As the world moves further and further into the digital economy, insiders like Dan Schatt say that cash is destined to disappear. From mobile payments to cryptocurrency, cash is quickly becoming a relic of the past.
Here are ten reasons why cash will become a thing of the past:
1) Cash is expensive to manage and secure.
Cash is expensive. Every cash transaction is a real-time and real-space exchange of value, and financial institutions must pay to ensure security through armored cars and armed guards.
2) Cash is inconvenient.
Cash demands that we abstain from purchasing certain things or go out of our way to get them. As a result, it slows down transactions, forces us to make two trips to the store, and compels people to go out in unsafe locations.
3) Cash is supporting human trafficking and terrorism.
Cash transactions allow criminals, terrorists, and human traffickers to support violent extremism through their anonymity. These activities rely on unregulated black markets that thrive on cash.
4) Cash undermines privacy and data security.
Cash transactions are anonymous, meaning there is no trail. Because of this, people can purchase anything without leaving a data trail that could be used to cross-reference with customer information already in the hands of marketers and advertisers who use this information for their purposes.
5) Cash undermines fiscal policy.
Cash allows people to avoid taxes by not reporting income or moving money across borders. However, it also makes it difficult for central banks to regulate the money supply and manage interest rates and discourage people from saving money.
6) Cash is susceptible to theft and fraud.
Cash is easily stolen. Robberies involving cash make up a high percentage of all violent crimes in the United States. And because cash is anonymous, it’s often difficult to track and recover stolen funds.
7) Cash is dirty and dangerous.
Cash is a vector for disease. It contains trace amounts of cocaine and other illegal drugs and bacteria that can cause serious illness. It also puts people in danger when carrying large sums of money on their person and moving it through unsafe areas.
8) Cash is under attack from mobile and cryptocurrencies.
Many countries are already exploring the idea of bringing cash to a screeching halt or adopting private currencies like Bitcoin, Ethereum, Ripple, Monero, Litecoin, etc. Sweden has eliminated cash in many cities. For example, you can’t buy tickets to public transportation or buy food at shops.
This is a natural progression as more and more people move into an electronic, paperless world that will be cashless.
9) Cash might not exist in the future.
Many futurists have predicted what life will be like 50 years from now, one year from now, or even tomorrow. And one of the most common predictions is that cash will no longer exist.
10) Cash is becoming irrelevant in an increasingly digital world.
In a world where we can pay for our groceries, transportation, and utilities with a swipe of our phones, it’s hard to see how cash could continue to hold any relevance.
As cash becomes an even more improbable means of payment, we’ll rely on electronic payments. You might say that it’s merely a matter of time before cash disappears altogether.