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Digital payments or cash? Are you ready to live in a world without the latter?

2024-03-02 11:48:34Lifestyle SHKRUAR NGA REDAKSIA VOX

Digital payments or cash? Are you ready to live in a world without the latter?

It has been happening slowly but surely for years; digital payments are overtaking cash. Think about it: when was the last time you paid with bills and coins? Maybe you resist paying by card and regularly pay in cash, but for many people, paying by card or smartphone has become the new norm.

So are you ready to live in a cashless world? Is society ready to give up physical money?

According to data from the Pew Research Group, the number of Americans choosing to go cashless has grown tremendously in less than ten years.

41% of Americans say NONE of their purchases in an average week are paid for with cash, according to 2022 data. This is a sharp increase from 2018 when only 29% of Americans said that during an average week , they only paid by card.

As for those Americans who still want to physically touch their cold, hard cash, the Pew Research survey found that the number of Americans who primarily pay for things with cash is steadily shrinking.

In 2015, those who used cash made up 24% of the population, dropping to 18% in 2018 and 14% in 2022. However, the study notes that in 2022, 59% of Americans still said that in an average week, they still used cash for some of their purchases.

An article from the New York Times points out that central banks want to keep their money relevant, so they have started experimenting with digital versions of their currencies, similar to Bitcoin. However, the difference is that they are issued by the state and not by a private entity like Bitcoin.

Central banks hope to gradually introduce these digital currencies so that, eventually, they coexist with cash. Then, as the population becomes more comfortable with them, banks hope to phase out physical money altogether.

According to the New York Times, the Bahamas was the first country to start using the world's first official digital currency: the Sand Dollar.

The International Monetary Fund reports that Jamaica and Nigeria have also introduced Central Bank digital currency, and that over a hundred countries around the world are exploring the possibility, including China, Japan, Sweden, Great Britain, the European Central Bank, Brazil and even India.

As for the United States, the government seems a bit dubious about developing a Central Bank Digital Currency (CBCD). Quietly, in March 2022, President Biden issued an executive order directing the Office of Science and Technology Policy to prepare a report on the risks and benefits of creating a digital dollar for the United States.

According to Forbes, for now, the federal government is still weighing the pros and cons of a digital dollar. It has pilot tests and experiments in development to help establish the limits and possibilities with CBCD.

The benefits of digital currency are many. As noted by Forbes, the benefits of going cashless include ending cash-based criminal activity (say goodbye to money laundering) and without the risk of physical harm to your money.

There are many benefits for retailers (no more counting your cash at the end of the day!) and faster transaction times, which both retailers and consumers benefit from. Additionally, consumers cannot lose the digital currency as they can bill and have less risk of robbery.

But what about the risks? Do the benefits outweigh the problems with digital currency?

Risks include: Digital money can disrupt current banking systems that are in place and electronic hacking is a real risk.

Loss of privacy

Even more worrying is the loss of privacy, all transactions can be audited and tracked, and buying things anonymously would become a thing of the past.

Are you ready to give up money forever? So what do you think? Is the world ready to switch to digital currency? Would you be willing to give up money forever?


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