The recent health crisis related to the COVID-19 outbreak appears to have accelerated the transition to a cashless society, with cashless payments increasing in line with the virus cases.
However, our results in the Genesis Mining Study “Perception and Understanding of Money 2020” show that the vast majority of Americans are not motivated to give up their paper money permanently.
More precisely, we found that 60% of respondents are against the idea of replacing paper money with “only digital money”. This situation can be “the devil you know” versus “the devil you don’t know,” where familiarity with paper money is the driving force behind the warning not to give it up. That is understandable, but if resistance to change is the driving principle for humans, then progress of any kind is impossible.
A better knowledge of the benefits of digital transactions could change the mind of those who want to change their mind.
It is also possible that the movement towards a cashless society is a non-democratic issue – that is, it may be inevitable, depending on who wants to see a non-monetary society emerge. Taking advantage of digital money can ease our transition to new financial frontiers.
Coronavirus COVID-19 has accelerated the cashless revolution
The US news agency Axios cites numerous facts and figures that indicate that growing health awareness in the face of the global pandemic has accelerated the migration to a cashless society. Its results include:
People in different countries are concerned about the material money they see as a possible channel for the transmission of the virus.
63% of consumers say they use cash less than before the pandemic.
Payment for goods and services rose through apps and websites, not physical money.
Of course, we have to take into account the fact that quarantine measures have prevented many from accessing ATMs, paying for goods and services in person, or engaging in activities where they would normally use cash. In a way, the rise in cashless payments did not fully reflect the voluntary attitude of consumers. However, it can be habit forming.
The idea that your dollars and currencies are dirtier than you’d like to think – unlike the coronavirus – is not a new idea. A 2017 study found that a number of bills floating around in New York City contained various bacteria and viruses.
Many people’s aversion to unnecessary risks is reflected in the widespread willingness to wear masks, quarantine, and take other health precautions. Increasingly, previous physical money can be viewed in favor of digital payments as another way of protecting yourself from possible virus infection.
Benefits of not paying in cash
Even before “COVID-19” became a generally accepted term, proponents of digital payments were touting the advantages of cashless societies in whole or in part. We’ve already covered the potential health benefits of avoiding dirty money for cleaner payment methods.
In addition to the health benefits, the freedom from criticism can include the following:
Thieves and thieves have greater difficulty stealing your material money.
Greater ability to track illegal activities that are more easily committed by laundering cash through corporations, banks, and other means.
Some of the trade-related perks that Visa points out include faster (on average) transactions, fewer problems for customers who might otherwise need to buy, store, settle, and distribute cash, and the fact that customers are statistically more likely to be more likely to use that Spend business with a card instead of criticism.
Easy money exchange.
Some forms of digital payments may also be more secure. The security standards used to protect cryptocurrency wallets are being adopted for other purposes, as stated by the Big Four accounting firm Deloitte, and adopting such practices could further enhance asset protection in a cashless society.