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Saturday, December 4, 2021

Cashless Society – Pros and Cons

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A cashless society may seems like something out of science fiction. But it’s already on its way to making its prime position in the coming years. There are many powerful forces behind the cashless world, including some governments and large financial services companies which are ruling the world. However, so far no society has become completely cashless. In addition to the logical challenges, many social issues need to put forward in front of the common people of our society so that we can give up cash altogether.

From the Pros and Cons given below, you can get an idea that becoming digital as you know can have fictionally we will move to the next level of technology.

Higher Seigniorage

Seigniorage is the profit that Government made over issuing currency notes. Cashless money is in the form of numbers on a computer. So there is no need to print it out. As a result, the seniority is higher. It saves a lot of money for the government. These extra savings can be used to provide tax breaks to the public. Digital money is a more efficient way to manage the economy.

Higher Seigniorage

Cashless society aims to lower down the crime rate

Carrying cash in your pocket and bag make you an easy target for criminals. When criminals snatch your earned money, then this will be off-scene to find that out or to track the currency. It will be totally difficult to prove that money belongs to you. With a cashless currency, you can track the stolen amount and it will prove that this belongs to you or not.

Cashless society aims to lower down the crime rate

Electronic Paper Trails

A paper trail provides proof of transaction. That is how and where the amount is used. It will help to dry up the crime rate and make it safer to use money. Criminals and other gangs will be in the red zone while doing smuggling or any illegal transactions. Because the data is recorded and tracked everything, every time in a cashless society.

Electronic Paper Trails

Easy to Carry Around With You

Now you don’t need to count the money and keep it in your bag or pockets. Simply swipe your owned credit card or scan your cellphone. It allows you to buy whatever you want, whenever you want without having to wait at the bank before withdrawing cash and wasting time counting them. It is also convenient for retailers. They do not have to deposit much money every day. Moreover, they balance their books more easily because electronic-transfer-based sales can enter computer systems quickly and smoothly.

Easy to Carry  - Credit card - cashless society

We do have some challenges related cashless society which is Cons in another sense.

Track Spending

Cash can you alert about spending limits on themselves. In fact, when using digital currency, it is much easier for consumers to keep track of how much they are spending and reach the end of the month with a lower balance than they expected. Because they cannot see how much money is available in front of them.

Track Spending - Cons of cashless society

System Hackers can steal the Digital Payments

In a cashless society, we need to put some extra efforts and strategies into cyber-security and against hackers. We need to set up an amazing mastermind department that will track and stop hackers from robbing the cash and data. We need to hire experts for our cyber-security and to make the site more secure.

System Hackers can steal the Digital Currency

System Vulnerabilities

What if the connected system of a cashless country will destroy through a natural disaster or other means? What if it comes up as a big problem for financial services? Suddenly, customers’ ability to access their accounts block and no one pays anything, resulting in a financial shutdown. Cash needs to be kept as a reliable backup option if connectivity fails. Especially if natural disasters such as floods, earthquakes, or hurricanes destroy critical infrastructure.

System Vulnerabilities
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