The Future Of Banknotes And Preventing A Cashless Economy
With the introduction of cloud technology, we are witnessing some new trends in all the sectors. Everything gets replaced with an efficient and easy to use services. And these new trends are now getting into the financial market as well, we see a rise in cashless transaction methods and the origin of cryptocurrencies that are eliminating the need for banking services is promoting cashless transactions in the sector. Although, the concept of cryptocurrencies is sehr junges Projekt. So what is a cashless economy and what is the future for banknotes?
A cashless economy is a type of economy in which all the transactions are verified and done through online methods without any need for fiat money. Most of the developed nations are trying to make their economy completely cashless and in Sweden, we see 59% of all the transactions are cashless. And with this trend, we might completely adopt cashless methods for payments making cash obsolete. There are several benefits as well as downsides to this process.
- A cashless economy is quite beneficial for customers and sellers as with cashless methods it is really easier to pay for anything while on the other side, this is a more efficient and time-saving process than methods involving cash. With the introduction of several new online payment platforms, it has been really easy for consumers to carry cash in their online wallets without much of a hassle. This is going to get much bigger in the future as well.
- As all these payment methods are instant, both the seller and the buyer can save more time as this tech eliminates the need for standing in queues for long periods of time. You can use these methods pretty much everywhere to pay for your bills or at food outlets. Also, as there is no cash involved it significantly lowers the risk of theft.
- With all the economy going cashless it would be really easier for the government to act against financial crimes. It would be impossible to evade taxes or to do money laundering. This will greatly reduce the crime rates related to or involving money.
- Moreover, the government could save more money as the cost of printing and maintaining cash would be zero. Also, this would promote sales as well, as people tend to avoid buying anything when they do not have cash with them.
Just like everything, there are some disadvantages to going cashless as well:
- There is a huge number of people that are not using banking services, going cashless would make it difficult for them to survive. This is why this phenomenon can not be achieved overnight.
- There are technical limitations to this as well, as there are several cases where we see downtime in server and in a cashless economy it would get really messy.
- Online security is another aspect that can not be ignored. There are a number of hackers that can easily hack into your bank account and would take all of your money. To prevent this from happening easily, everyone needs to be educated about the basics of online security which is going to be a really challenging task.
These are all the pros and cons associated with any cashless economy. There are several benefits and well as drawbacks in adopting this.