Is a 'No Cash' society a threat?

James_Green_1982

The move away from cash towards digital only trundles on.
Interestingly (and perhaps alarmingly) this move appears to be encouraged by many members of the public.

Is it a ''good idea'' to abandon cash ifor the sake of convenience and to tackle crime and tax evasion?

Or does a digital only system hand too much power and control to the establishment and politicians etc?

Carl31

If convenience, prevention of crime and stopped tax evasion are not good enough argument for it, im not sure what is?

Sanctioned_Parts_List

Cash is only one transaction medium. If physical cash disappears, expect people to use gold/silver, crypto-currencies, or physical foreign currencies instead.

James_Green_1982

Sanctioned_Parts_List wrote: »

Cash is only one transaction medium. If physical cash disappears, expect people to use gold/silver, crypto-currencies, or physical foreign currencies instead.

Yes. It will be interesting to see which currency (if any) goes ''digital only'' first.
I would expect the GBP to go cashless before the Euro. Because although Sweden seems keen on cashless - many other countries in the Eurozone are much keener on physical cash.

I'm pretty sure the local drug dealers could cope with using USD or Euros.

phillw

James_Green_1982 wrote: »

Because although Sweden seems keen on cashless - many other countries in the Eurozone are much keener on physical cash.

They are keen on decreasing the amount of cash transactions, but not being cashless.

https://theconversation.com/depending-on-who-you-are-the-benefits-of-a-cashless-society-are-greatly-overrated-113268

The nation is now counting the societal costs.

The Riksbank, Sweden’s Central Bank, is asking all banks to keep providing and accepting cash while government works out how best to protect those who most rely on cash – such as those aged 65 or more, those living in rural areas, those with disabilities and recent immigrants.

An estimated 1 million Swedes are not comfortable with using a computer or smart phone to do their banking. Immigrants often do not have a bank account or credit history to get a payment card.

I don't see us doing it ever, like cheques didn't disappear either.

bertiewhite

James_Green_1982 wrote: »

I'm pretty sure the local drug dealers could cope with using USD or Euros.

I was thinking the same thing about gypsies/travellers - don't they favour cash?

James_Green_1982

bertiewhite wrote: »

I was thinking the same thing about gypsies/travellers - don't they favour cash?

Yes.
I think the travelling community would come out well if there was a major financial upset.
They stay largely outside the government / banking system, so they wouldn't be hit so badly by bank bail-ins, property taxes, confiscations etc, etc.

Graham_Devon

Digital currency brings with it a whole new ballgame of crime. Look at bitcoin as just one example and the trades that happen under the currency.

Digital currency in isolation is just too risky. Look at what happens when a banks online system goes down for just a single day.

At least cash can't be "spent" via the press of a button on a card reader near your pocket.

Sanctioned_Parts_List

Real world example: while living in China, to set up my bank account, my ID, visa and so forth were recorded. When I then set up WeChat Pay and Alipay I plugged in my name and passport numbers into those apps, which were then checked against the bank's live database. Interestingly, the facial recognition cameras were only just going up around town when I left, but I've heard from friends that they now also train the system on your passport photo, and can deduct fines automatically from your WeChat balance if you, e.g. jaywalk.

WeChat and Alipay allow people to send cash to each other and to businesses far more cheaply and easily than Google/Paypal/Apple Pay manage to over here. And the Chinese government can inspect these at will.

So, if you jaywalk, you get an immediate fine. More sinister, if you've been regularly exchanging hongbao with somebody who is then investigated for a crime, you can guarantee that at the very least your social credit rating will drop.

Now, as a large fraction of China doesn't yet use smartphones, cash will be around for a long while, which will, I'm sure, relieve all the various people who don't want evidence of their mistresses, massage parlour visits, graft payments or whatever showing up in the system...

Tammykitty

How would things like car boot sales etc ever work with a cashless society?


There would also have to be a major move away from charging for each foreign currency transactions on cards (I use cash more abroad than at home and generally lift €200 and then spend as I go along), if I spent €1 on a bottle of water - it could cost €2 on a lot of cards! (Although I do have a fee free card - a lot of others don't)


A lot of people still value cash, it can be very useful for budgeting - lift £50 for spending money for the weekend or whatever, instead of a card, where you don't add up how much you spend.


Technology also fails sometimes - its life, cash is a good back up.


My local pub was able to open up when the power was out in bad weather, but of course could only accept cash

Sanctioned_Parts_List

Tammykitty wrote: »

How would things like car boot sales etc ever work with a cashless society?

That part's not difficult. In Alipay, for example, you can have your phone display a QR code, the other party scans it, enters the transaction value, and authenticates it. You receive, confirm, and the money's transferred across. Takes no longer than counting change.