People have experienced a rising phenomenon in cashless transactions in recent decades, as well as explicitly sold commodities and services in this fashion. Also, it has emerged after the advent of the global economic crisis that proprietary cryptocurrencies have posed some dubiousness. All these developments present the dilemma of whether or not the modern world is progressing towards a cashless society. This also creates a host of other apprehensions, such as if cashless societies have negative impacts on the financial market and whether they include what the economic regulatory bodies’ answer would be and who will be the potential winners and ultimate losers, and so on.
A rational individual always analyzes theories for and against cashless society, the prospect of cryptocurrencies, as well as possible economic policymakers’ approaches to the advent of a cashless society. People also observe that it is impossible to foresee a remarkable transition to a cashless society soon, but the obvious step in money progression may be the introduction of digital currencies in pioneer banks, at least in some major countries that seem to dominate the international economy.
A cashless society is an economic phenomenon that conducts monetary transactions in an electronic format, rather than using banknotes. Through these activities, individual will have an electronic card or software in a cashless society which will be used to carry out the transaction. The cashless transaction can consist of a Debit Card, Credit Card, Mobile Banking, internet banking, Google Wallet, Mobile Wallet, Point of Sales (POS), PayPal, Amazon Go, Payoneer, MoneyBookers, and so on. These are some of the real-world manifestations.
A cashless society might seem like something out of dystopian fiction, but people are already on their way to embrace the concept. There are many strong forces behind the transition to a cash-free nation, including government agencies and major financial service providers. Also, opponents of the conventional banking industry and currencies provided by the government tend to do away with currency with swift execution. But somehow, individuals are not following it wholeheartedly. Besides, logistical challenges, one must tackle many social concerns before having to give up altogether on cash. The following benefits and drawbacks will render an individual an impression of the multitude of cashless impacts that can have on both money and banking.