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The debate

Cashless' downsides hurt - 07/31/2020

1. 1. It Takes a Chunk Out of Small Businesses' Profits When you pay with a credit card or a digital platform, it costs retailers money in the form of third-party fees. At a time when many small businesses are struggling to stay afloat, these fees can really add up. 2. 2. Not Everyone Has Access to Electronic Payments Vulnerable populations — including low-income earners, retirees, some immigrants and people with disabilities — “have little or no access to electronic payments and are increasingly shut out as banks cut back on ATMs and customer service,” The New York Times reported. This...

Old Americans are victims of COVID-19 and the cashless lobbying - 07/29/2020

A cashless society could be what consumer life after the COVID-19 pandemic looks like, but older Americans may find it hard to adjust to this new reality, according to Plamen Nikolov, assistant professor of economics at Binghamton University, State University of New York. COVID-19 may persist on money for a more extended period than cardboard or paper-based products because cash in the U.S. is composed of 25% linen and 75% cotton, not paper. Although not using cash might help to stop the spread of disease, it also comes with many trade-offs. One of these trade-offs relates to older...

Banknotes are not spreading COVID-19 - 07/24/2020

Mumbai: India’s heavy demand for cash--nearly 94% of transactions were made out in cash as per a recent survey--is unlikely to have significant implications for the spread of COVID-19 in the country. This is because there is, at best, a weak correlation between the amount of paper currency in circulation per individual and the virus’ transmission rates across countries, showed an analysis of recent global data. On March 16, 2020, in the week leading to the lockdown, the Reserve Bank of India had suggested increased use of cashless payment methods to curb the spread of the virus....

The numerous drawbacks of cashless society - 07/23/2020

You may have seen the Facebook (see bottom of post) post going around on social media that went viral about the fears of a cashless society. Many are posting that this post was a rant from the personal finance guru Dave Ramsey, however Ramsey is not taking credit for the post. At first thought, a cashless society may sound like a good idea. No more having to carry around paper money or coins, you’re less likely to lose your cash or even less-likely to get robbed, right? And for most of us, we may have already started moving in that direction without even realizing it. Think about how much...

When cashless leads to jobless - 07/21/2020

  Security services company G4S (LON:GFS) saw its shares rally by around 10% on Monday morning, as the company announced that first half trading had far exceeded expectations. Despite this, the company announced it would cut 1,150 jobs from its cash-handling operations. The move comes as the company adjusts its strategy to new consumer behaviours amid the the Coronavirus pandemic, where physical cash transactions lost significant ground to virtual payments. As a result, the company noted that customer needs had changed during the period, and decided to undergo a full review of its...

Why cash is needed - 07/19/2020

Almost everywhere you go now, stores and restaurants are displaying signs that read something along the lines of not being able to give change due to a nation-wide coin shortage. On June 11, the Federal Reserve issued a statement announcing coin rationing would begin June 15 because of measures they are placing to protect their employees during the COVID-19 pandemic. The announcement stated: “Consequently, effective Monday, June 15, Reserve Banks and Federal Reserve coin distribution locations began allocating coin inventories. To ensure a fair and equitable distribution of existing coin...

Asia still likes cash - 07/17/2020

DESPITE the increase in online payment transactions due to the pandemic, experts from the Asian Development Bank (ADB) said the world can’t discount cash yet. In an Asian Development Blog, ADB North America Office Representative Bart Édes and Former Senior Editor Alastair Dingwall said cash is deeply embedded in day-to-day life in many countries, making it an important tool in local economies. Édes and Dingwall also said many electronic platforms are not covered by banking regulations or insured by institutions such as the Federal Deposit Insurance Corp. in the US. “Cash is deeply...

Why jumping to a cashless society is wrong - 07/08/2020

The downsides of a rapid shift to digital payments are well known—the elderly, poor, and people with handicaps can be especially unprepared. Black Americans are less likely to have bank accounts than other groups in the US, and the same is true for poor people in Europe, according to a report published today by the Bank for International Settlements. Small businesses tend to bear the highest costs for card payments, and BIS data show that cash transactions remain cheaper to process for merchants. “There is still a long way to go in terms of increasing access, reducing costs, and making the...

When cashless means overspending - 07/07/2020

Negatives include security concerns, Willoughby said. He said many people may be concerned about cybersecurity. He also said people should be wary of overspending. "There's been some research done that people paying cash less generally pay 12 to 18 per cent more than they would when paying with cash," Willoughby said. "In essence, when money is abstract it's easy to lose track of it." Willoughby said stores can choose to stop accepting cash completely, but he doesn't recommend it. "The Bank of Canada in the past few months has encouraged sellers to provide that cash opportunity...

When going cashless puts lives at stake - 07/03/2020

With coronavirus cases on the rise yet again, I knew it was only a matter of time before the sign appeared on the door of my favorite coffee shop. “PLEASE NO CASH PAYMENT AT THIS TIME. CREDIT CARD AND CONTACTLESS PAYMENT ONLY.” None of the baristas want to handle wads of potentially contagious dollar bills that customers pull from their pockets, especially with some counties halting or reversing their reopening plans and officials from other counties openly worrying that California is starting to lose the battle against COVID-19. Early on, in fact, Gov. Gavin Newsom’s administration...
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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









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