The bad move toward cashless economy

Even prior to the outbreak of coronavirus, many brick-and-mortar retailers across the country, for reasons of cost and efficiency, had been moving toward cashless operations. They had been doing this to such an extent that a number of cities and states had to ban  the practice to protect the vulnerable.

But the pandemic, and the belief that the use of cash can spread the virus, has led to a surge of businesses either refusing to accept cash or strongly discouraging its use, and this disproportionately affecting people of color. Here are the reasons why:

1. People of Color Have Less Access to Banking Services

Even the U.S. Federal Reserve admits  that people of color have less access to banking services than white people. While 84% of the latter are “fully banked,” which they define as having bank accounts and not requiring financial services outside of banks such as payday loans, only 52% of African-Americans and 63% of Hispanics are fully banked. This means that these people are far more likely to be denied service at cashless retailers.

Read more

Go Further

Australia likes cash - 09/11/2020

Why cash is needed - 07/19/2020

1 2 3 4 5

The cashless society from an ethical point of view

The debate about the move towards a cashless society has been at the center of the scene for several years, now. Various angles have been taken by economists, politicians, banking institutions and sociologists. Beyond the technicalities of the debate, lies the question of freedom, of inter-citizen solidarity and of governmental responsibility. The debate cannot remain in the hands of financial specialists, it is first and foremost an ethical, political and societal issue.

The cashless society from an ethical point of view

Newsletter subscription