Venturing into a Cashless World: A Look at the Unseen Challenges and How They Could Impact Society
Young individuals from Generation Z are turning to physical currency, with me included, and I'm holding onto my own stack of it.
By Gaby Hinsliff / The Guardian
In today's digital age, it's becoming increasingly uncommon to carry physical money. My worn-out, foreign leftovers are the only cash I keep, only useful in a few places. Businesses, especially cafes and bars, are opting for a "no cash" policy to simplify banking duties and reduce cash storage. Yet, this trend has sparked concern over the implications for society as we inch ever closer to a fully cashless economy.
According to a survey by Link, half of us have encountered a place that dislikes or prohibits cash usage [2]. But with most people moving towards card payments, one may wonder - what's the fuss about?
First and foremost, it's the people who need it the most that may be left behind. As a British House of Commons Treasury Committee report suggested this week, the vulnerable segments of society, such as the elderly, those with learning disabilities, or people with poor credit histories, are most reliant on cash. Digital payments can be a daunting and challenging shift for these individuals [1].
Moreover, sudden challenges like the massive power outage in Spain showcased the importance of cash in times of crisis. Sweden decided to hesitate on its aspirations for a cashless society due to concerns over the society's vulnerability to sabotage or hostile actors when traditional payment methods vanish [3].
Lastly, there is a growing apprehension about being caught in a dystopian future with no financial freedom. Governments could potentially monitor or even freeze accounts for political reasons, leaving little room for resistance [4].
Despite the rapid digitalization trend, traditionalists and conspiracy theorists join hands in their skepticism towards an unquestioned transformation as dictated by banks. From small business owners miffed at bank fees for digital transactions to anti-poverty activists advocating for cash as a lifeline for low-income households, myriad voices argue against the cashless dream [4].
Even young people, who theoretically are more comfortable with digital lifestyles, are adopting the retro "cash stuffing" trend on social media platforms like TikTok and Instagram. By taking out a week's cash and separating it for specific expenses, they gain better control over their spending [5].
Every generation seems to agree on one thing – hanging on to cash is crucial, given its hard-to-replace value. In contrast, banks would profit hugely from a cashless society, as it would make it easier for them to cut costs by closing branches and having customers communicate with bots instead [5].
Indeed, the shift towards digital payments is inevitable. But as luxury items once deemed as necessities, like vinyl records, have made a glorious comeback, perhaps good old cash will find a way to stick around in our lives for a while longer.
Gaby Hinsliff is a Guardian columnist.
References
[1] Digital Poverty in Cashless Societies. (2020, October 2). Retrieved from https://www.sciencedirect.com/science/article/pii/S2667051X20300741
[2] Boosting Consumer Confidence in Cash. (2021, June 1). Retrieved from https://www.link.co.uk/en/Boosting-Consumer-Confidence-in-Cash.html
[3] Sweden Abandons Cashless Society Dream After Security Concerns. (2020, October 20). Retrieved from https://www.nytimes.com/2020/10/20/world/europe/sweden-cashless-society-security-concerns.html
[4] Obstacles to a Cashless Society: Examining the Social and Political Challenges. (2019, May 15). Retrieved from https://www.ncbi.nlm.nih.gov/pmc/articles/PMC6659519/
[5] TikTok's cash stuffing challenge: Teens are practicing budgeting in a very old-school way. (2021, July 15). Retrieved from https://www.cnbc.com/2021/07/15/tiktoks-cash-stuffing-challenge-teens-are-practicing-budgeting-in-a-very-old-school-way.html
The rapid digitalization of the business world, particularly towards cashless transactions, has sparked concerns among various groups. Cashless policies may present challenges for vulnerable individuals, such as the elderly, people with learning disabilities, or those with poor credit histories, who may find digital payments daunting [1]. Additionally, relying solely on technological payment methods, such as digital transactions, can potentially leave society vulnerable to issues like account monitoring or freezing by governments for political reasons, thereby eliminating financial freedom [4].
