base of cash.
Whereas Sweden is the fastest growing cash less economy. Although cash is still in market. But people of rural areas and small businesses face problem. Although a new system such as Swish is there but it has many problems.
Wherever the Future takes us Humans should not let loose their freedom and liberty in front of machines and system. Letting physical money extinct would harm us a lot.