What Are The Ramifications Of A Cashless Society? - From The CoinFront

The idea of a cashless society is becoming more and more popular.

It seems simpler, more convenient, and with less risk of loss. But what effect will doing away with cash have?

Norway Wants It

According to an article in Icenews, a Scandinavian news source, Norway is well on its way to becoming a cashless society.

Finans Norge, a Norwegian confederation of over 200 financial institutions, is on board with it. They believe that doing away with cash could help prevent white-collar crime and black market activities, and make robberies more difficult.

The Norwegian people seem to be on board too. Icenews claimed that just 5% of financial transactions are done with cash, though it’s debatable how accurate these numbers are.

Sweden Wants It

Meanwhile in Sweden, even fewer transactions are done with cash, with only 3%.

In Sweden, cash is almost useless; many banks don’t process cash, most public buses don’t accept cash, and businesses who don’t accept cash are growing in number. Even churches are beginning to accept cards for tithing.

Ramifications

A cashless society does have its benefits.

It makes robbery more difficult since there is nothing physical to take. The number of bank robberies in Sweden dropped from 110 in 2008 to only 16 in 2011, largely as a result of phasing out cash.

However, cyber crimes have become more than six times more prevalent from 2000 to 2011. So it seems a cashless society will do little to deter actual crime. It will only force it to change form.

Many complain that cash is an important element in maintaining personal privacy. Essentially, people have a right to make purchases which aren’t tracked.

How can we balance the right to privacy with a transition away from the antiquated system of using coins and bills as currency?

Cryptocurrency Is The Solution

If Sweden, Norway, or any other country for that matter were to embrace cryptocurrency, the transition to a cashless society would be much quicker and less painful.

While there is still a learning curve involved in cryptocurrency, new technological improvements will make it easier. There was also a learning curve involved in the acceptance of debit technology, but today it has become the dominant form of payment in the western world.

Currently fiat currency is the undisputed king of the financial world, but could a cryptocurrency/fiat system exist where both currencies could live comfortably side by side, without one trying to supplant the other?

What Are The Ramifications Of A Cashless Society?