Should we embrace a cashless policy??

[hatshepsut93]

Cashless society is a marketing meme created by payment companies and banks. They are selling some sort of futuristic utopia to the people and telling them "you can be a part of the future today!". But I can guarantee you that in year 3000 people will still use some form of physical money, because physical money has its benefits and nothing will change that. Internet, electricity, all that infrastructure necessary for cashless payments be it banks or Bitcoin - it will never be available everywhere and 100% of the time.

[serjent05]

If we embrace a cashless policy, the economic model will be changed, here is the advantage and disadvantage of a cashless economy

The benefits of using a cashless policy

• No forged currency
• Transparent system
• Limited fraud
• Effortless Payment
• Easy International Pay

Read about the explanation here


While the disadvantages are:

• Low Literacy Rate
• Chances of corruption
• Economic Disparity
• Cyber Crime
• Overspending
• Identification Fraud

Explanation can be read here

No matter what the imperfection of embracing the cashless policy is, I think we should try to embrace what technology brings.  This imperfection can be fixed once the system is implemented.  Human knows how to adjust so basically any problem encountered in embracing this kind of system will be fixed along the way.

[bitcub]

I think we really need to implement this because it could lessen the spread of pandemic viruses. Dollar notes and coins has a lot of viruses passed from one hand to another.

[Darker45]

Now, with countries experiencing inflation, the best way to curb this inflation is by using this method of going cashless as there will be no much paper money in existence.

I'm afraid this is terribly wrong. There are a number of causes of inflation, but the particular form of money a country adopts is not one of them. I think inflation is not all about which form of money is being used by a country.

1. Reduces crime rates as there is no tangible money to steal.

But there's still money to steal.

2. Decrease in money laundering

Simply because fiat goes from hard cash to digital cash? I doubt it.

2. Every transaction you make is recorded.

But what particular kind of transaction it is is not. I have heard in my locality that many transactions involving illegal drugs are not anymore done through meetups. The use of digital cash has changed the game. The payment will now be sent through apps. Once payment confirmed, the item/s will be left somewhere.

The point is that while transactions are recorded, it is not known what kind of transactions they are. Payments are monitored, but whether the payment is made for a pair of shoes or a milk shake or a bicycle part or an amount of cocaine is not included in the monitoring.

[aoluain]

I've seen countries with excessive inflation adopting such techniques in order to avoid carrying hundreds of bills just to spend a few dollars worth of items (see Venezuela's case). I've also resorted into not carrying too much cash on me and mostly use my cards (either credit or debit). However, I'm rarely using them for small amounts of a few euros.

Approximately a month ago, I was in Poland for vacation and was dumbfounded seeing smaller vendors owning wireless terminals, accepting payments as small as a few cents, without any issues.

Honestly, I like not having to hold cash for transactions, in Poland, I didn't even spend a single euro which wasn't with card.

Thats contactless card payments, From the diagram below its worldwide.

https://suitsmecard.com/blog/contactless-limits-around-the-world

~snip~

With this form of payment its makes using credit and debit cards very convenient for us
to use but all the transactions can be traced. I see it here all the time, cash is being used less
and less.

So while societies are unknown to themselves adopting a cashless environment the vast majority
dont realise what they are giving up by abandoning cash and less realise the autonomy Bitcoin offers.

While I'm not fond of having my transactions traced, it's pretty much inevitable, thus, I don't actually bother. Nowadays, all our moves can be traced due to digitalisation. Our phones is one of the most traceable tools, which even tracks and keeps a record of your location history. We're not living in the 80s anymore, whether we like it or not, we can't keep everything private anymore.

I'm not too fond of the traceability either, It really comes down to convenience and how
we have been shuffled along to this point of using predominantly cards. For privacy
in the FIAT world, cash is the way to go.

If more and more people realise this they will have greater privacy. Bitcoin obviously has
more benefits when it comes to wealth portability and transferability.

Smartphones for sure can be a concern, thats another discussion

[davis196]

Pros:
1. Reduces crime rates as there is no tangible money to steal.
2. Decrease in money laundering
3. Less time and costs associated with handling, storing and depositing paper money.
4. Easier currency exchange.

1.Hacking and online crimes are a thing. Offline crimes aren't always about paper money. The criminals could steal items, jewelry, gold, electronics, diamonds, etc.
2.Online money laundering is a thing. Actually, most money laundering schemes are done without paper money.
3.This isn't such a big deal. Do you really think that "handling, storing and depositing paper money" is such a giant burden?
4.This statement is questionable. First, it depends of where you are living. Second, I think that exchanging currencies is very easy right now(at least in my country).
We don't need a cashless society, in order to make currency exchange easier.

[Mometaskers]

snip

That's just a little research he did but true. There is more cons to it and perhaps the government will do it that way after all they own us.

At first I actually doubt that government will have a fair look in developing this sort of technology like the CBDC since its best to just chase what other countries are doing. But after watching what they have been developing like tracking individual's carbon print like what they are talking about in this video, it might really be true that they'd be no  freedom to anyone. And It turns out China's CBDC is actually provides more liberty to its people.

So it wouldn't be surprising if people will fight back and will prefer to use cryptocurrency.

That carbon footprint bs is really just an excuse for more control, no wonder "Green" it's starting to get some pushback, because they push for these Big Brother measures. Whether it's China's or someone else, I'm not very positive about CBDCs. They already have an inordinately tight control on our lives, crypto would have been our chance to decouple from them.

[AicecreaME]

A cashless policy is an economy that runs operates on zero cash. Not as if there will be no cash in circulation, but it will be done digitally and can be fully traceable.
Now, with countries experiencing inflation, the best way to curb this inflation is by using this method of going cashless as there will be no much paper money in existence.
 But then, when these government bodies introduce these policies, they carefully scrap out the demerits of these proposals if I may call it that, because why worry about these "little disadvantages" when there is a world of good adopting such a policy could do for a country.
 I took out time to do a little research on this cashless economy plan, and found that though there are positives, there are also  some red flags that are worth pointing out.
 
Pros:
1. Reduces crime rates as there is no tangible money to steal.
2. Decrease in money laundering
3. Less time and costs associated with handling, storing and depositing paper money.
4. Easier currency exchange.

Cons:
1. Banks have full control of every single penny you own .
2. Every transaction you make is recorded.
3. Access to your own money can be blocked at the click of a button.
4. The government will decide what you can and cannot purchase
5. If your transaction are deemed in anyway questionable by those who create the questions, your money will be frozen "for your own good".
6. Potential data breach may expose personal information
7. Temptation to overexpand may increase.
 
If the world must go cashless, Bitcoin should be the better option, but as the government will always want to be in charge of your funds, CBDC is always projected by the government. https://www.google.com/url?q=https://www.managementstudyguide.com/cashless-economy-pros-and-cons.htm&sa=U&ved=2ahUKEwjNtYToxIT4AhXMyIUKHdrhC7MQFXoECAUQBg&usg=AOvVaw2132ZR98zH061TKrcKtzvu

I must say, for a numerous time already that this is an idealistic movement. Sure, going cashless can have many advantages. But it has its disadvantages too. And to be able to make it work, there would be many sacrifices that has to be made.

If I may remind you, not everyone is as techy as we are. Inclusivity will definitely be a factor why this won't be possible as of now or any time soon. There are people who aren't able to keep in pace with the fast innovation and technology such as the poor, the marginalized, the indigenous people, and the elders. If we'll keep on pushing this without further checking about it and making plans for them, are we even really advancing?

[AmoreJaz]

At first glance it is very interesting what you describe about the cashless method. It's just that this will only prolong your troubles with the government. I'm sure there will be parties from the government who strongly reject this kind of program. Or maybe it won't happen at all.

The problem is, before it can be put forward, how do people deal with instability in their understanding of technology? we live with many generations: conventional old, young fiat lovers, and various types of ownership in the form of physical assets. If suddenly changed to cashless, then the implementation to stay in accordance with the initial value, what will happen?

this is why we can't go full cashless. there will always be a part of the global population that will remain to the traditional method no matter what. sure, we are heading to digital age, but i believe using physical fiat will always be a part of financial transactions across the globe. we can always embrace a cashless policy and we are actually practicing such right now. but as we can observe, at some point, we still need physical fiat tx in some of our daily activities. why not be grateful that in our age, we can enjoy both of these worlds? and just use the method which is more convenient for you in a given situation.

[Zlantann]

Cashless policy entails the use of online banking systems that facilitates financial transactions without physical cash.One of the benefits of cashless policy is that it saves the government money used for printing and minting fiat. But some of this type of transactions are still regulated by government. But Bitcoin still serves as the best alternate to fiat because it is decentralized. But the major challenges of this cashless transactions mostly in developing nations are illiteracy, epileptic power supply and lack of internet facilities. Majority of inhabitants of these third world nations are uneducated hence they might not understand the online translations which seems more complex. Also, most cashless transactions depends on electricity to charge phones and other devices. And most of this nations lack constant power supply. Internet connections in these nations are lacking. This will no doubt affect cashless policy negatively.  

[Zilon]

The first two points in your pro are highly subjective as I do not completely align with you.
Stealing of money can can be easily done electronically than stealing a paper money and same thing can be said about money laundering.

Money laundering using cashless policy is even more stricter because there is no physical fund to convert to digital equivalent. For one to carry out money laundering there must be a general point where those money exist in the physical forms just like the case of paper money

 

Pros:
1. Reduces crime rates as there is no tangible money to steal.
2. Decrease in money laundering
3. Less time and costs associated with handling, storing and depositing paper money.
4. Easier currency exchange.

To add to this this will make direct foreign investment easier and swift, limiting the process of currency conversion in the foreign exchange market making payment gateway direct and accessible across boarders except if there are regional restrictions. But one key restriction this will suffer is the inability to use the internet and the CBDC softwares

[Spontaneous]

   In my observation using fiat there's advantage we can use to easily to change if we buy but the disadvantage is easily to still people. But in crypto yes you can transact easily but sad thing is easily to trace your crypto once there's a hacker sourounding us.

[Lida93]

The first two points in your pro are highly subjective as I do not completely align with you.
Stealing of money can can be easily done electronically than stealing a paper money and same thing can be said about money laundering.
The major pro I expected to see is that cashless policy reduces the cost of printing money. Some countries spend much into to print fiat, that is a problem.

I am a fan of flexibility. There should always be an alternative. If the economy can be mixed, you chose to go cashless or cash. Then, if government wants to encourage cashless policy, they could employ some incentives for people who adopted cashless policy, either in purchase of goods or payment for services.

I almost raised an eyebrow when I read the first two pros which almost wanted to make me feel like the OP really didn't go deep in his research to have come up with such.
For it's easier to laundry $1million in a cashless means than cash in bags.
These days financial crimes are more electronically than paper means, as fraudsters and hackers can easily do immediate online shopping with any of their victim's account.

[Oasisman]

Pros:
1. Reduces crime rates as there is no tangible money to steal.

I don't believe this one.
Incidents like this https://youtu.be/XI1Z81ADfKE would become rampant. These robbers won't be stealing the amount of money what you have on your pocket/wallet, but with mobile banking, crypto wallet, and other digital currency wallet, it could be accessed forcefully from you and take everything you have. How's that for a cons?

Think of it, robbers before the digital assets could steal your $100 inside your pocket, but they can't touch what's left on your bank.

[Kakmakr]

A cashless policy is an economy that runs operates on zero cash. Not as if there will be no cash in circulation, but it will be done digitally and can be fully traceable.
Now, with countries experiencing inflation, the best way to curb this inflation is by using this method of going cashless as there will be no much paper money in existence.
 But then, when these government bodies introduce these policies, they carefully scrap out the demerits of these proposals if I may call it that, because why worry about these "little disadvantages" when there is a world of good adopting such a policy could do for a country.
 I took out time to do a little research on this cashless economy plan, and found that though there are positives, there are also  some red flags that are worth pointing out.
 
Pros:
1. Reduces crime rates as there is no tangible money to steal.
2. Decrease in money laundering
3. Less time and costs associated with handling, storing and depositing paper money.
4. Easier currency exchange.

Cons:
1. Banks have full control of every single penny you own .
2. Every transaction you make is recorded.
3. Access to your own money can be blocked at the click of a button.
4. The government will decide what you can and cannot purchase
5. If your transaction are deemed in anyway questionable by those who create the questions, your money will be frozen "for your own good".
6. Potential data breach may expose personal information
7. Temptation to overexpand may increase.
 
If the world must go cashless, Bitcoin should be the better option, but as the government will always want to be in charge of your funds, CBDC is always projected by the government. https://www.google.com/url?q=https://www.managementstudyguide.com/cashless-economy-pros-and-cons.htm&sa=U&ved=2ahUKEwjNtYToxIT4AhXMyIUKHdrhC7MQFXoECAUQBg&usg=AOvVaw2132ZR98zH061TKrcKtzvu

Comments on Pros

1. The fact that there are no physical cash anymore, will not decrease theft. A criminal will just evolve and steal money digitally.
2. Money laundering are mostly done by large syndicates that has people inside the Banking system... 
3. Yes..... and also less expenses for the government to create the money from Cotton/Silk/Metal like Copper etc.
4. Well, a lot of digital payments are perceived to be instant on the "user" side.

Comments on Cons

1. Banks already have full control over people's wealth. (It's all on their internal database)
2. See above
3. Banks close people's accounts on a push of a button now
4. Do they decide now? No, you can still access your money via the ATM and buy what you want.
5. People use third party wallets & exchanges.. those centralized entities does the same as Banks.
6. Not if you use Mixer services
7. Over spend? Well, I can fire up my Bitcoin wallet now..and go on a spending spree.... how is that different?

[passwordnow]

We're going up to that point but the last ones are those developing and third world countries. But as much as I can see with most of the countries, there's already a system for each of them with cashless payments.

I think we really need to implement this because it could lessen the spread of pandemic viruses. Dollar notes and coins has a lot of viruses passed from one hand to another.

That's also a good reason for its adoption even though pre-pandemic, there were countries that have done it already. But just for another reason, it's actually on the paper of those countries that wants to lessen the cases and contraction of the virus.

[Hydrogen]

Pros:
1. Reduces crime rates as there is no tangible money to steal.
2. Decrease in money laundering

Most crime today is electronic rather than physical in nature. The biggest bank heists were all electronic. Increasing the amount of electronic money in circulation should correlate with elevated crime.

Governments and banks contribute to a significant volume of money laundering in the world. Crime syndicates, drug cartels and terrorist groups usually have connections with big corporations, banks and governments which allow them to launder money. Preventing average consumers from laundering funds won't necessarily do anything to address the issue. As they have never really been targeted for money laundering. Most of the action is with big players in large sums of cash which only institutional upper level establishments deal in.

A cashless society could reduce the number of financial tools, options and opportunities average people have access to. Which would in turn stifle economic growth and innovation. While the digital world has contributed much towards society. Not everything is better when its digitized. There are some cases where written record keeping and a legitimate paper trail are better suited to roles than digital alternatives. Cash and paper money could be one example of this.

[stomachgrowls]

Pros:
1. Reduces crime rates as there is no tangible money to steal.

I don't believe this one.
Incidents like this https://youtu.be/XI1Z81ADfKE would become rampant. These robbers won't be stealing the amount of money what you have on your pocket/wallet, but with mobile banking, crypto wallet, and other digital currency wallet, it could be accessed forcefully from you and take everything you have. How's that for a cons?

Think of it, robbers before the digital assets could steal your $100 inside your pocket, but they can't touch what's left on your bank.

As new era comes specially for digitalized age then its no surprise about changes in regarding about enhancing also their way of stealing or robbing other peoples money not only physical but also digital.

Its really that impossible that we do cross out the probabilities which are obviously can really be done if those people do have the chance on doing so, thats why its never been good to be that confident
when it comes to security of your assets whether physical or online that we do have.

Cashless society could be done but we cant really get rid on fiat existence for sure.

[Sebas.tian]

I think we really need to implement this because it could lessen the spread of pandemic viruses. Dollar notes and coins has a lot of viruses passed from one hand to another.

Exactly, because it will really help many countries that pandemic has reduced their economy to use cashless policy system to recover all their losses they have experienced during the pandemic season. Those that adopted decentralized currency some years ago in their land, will not find it difficult to make use of cashless policy to improve their businesses and other things in their country. It will reduce inflation in the country and improve deflation which is the heart desires of humanity.

[justdimin]

That's just a little research he did but true. There is more cons to it and perhaps the government will do it that way after all they own us.

At first I actually doubt that government will have a fair look in developing this sort of technology like the CBDC since its best to just chase what other countries are doing. But after watching what they have been developing like tracking individual's carbon print like what they are talking about in this video, it might really be true that they'd be no  freedom to anyone. And It turns out China's CBDC is actually provides more liberty to its people.

So it wouldn't be surprising if people will fight back and will prefer to use cryptocurrency.

That carbon footprint bs is really just an excuse for more control, no wonder "Green" it's starting to get some pushback, because they push for these Big Brother measures. Whether it's China's or someone else, I'm not very positive about CBDCs. They already have an inordinately tight control on our lives, crypto would have been our chance to decouple from them.

The real reason is that they can attack crypto from this point, and that is why they are doing it. There were no other lanes that they could attack crypto, they couldn't find any other methods so this one is "half" truth and they are going to keep attacking crypto because of this.

Eventually people will realize that this is nothing at all, we just use energy and not cause pollution because the ones that cause pollution and problems in the world and why it is not green is the people who we get this energy from and not us. But until that moment, since they couldn't find anything else to attack to crypto, there will be some who will use this reason.