Skip to main content

News Center

Could We Become a Cashless Society?

The idea of a cashless society may not sound so farfetched. In fact, you may already be virtually cashless, paying only with cards or via mobile wallet apps. But have you consider a society completely cashless and what that would mean? In a trending topic, we’ll explore the perceived benefits and potential drawbacks of becoming cash-free. 

Benefits 

Less to Lose. You might be thinking you’d rather lose $100 cash than lose your bank card that could potentially be stolen. But cash isn’t insured. Your funds, on the other hand, in your bank account are insured.  

Record of transaction. Many illegal transactions happen under the exchange of cash. While criminals are always at work to find ways to skirt the system, less cash means less opportunity to transact without record. 

No more dirty money. Cash is dirty. When you think about the millions of germ infested hands your money has lined, it’s enough to make your skin crawl.  

No cash management. It costs money to print bills and coins. It also costs to move money whether it’s someone’s job like delivering and picking up funds in an armored vehicle or a part of the job like a business owner’s valuable time making bank runs. 

Disadvantages 

Privacy. Although there may be no cash to handle, you still need trusted organizations to handle your data. Cash allows you to spend money and receive funds anonymously. 

Fraud. As long as you’re using technology, your information is vulnerable to an attack by hackers. If your account is hacked and drained or maxed out, without cash, you have little alternative for funds.   

Inequality. The poor may have little to no access to technology, or even a bank account. Forms of aid for those struggling would be severely limited. 

A potential for higher fees. With cash, your purchase is free and clear. With cards, someone is usually paid a fee which is passed onto the consumer in many forms. 

There are many other advantages and disadvantages to argue. One thing’s for sure, while many Americans are already practicing in cashless transactions, without cash entirely we would see an explosion in more electronic payment apps, mobile payment services, and eventually alternative forms of currency – some of which we are already seeing such as bitcoin. The future from there is certainly, uncertain.  

Source: The Balance
 

ONLINE BANKING