What Is A Cashless Society?
A cashless society is a society where currency notes or cash money are not used in monetary transactions. It is a hypothetical move or situation in favor of alternative means of exchange. Cashless societies in the past were based on the barter system where people exchanged their livestock for food crops or other goods. However, the present concept of a cashless society or country is a completely new thing. Here cashless transactions are made with the help of digital currencies. In a truly cashless society, legal tender (money) is exchanged and recorded only in the electronic digital forms.
Potential Benefits Of A Cashless Society
Cashless economies would be helpful to the global economy. Since cash is the primary mode of transactions in money laundering and terrorism financing, a cashless society would discourage such laundering and terrorism. Central governments would also benefit from such cashless transactions as it would allow central control of money supply. It would be easier for government to monitor income tax paid by individuals and proper payment of tax would strengthen the nation’s economy. Cashless transactions would be helpful in the context of negative global inflation and quantitative easing. Going cashless would also reduce the levels of corruption prevalent in the country.
Countries Going Cashless
The most cashless societies of the world have been enlisted below. In
France, and over 90%
of consumer payments are made via cashless modes. The Canada United Kingdom, Sweden,
Australia, Netherlands, and the also have high rates of consumer
payments (80% and over) made via non-cash modes. US Germany
also use cashless payments as the major mode of consumer payments. The latter
is the only Asian country featuring in the list of the top 10 cashless
societies while no country from Africa or South Korea South America
finds a position in the list. Only time will tell if Indian citizens also favor
cashless transaction methods over cash transactions and the effects of cashless
transactions on the Indian society and economy.
US: 80 % transactions, cashless
Source : MasterCard Advisors
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