Summary
Highlights
In rural Germany, Susanna drives a mobile bank to villages that no longer have physical branches or ATMs. Many residents, particularly the elderly, struggle with digital banking and prefer cash.
Sweden is all but a cashless society, where cards or mobile phones are used for almost all transactions, from buses to flea markets. The 'Swish' mobile payment system, a joint initiative by Swedish banks, is widely used.
Lynn, a gas station owner in Sweden, prefers credit card payments due to the high cost and inconvenience of handling cash. In the US, a restauranteur found that going cashless eliminated theft and simplified operations.
Brett Scott, a former financial broker and writer, argues that cash is a public utility that lacks advocacy. He believes a world with both cash and digital payments is ideal, comparing it to having both cars and bicycles for transport.
Economic students in Germany discuss the safety of digital payment systems and the transparency of personal data. Many are concerned about data being passed on to third parties and the lack of choice in this process.
Banks incur significant costs in managing physical cash, including personnel, materials, and infrastructure. This expense, coupled with declining cash usage, drives banks to favor digital payments.
Credit card companies and online payment services earn billions through transaction fees. Kenneth Rogoff, a Harvard economist, supports reducing large-denomination cash to combat crime and tax evasion, advocating for electronic payments for larger transactions.
In 2016, India's sudden demonetization forced many citizens to adopt digital payment methods. Organizations like the 'Better Than Cash Alliance,' supported by companies like Visa and Mastercard, promote the shift from cash to digital payments for development and well-being, though critics question their neutrality and independence.
Brett Scott explains that a cashless society would mean reliance on a single form of money (bank money) instead of two (cash and bank money). This could lead to a 'financial surveillance state' and risks of cyber-security failures, exclusion of certain populations, and political repression.
The potential for a cashless society to enable total surveillance, as seen in China's social credit system, is a major concern. Sweden's central bank is exploring a digital currency to maintain control over the money supply and ensure payment system resilience in a cashless future.