I am in favor of the elimination of cash, and you ? what is your opinion ?
As I have to pay taxes religiously to the last euro and many other professionals are free of it because their way of working and income allows them to evade taxes, I am in favor of the elimination of cash.
The elimination of cash has been on everyone's lips for a long time, but is it feasible? Do you think cash payment has an end date?
What are the advantages and disadvantages of eliminating cash?
There is a lot of controversy here and not everyone believes that the elimination of cash is a good thing for society. Just as there are many people who believe it is a necessary step forward.
These are the most common arguments among those in favor and against the eradication of cash.
8 Advantages of eliminating cash
Reduction of speculation, fraud and money laundering.
The elimination of physical cash would bring benefits in the fight against fraud and money laundering. It would put an end to tax havens, banking transactions of dubious legality, creation of mirror companies, tax evasion...
Cost reduction
Although these are very residual, costs would be reduced. Costs of production, maintenance and management of cash.
Pandemic prevention?
This point is not clear, but it is true that the Organization of Consumers and Users (OCU), the Ministry of Industry and the European Banking Authority recommended the use of contactless payment methods during the pandemic.
Reduction of certain crimes
Certain crimes such as drug or arms trafficking would be reduced as payments would be made in cash.
New payment methods would appear
By eliminating cash, new payment methods would appear, encouraging technological innovation in the sector.
Control of monetary policy
Monetary policy could be completely controlled.
Elimination of contagion between banks and countries
In situations of banking or financial crises, the risk of contagion between banks and countries is eliminated.
End of mass withdrawals
In situations of banking panic, there would be no massive cash withdrawals, deposits would simply be transferred from one bank to another.
Drawbacks. 8 reasons not to eliminate cash
What about people's freedom?
There are many who argue that the elimination of cash would cause a reduction in freedom, a loss of privacy and in the direct control we would have with all our movements. There would be a complete financial record with all our movements throughout our lives, our consumption habits and geographic location quite accurately. Our bank would know everything about us, where we have breakfast, where we eat, where we shop, which brands we use...
Loss of decision-making capacity
Hand in hand with the previous point, we can add that we would lose the ability to decide how we want to pay at any given moment, in cash or by card.
Bankarization of the economy
Banks would have more power since they would increase their liquidity and gain bargaining power vis-à-vis customers.
Savings would be reduced
Another consequence would be the reduction of savings since we are more conscious of our spending when we do it in cash, it makes us more prudent.
Generation of new inequalities
Generation of new inequalities due to the difficulty of certain groups to use only bank cards or digital means of payment. For example older people or more vulnerable economic groups. In addition to the fact that many people are simply reluctant to pay by card.
Digital divide
Since not all territories have the correct data coverage to make digital payments operational, a digital divide would be created.
Higher costs for businesses
Many businesses consider that the commissions they have to pay for having dataphones or for allowing card payments of any amount are high. In addition, there are intermediaries; it is no longer just you, the buyer, and me, the seller. These intermediaries charge either in money or in data.
Possible increase in online crime
As all transactions are carried out telematically, we would expect an increase in online crime or an increase in the cost of preventing it.
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Bill Stankiewicz
2 years ago#33
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Zacharias 🐝 Voulgaris
4 years ago#32
In some places, I believe cash will continue to exist in some shape or form. I remember when I visited some third-world countries back in the day and saw how the people there lived. I can't imagine them suddenly becoming all high-tech and happy with handling the little money they have by using some digital device. Sure, some people might, but the majority won't. The same goes with various traditional societies like Italy, where people are very loyal to the way things are and aren't that keen on changing their ways, just because some new and sexy technology comes about. There is merit in sticking with what works, something I came to value through my travels and ex-pat experiences. Maybe in the more financially advanced countries things are going to be different (already I know of places in the Netherlands that accept only plastic). I just hope that what works for those countries isn't forced onto other countries, just because some people are attached to this way of doing business. Cheers
(Nacho) Ignacio Orna
4 years ago#31
@Javier 🐝 CR That I don't know. It is a sensitive issue, however it will bring more control and poverty.
Paul Walters
4 years ago#30
As I don't have much I don't think it will be a problem !!
Jorge Enrique A.
4 years ago#29
Eliminating cash would be such a huge mistake I hope it will never happen.
Preston 🐝 Vander Ven
4 years ago#28
The reason I do not like cash is I understand it is just a form of ‘debt with interest’. The longer I hold it, the less it is worth. The value of the US Dollar is going down so fast. Yet, if I put the Cash it into a Profilo, Cytpro, Commodities, or Real Estate, I now own something instead of debt.
Good Debt is debt that makes you money. For example, it is like a loan for a house that is rented out, and the rent covers the mortgage, and you keep the profit. Bad Debt is debt that does not make you money. The best example of bad debt is college loans. Cash is no longer based on the gold standard, it is now a form of debt, and loses its value due to inflation. Thus it is bad debt.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#27
You are right @Zacharias 🐝 Voulgaris , it should be like that and no payment method should exclude the other, it was simply to discuss the advantages of one method of payment or the other :-)
And do you think that cash will continue to exist as a method of payment as digitalisation progresses over the next few generations or do you think it will disappear?
Zacharias 🐝 Voulgaris
4 years ago#26
I agree with @Lada 🏡 Prkic. Why does it have to be one or the other? I use cards quite a bit (especially at the grocery store) for the convenience this offers. However, there are cases when a POS isn't working or a venue prefers cash, so it's good to have that option too. Just like the motorbike didn't make bicycles obsolete, there is room for both plastic money and cash in today's society. Cheers
Joyce 🐝 Bowen Brand Ambassador @ beBee
4 years ago#25
I use the system very sparingly. I use mostly barter now. Much less tracking.
Lada 🏡 Prkic
4 years ago#24
Javier, I spend much more using credit cards or payment apps than if I were paying in cash. It is easier to spend money when you don't see physical cash leaving your hands. That's why credit cards were invented. :)
I am not in favour of total eliminating cash and having no alternatives. I'm more for less cash society.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#23
@(Nacho) Ignacio Orna That is absolutely true, but what do we do with professionals who earn money in cash and do not pay taxes?
(Nacho) Ignacio Orna
4 years ago#22
I am against the elimination of cash because eliminating cash eliminates freedom.
Fay Vietmeier
4 years ago#21
@Javier 🐝 CR
As to ..
eliminating cash .. my “Gone with the wind” answer
“Frankly my dear - I don't give a dam”
Those who control the money system - will do what they want to do.
Greed will have her way - she always does
There seems no foundation of reality in in the financial systems so who knows what will unfold?
Perhaps ..
A return to barter?
.. I'll bake you bread
.. if you'll plow my fields
A bottle of wine for a chicken?
Well said: Javier and so true - everywhere on the planet
It's the whale that bites its own tail: if you have money they lend you, if you don't have money they don't lend you, so if you have money what do you want them for, and if you don't have money what are they good for?
Francisco Lopez
4 years ago#20
I rarely use cash but I do not favor its elimination, as it helps to live out of the grid.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#19
That's right @Jim Murray . Every time you store in a store, the bank keeps a percentage of the sale, especially high commission in the case of American Express in Europe, that's why most use Visa or Mastercard.
It's the whale that bites its own tail: if you have money they lend you, if you don't have money they don't lend you, so if you have money what do you want them for, and if you don't have money what are they good for? fuck them all! 🤣
Jim Murray
4 years ago#18
We have not really used cash for the past two years. It just pisses me off that every time you use your bank card for a purchase, the bank gets a percentage that comes from the retailer's side. For small purchases it wiped out their margins.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#17
thank you @Lada 🏡 Prkic for telling us about the situation of the use of cash in Croatia, and are you in favor of keeping this method of payment or do you think it will disappear?
Lada 🏡 Prkic
4 years ago#16
I always carry some cash. When I go for a coffee with my friends, we always pay in cash (including tips). On weekends, when I go to the green market, I pay in cash because it is the only means of payment. Besides, you can always bargain with vendors for slightly lower prices. :)
Also, the number of private medical and dental practitioners charge for services in cash only. In Croatia, we still use cash, although much less than before.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#15
Another reason why I am in favour of eliminating cash is because there are many people who ask for subsidies or aid from the state or local administrations, having incomes in the black, and they are granted, causing a prejudice to the rest of the people who pay taxes. There is a huge black economy in black money.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#14
@Francisco Lopez @Fay Vietmeier thank you for your contribution to this text, but are you in favor of eliminating this payment method for good? 😊
Javier Cámara-Rica 🐝🇪🇸
4 years ago#13
Thank you very much @Ken Boddie for your information. In Spain covid has also accelerated the user of online payments with physical card, virtual card or phone. Many people still pay in bars with cash (which I do not understand because I pay with the phone), but above all, what bothers me is that certain trades have a lot of cash income, which then do not declare and therefore get rid of paying taxes, and the rest of us who always enter money online because we have no choice but to pay these taxes. In a trip I have recently made in Germany is the same as in Spain, everything is paid online in general. When I say to make cash disappear, is to remove it as a means of payment, so that no one evades taxes, because many of us work hard to get it and others too but you get a silly face when they can evade taxes.
Ken Boddie
4 years ago#12
I can’t remember the last time I used cash here in Oz, Javier. We have become a virtual cashless society, with most people paying by tapping their smart phones on the card reader at the checkout, thus connecting through to a chosen debit or credit card. This works across retail, supermarkets, government departments, public transport, even at small street market stalls. The phone transaction is activated by fingerprint or eye recognition. No doubt Big Brother sees all, but the benefits are many, including instant access to transaction details and excellent online management via various bank provided software. The only people who appear to suffer from an absence of cash here are buskers and the odd beggar down on their luck. Apart from this I would say there is little ‘digital divide‘ here and that COVID has precipitated the death knell of cash and the reinforcement of digital transactions. I’d even go as far to say that the odd person paying by cash here is given quizzical looks by others in the queue behind then at checkouts, because cash transactions are so slow compared to digital.
I remember being amazed when visiting Japan 4 years ago. For such a techno crazy country I found it quite paradoxical (even comical) that they had, back then, a predominant reliance on cash, with very few retail outlets offering card transaction capability.
Francisco Lopez
4 years ago#11
Very little of the money currently circulating is cash, less than 7%. Most money is created when banks lend money. Central banks reduce the amount of money in circulation by selling debt obligation from their governments. The effect of money circulating depends on the velocity of money (how fast it changes hands). Interest rates (the cost of money) can modify economic activity, therefore consumption, employment, inflation.
Fay Vietmeier
4 years ago#10
@Javier 🐝 CR
Interesting subject Javier ..
Regardless of the form of currency .. I made to wonder if the fiscal irresponsibility that exists in every nation will change?
Global debt approaches 300 TRILLION
No one talks about fiscal responsibility .. balancing national debts
Personal fiscal responsibility is being corrupted from the top down
The endless printing of money in whatever form (USD or Euro’s – or whatever) is pure unreality
This I can say with assurance:
Greed will find its way & have its way .. whatever form of currency unfolds.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#9
Some more few comments on LI
Javier Cámara-Rica 🐝🇪🇸
4 years ago#8
@Renée 🐝 Cormier Surely if cash runs out they would implement a way to give money online, have no doubt about it! By making cashless there would be new apps and new lines of business.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#7
@Jerry Fletcher You are right ... most of the world could not implement it but some countries could.
Jerry Fletcher
4 years ago#6
Javier, I'm reminded of conversation with a CRM specialist who could not understand why I wanted a printable paper calendar in the app. I told him to open up a cell phone coverage map of the United States and note how much of it had no coverage. Digital solutions require the infrastructure to support them. You may be comfortable with that in Europe but there are parts of the world that have no infrastructure. Money is still of use there and among those in the urban areas that have no access.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#5
@Renée 🐝 Cormier That's right, I never carry cash either. Banking in Europe is much more developed than in the United States. The point is that many trades like electricians, bricklayers, lawyers, doctors, etc. ask to be paid in cash to avoid taxes.
Javier Cámara-Rica 🐝🇪🇸
4 years ago#4
thanks Bill , surely you earn and pay without cash, but there are many trades that still have cash income to evade taxation
Javier Cámara-Rica 🐝🇪🇸
4 years ago#3
I agree 100% @John Prpich , and why do you think no country takes the step if technologically it is already feasible at least where there is internet coverage ?
John Prpich
4 years ago#2
There is on very simple reason to let go of cash, it makes it difficult to launder money and criminals can't hide behind it, they will be tracked. As the saying goes, you can run, but you can't hide.
Bill Stankiewicz
4 years ago#1
@Javier 🐝 CR , I have not used cash over the last 15 years. Today I am back to Teaching today’s And tomorrows leaders in Savannah Georgia with Bill Stankiewicz