What is a Cashless Society?

In order to properly discuss this topic, we’d like to look at what is a cashless society, and what do we mean by that?

Cashless can refer to any method of payment that doesn’t require physical bank notes (cash and coins). This could be debit cards, credit cards, mobile pay apps, or even facial recognition tied with one of the other payment methods. You might even use cryptocurrency, electronic fund transfers, or other forms of payment.

Typically, most people don’t count bartering as a type of cashless payment method.

While this has been discussed for years, it is becoming more and more relevant with new technologies. Despite this, many countries are producing more bank notes, not less. This can lead to inflation. Cashless society – Wikipedia

Both (for profit) banks and governments have been pushing cashless options for a variety of reasons. What Is a Cashless Society and How Does It Work? | Britannica

The numbers of people primarily using a cashless payment method varies between country, and the years observed. However, even countries that highly implement it are seeing only 60 to 80% usage, at this time, while many countries are much lower. This can be due to limitations with their own power grid and internet access, to trust in their systems.

El Salvador, for example, recently officially recognized bitcoin as legal tender Bitcoin Is Now Legal Tender In El Salvador : NPR. On the other end of the spectrum, China recently banned all cryptocurrency. What’s behind China’s cryptocurrency ban? | World Economic Forum (weforum.org) This is despite China having many other forms of cashless payments.

The Challenges of a Cashless Society

Interestingly, if you look at what some people tout as the advantages, and the disadvantages, of a cashless society, they are either the same, or the polar opposite of one another.

This means it is a contentious issue which must be carefully considered as it would potentially affect everyone. For our discussion, we are not arguing for or against cashless payment processes, such as credit or debit cards. We’re only talking about mandated cashlessness for all.

An Interesting Question

Another question to ask is, can a business refuse to take cash. After all, what does it say on a dollar bill?

What is a Cashless Society? was originally found on Access 2 Learn