In Sweden, cash in circulation represents only 1% of the country’s GDP, and some experts predict that the country will be “completely cashless” by 2023. In China’s largest cities, more than 90% of the population uses WeChat Pay and Alipay. As the main payment method, followed by cash.
Moving to a world without paper books and coins may seem inevitable, but this week’s survey mentioned us that the number of deaths can be greatly exaggerated. The Genesis Mining study, “Financial Insights and Understanding 2020,” reports that 60% of Americans oppose the idea of replacing paper money with digital money only. “Americans don’t care about permanently separating themselves from their paper money,” said Marco Strange, Genesis CEO.
How do you explain this finding, if the march to a non-monetary global society (that is, where cash is not the predominant mode of payment) is unforgettable, as stated by one person, including Jonas Heidmann, professor of digitization at Copenhagen Business School. ?
“There are many reasons for this,” said Richard Holden, a professor of economics at New York University, including “distrust of the central government and poor nationwide payment infrastructure [in the US].” South Wales, Cointelegraph reported. The dollar is a distinct symbol in the sense that other currencies – except perhaps the pound sterling – are not. ”
Money can lie for some time
But the United States may be more than just a palace, and there are good reasons why the “lack of criticism” does not spread overnight. Vinay Prabhakar, vice president of product marketing at Volante Technologies, a financial solutions provider, told Cointelegraph that one dollar could be considered “a violation of privacy and individual freedoms.”
A cash-free society can also discriminate against the poor, as Vlad Totia, payments analyst at GlobalData, payments and consulting analyst, told Cointelegraph: “A digital society requires people to have at least one device and an internet connection to manage their personal accounts. Data. Rescue. But many in the United States and other countries still lack this access, so removing monetary risks will further disenfranchise the poorest members of society and exacerbate income inequality.
There may be psychological drawbacks, Holden noted: “People have used cash for a long time, and it took a mindset to get rid of cash entirely. But many young people cannot imagine the world before the iPhone.”
Holden went on to say that advanced economies would benefit greatly from the monetary move. Digital payment systems can reduce tax evasion and reduce illegal transactions that often occur in cash. Holden notes that “cash is embarrassing in many ways: it is slow during transactions, processing cash is time consuming and requires expensive business insurance.”
Ease of using cash
Headman conducted a study to show that Sweden is on track to become the world’s first cashless society by March 2023, but this study was conducted before the coronavirus pandemic. Has her schedule changed? “The cashless settlement will come much sooner,” Headman told Cointelegraph. “The use of cash has decreased significantly due to Corona.”
Tutia agreed that COVID-19 has given a boost to the development of cashless trade. “Prohibition, temporary closure of establishments, people who do not leave their homes ordering food at home. […] All these aspects have pushed people towards a more widespread use of online banking and payment methods, because in these times you simply cannot spend that much cash. ”
It’s also a healthy aspect. A 2017 study in which researchers tested one dollar of notes circulating in New York concluded that “money has the potential to mediate the transmission of germs between people.” Tutia indicated that people will not touch the banknotes that have been in circulation with many hands during the coronavirus pandemic, adding:
“However, the biggest shock to users was the people who were either too reluctant or used to, too old or too accustomed to paying with cash. These new services were often forced to use a more convenient and simple payment method […] and will likely continue Most people use these services after the passage of COVID-19. ‘
“It’s easy to lose money.”