The Move Toward A Cashless Society Goes Global

OWNx Team Global Finance and Economics, News & Current Events 2 Comments

First India.  Now Australia is considering removing some banknotes from circulation. These are opening salvos toward a move to remove physical currency from circulation. Speculation abounds as to why this is the case. One of the major reasons is taxes.

If every transaction must pass through a network, then it can be calculated where it took place and the amount. The taxing authorities then would be able to automatically deduct them even if the transactions were held at a private location.

Gold and silver have long filled a role as money. In a cashless society, would the price of gold and silver rise or fall? It is too early to tell, however if history has proven anything, it is that people are innovative. If they feel the need to be able to conduct transactions outside of any closed system, they will find a means to do it.

For them, it’s not about avoiding taxes. It’s about the principle of maintaining privacy. It would be wise for our future monetary authorities to insure transaction privacy (blockchain technology anyone?). Gold and silver may then have a role as a means to stabilize a future monetary system.

The Global Move Toward a Cashless Society

 

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Comments 2

  1. Like it or not, the payments sector is evolving and is undergoing a complete change. Even if it’s still not clear how long it will take and how exactly things will evolve, it is now already pretty clear that the trend is towards a cash-free society, with all its pros and cons.

    1. OWNx Team Post
      Author

      We like the sector’s development in regards to FinTech and the possibilities that open up for people to have a choice of payment methods. Also the potential to provide payment services to millions (billions) of people left outside the system. The question of a completely cashless society however, has its potential drawbacks. As you said, nothing stopping this train. We’ll see where it goes.

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