Is the world destined to become a cashless society?

Is the world destined to become a cashless society?

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  Is the worlddestined to become a cashless society? The consequences of the pandemic of 2020 were quite tragic, but if we look at the brighter side, this period pushed us to develop new digital systems and progressive ideas. These digital systems included the modes of payment that we use every day now.
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  Since the coronavirushad properties of air-borne diseases, it was kind of impossible to pay cash in hand to people due to the fear of disease transmission and therefore, no contact, digital or cashless transactions became popular during this time. As a result of this, a new world was born where cashless modes of payment were preferred over physical cash exchanges. This evolution definitely moved us to think if we can become a cashless society. But wait, what is a cashless society? Have you thought about it? The cashless society Well, let us give you a picture of the same. A cashless society is one where physical money, such as coins and banknotes, is no longer used as a medium of exchange. Instead, people rely on electronic forms of payment, such as credit cards, debit cards, mobile wallets, online banking, and digital currencies. In a cashless society, cash transactions are either rare or non-existent.
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  The idea ofa cashless society is surely not new but it is definitely gaining momentum now. So, what do you think? Is it a good idea to completely eliminate physical currency from our world? Let us explore this by looking at the disadvantages and advantages of becoming a cashless society. The advantages of a cashless society One of the main advantages of a cashless society is that it reduces the risk of crime. Without tangible money to steal, criminals would have less incentive to rob banks, shops, or individuals. A study by American and German researchers found that crime in Missouri dropped by 9.8% as the state replaced cash welfare benefits with Electronic Benefit Transfer (EBT) cards (source 1). A cashless society would also make it harder for organized crime to operate, as they rely on cash transactions to avoid government scrutiny. Another benefit of a cashless society is that it lowers the transaction costs and hassles of managing currency. Businesses and individuals
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  would save timeand money by not having to handle, store, and deposit paper money. They would also avoid the risk of losing money due to theft, fraud, or human error. A cashless society would also facilitate easier currency exchange while travelling internationally, as there would be no need to carry or convert cash. A third benefit of a cashless society is that it helps prevent tax evasion and money laundering. Self-employed workers who receive cash payments can underreport their income and avoid paying taxes. This leads to a loss of revenue for the government and an unfair advantage for tax evaders. Just like in the UK, where a report states that the government lost £8bn in tax revenue due to ‘cash in hand payments’ (source 2). A cashless society would make it easier for the government to track and collect taxes from all sources of income. It would also make it harder for criminals to launder money through cash-intensive businesses or offshore accounts. The disadvantages of a cashless society
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  Despite these benefits,a cashless society also has some disadvantages. One of them is that it exposes personal information to possible data breaches and cyberattacks. Every electronic transaction leaves a digital trail that can be accessed by hackers, corporations, or governments. This raises privacy and security concerns, as sensitive data such as spending habits, location, or identity could be compromised or misused. A cashless society would also make people more vulnerable to technical issues or hacker activity that could disrupt or disable their access to money. Another drawback of a cashless society is that it creates a technological learning curve and dependency. Not everyone has the skills, devices, or internet access to use electronic payments. This could exclude some segments of the population, such as the elderly, the poor, or the rural, from participating in the economy. A cashless society would also make people more reliant on technology and less prepared for emergencies that could affect their connectivity or power supply.
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  A third drawbackof a cashless society is that it reduces the control over spending and saving. Take this report for example, “A study claims that people of the same annual income spend 34% higher while using mobile wallets than those who used other payment methods” (source 3). Without a physical reminder of how much money one has or spends, it could be easier to overspend or incur debt. A cashless society could also encourage impulse buying and consumerism, as electronic payments create a psychological distance between the buyer and the seller. Moreover, a cashless society could limit the choice and freedom of how people use their money, as they would have to comply with the rules and fees imposed by payment providers or regulators. Conclusion Now that we have listed all the benefits and drawbacks of the cashless society, can you think of how it would look if we really implemented it? Well, some countries are already putting the cashless society idea to test. Yes, it’s true. For example, Sweden is
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  on its wayto become world’s first cashless society and currently only 2% of the country’s transactions are done in cash (source 4)! The Swedish economy is surely serving a great example of a cashless society, but whether the world will follow through is debatable. On the other hand, there are technological innovations happening in many areas of finance and that is where we come! At Cogito Metaverse, we are bringing innovations to the way money and finance work. We are a virtual country run by the Principality of Cogito. We offer transaction facilities in digital currencies to all our registered residents. Our currencies can be used for the purchase and sale of goods as well as services in the Cogito Metaverse world. If the idea of a financial innovation excites you and you want to be a part of the revolutionary future of money, then you must sign up with us today! Head to Cogito Metaverse and explore a new way to secure your financial future. Sources:
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  Source 1 Source 2 Source3 Source 4