Javier ๐Ÿ CR

1 year ago ยท 2 min. reading time ยท ~10 ยท

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I am in favor of the elimination of cash, and you ? what is your opinion ?

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
ย 

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-ร -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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Comments

Zacharias ๐Ÿ Voulgaris

10 months ago #36

(Nacho) Ignacio Orna

11 months ago #35

Paul Walters

1 year ago #34

As I don't have much I don't think it will be a problem !!

Jorge Enrique A.

1 year ago #33

Eliminating cash would be such a huge mistake I hope it will never happen.

The reason I do not like cash is I understand it is just a form of โ€˜debt with interestโ€™. 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 ๐Ÿ CR

1 year ago #31

I agree with @Lada ๐Ÿก 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

I use the system very sparingly.  I use mostly barter now.  Much less tracking.  

Carlos Tรญscar

1 year ago #28

There are countries where eliminating cash is simply not feasible (in less developed economiesโ€ฆ), others on the other hand, have stopped using it for a long time (like in Scandinavia). So, as in everything, the reply to this debate for me would be, it depends. Depends on the general situation of each country and its economy/society. 

Lada ๐Ÿก Prkic

1 year ago #27

I rarely use cash but I don't think it should be eliminated. There are those where cash is their only means of income. True, there are those that earn money in cash and don't pay taxes but there are also those that earn money in ways other than cash and still don't pay taxes. 

Javier ๐Ÿ CR

1 year ago #25

(Nacho) Ignacio Orna

1 year ago #24

I am against the elimination of cash because eliminating cash eliminates freedom.

Fay Vietmeier

1 year ago #23

Francisco Lopez

1 year ago #22

Javier ๐Ÿ CR

1 year ago #21

Jim Murray

1 year ago #20

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 ๐Ÿ CR

1 year ago #19

Lada ๐Ÿก Prkic

1 year ago #18

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 ๐Ÿ CR

1 year ago #17

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 ๐Ÿ CR

1 year ago #16

 @Francisco Lopez @Fay Vietmeier  thank you for your contribution to this text, but are you in favor of eliminating this payment method for good? ๐Ÿ˜Š

Javier ๐Ÿ CR

1 year ago #15

Ken Boddie

1 year ago #14

I canโ€™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 โ€˜digital divideโ€˜ here and that COVID has precipitated the death knell of cash and the reinforcement of digital transactions. Iโ€™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

1 year ago #13

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

1 year ago #12

@Javier ๐Ÿ 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 Euroโ€™s โ€“ 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 ๐Ÿ CR

1 year ago #11

Some more few comments on LI

Javier ๐Ÿ CR

1 year ago #10

Javier ๐Ÿ CR

1 year ago #9

Jerry Fletcher

1 year ago #8

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 ๐Ÿ CR

1 year ago #6

Criminals are already hiding behind block chain and crypto currency. Banks and credit card companies already know everything we do, not to mention what our cell phones disclose about our lives. Cash is already mostly non existent in our lives. At least that's the way things work in Canada. Our banks are very sophisticated. In the US, not so much. Don't know about Europe. I rarely have any cash or coin on me.

Javier ๐Ÿ CR

1 year ago #4

Javier ๐Ÿ CR

1 year ago #3

John Prpich

1 year 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

1 year ago #1

@Javier ๐Ÿ CR , I have not used cash over the last 15 years.  Today I am back to Teaching todayโ€™s And tomorrows leaders in Savannah Georgia with Bill Stankiewicz

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