What does a cashless future mean? | The Economist

What does a cashless future mean? | The Economist

Somewhere in the near future… …physical money will become like these Relics of a different age And will only be found in places like this In other words… …hard cash will disappear It will become electronic… …transferred by things like these So what’s the rush to get rid of cash? And what’s the cost? Let’s face it money is cumbersome for consumers… …and banksYou need to mint the cash, you need to print the bills……you need to transport them in armoured trucks….…store it in very secure vaults……and you need to sort it at the till as wellOperating in cash costs countries about 0.5% of their GDP every year But cost isn’t the only incentive to move towards a cashless futureDemand is risingPrimarily demand from the young generations……who are looking for fast, easy-to-use means of paymentsDigital payments aren’t just easy… …they are neatIt becomes easier for governments to monitor……tax evasion and fraudSo we will have less of that going on, probablyHaving every single payment automatically recorded is efficient But there’s a downsideLet’s assume for example that a country that used to be democratic……where people were not paying too much attention……about safeguarding their privacy, becomes undemocratic……and someone wants to control citizens more closelyThey will try to infer from what you buy……your political leanings potentiallyAnd generally speaking just monitor what you’re doing……in ways that they shouldn’t be doingThe ballot boxes are kept locked and sealed…Living in a democratic country doesn’t mean you shouldn’t be concernedThere are also worries that private companies perhaps……might use this data in ways that are……not safe or that you might not likeAnd for a number of sectors……knowing what you do with your money is very importantElectronic-money trails can allow governments and private companies… …to access and harvest personal data But there’s another threat that is worrying banks… …cyber-attacksIt was a high-tech bank robberyCapital One suffering a massive hack-attack involving……a hundred million Capital One customer’s accounts……had their personal information stolenIn March 2019 Capital One bank was hackedA solo hacker managed to steal away……106 million people’s personal details……in a matter of daysAnd that attack was noticed just a few months afterYou can see that a lot of companies are not very well protected yet……against such threatsPretty much every day we hear of data breaches……cyber-attacks that are successfulIt’s much harder to prevent an attack than to……be on the hacker side because……you only need to succeed once as a hackerOnce upon a time you would have two guys coming in……they would tell everyone to be on the floor……put the money in the bag and then run away with the moneyAnd you would get insurance against thatYou knew what the risk wasNowadays with cyber-attacks……they can happen any time, they can take any formSo it’s very hard to insure againstStill many countries are fast moving towards a cashless society In Sweden the number of retail cash transactions per person… …has fallen by 80% in the past ten years The trend is even evident in far more cash-loyal societies China’s digital payments rose from 4% of all payments in 2012… …to 34% in 2017 The trend is inevitable but a gradual transition is keyIt’s important that we have a sort of control as to how fast this happensBecause if that’s not the case, some people might be left behindSome people may find it harder to grasp how much money they have… …without the physical representation of it Not everyone knows how to use internet-banking technology And people living in remote areas where internet cover is patchy… …may find they have to drive for miles for their basic needs And there is another sector of society that relies heavily on cashPeople living on the street don’t carry card terminals with themSo it would be very hard for them……well first of all to collect money and to pay for thingsThey will be among the people who suffer the most from itGoing cashless is just the latest evolution of money in the modern economy But it raises a fundamental question… …what is the value of money if it doesn’t physically exist?Central banks enact monetary policy……by exerting control over the amount of money……that is created and that is in circulationAnd they can do it because……they are the only entities that print and create moneyThe purpose of it is to control the amount of money……that is used by the entire economyIn a cashless society obviously this becomes much harder because……money presumably can be created by other entitiesAnd so central banks are actually starting to realise thisEspecially after Facebook made the announcement……that they were looking to launch a digital currencyIt shows you the extent to which central banks are already thinking……about the future of moneyThe move towards cashless societies is well under way But governments need to ensure that, as cash is phased out… …the vulnerable in society aren’t left behind They need to navigate carefully… …the many pitfalls that a digital economy will bring

100 thoughts on “What does a cashless future mean? | The Economist

  1. Then we should have a homeless tax which funds services. Public doesn’t have to deal with “ShouldvI give this person cash…Awkward! Avoid, avoid, avoid!” and let services deal with.

  2. They would love this so that their negative interest rates could more effectively steal from people. You couldn't even hold money in cash in a safe of your own. You have to spend it from a bank account they siphon money out of regularly.

  3. It means when the economy goes down we can’t pull our money out because digital money is digital they gonna control us

  4. cashless society means: (1) loss of electricity will always mean complete breakdown of the payment system, (2) total dependency on bank fees, (3) in case of hyperinflation, the state can shut down all escape routes, (4) increased data privacy/security risks

  5. Translation: "we can't exactly control 7 billion of you guys as it stands today and we need a better way to enforce our authority."

  6. And you forgot to mention that banks can have negative interest rates (where you pay the bank a percentage for holding your money) because no one will be able to take their money out.

  7. I think it is rather subversive to suggest that a cashless society is inevitable, as if telling us to accept it as fact. There will be strong resistance.

  8. A government being aware of the nature of every financial transaction is a great way to destroy basic privacy.

  9. Actually one of the problems with such moves., which scares me is ……now …govt. or Banks …..have nothing to worry….suppose your pension or saving is in the bank….and usually local bank…invest further or lend money on those from central banks ….and most of the time they play dirty or invest in risky business for high and fast return..(how banks work all around the globe),,,,,, therefore they screw everybody…..this is very risky,(because of the votality of global economy)…,,,, and if they fucked up..then what is the creditability we have over them…..besides …bcoz of their size and impact on the global economy….they have to be saved or bail out….,….again with our taxes……this is what we called smart business,,,, with no risk involved(they even donot jail these people; best example is RBS, the main banker has even its pansion)…..you already saw that happening,,,,,,, such as ("german bank lending money at negative intrest;;;in order to survive;;;;;;;german bank further.lending toxic assets…to American banks")……..now they are predicting that global slowdown is near around 2020 -2021, ,,it is common sense….that banks need to be more responsible when they invest….but we donot have any control over it……,,,,,, problem now is that ……usually these toxic assets are scattered(disperse) all around the globe………. Some economies are doing well over the other so through that their impact can be minimized…through their flow……..and it usually minimizes their impact over one economy …and market has time to recover,,,,, but when their size is so large and they accumulated at one place ……cash flow and their movement is very difficult,…….which is bad news…..best example was …..iceland….in 2009….due to mortgage bubble in USA………..in the end,,,,,i am not an economist or an expert……….i can be right or wrong……but we don't have any control over our money ……and why doing this they (on the name of our convenience,,, manipulating through advertising….creating a demand…then they sell but ever nonsense they want)…………. screw us …….now it is basically bench of number…..American.banks can print as much as they want (remember zimbabwe )….and can manipulate global market as they please,…….through inflation….and dollar being central currency….they can print as much they want………until it is too late and further expansion or flow is not possible///(problem is that because of the size, we have to face the consequence on the other hand when they make money….then its ok)///,,,,,, and instead of making decentralized one currency (dollar ) or doing trade in gold……these banks fuck us all……..(Thanks to US-China trade war, two large world large economies and our genius…..economist …Trump)……..we all are gono fucked up……………………………All BAnk needs to be centralized(above a certain size)…..people are dum…..instead of trying to centralize google or facebook(even though, it is a good move …)…….bank centralization and accountability….need to run by govt, not by representative,,,,, should be higher priority………..so that banks have more accountability towards the people/

  10. I'm really tired of hearing this propaganda these days. Look, not all people are clueless enough to believe whatever you've got to say. Cashless is NOT inevitable. Be prepared to face resistance from MANY!

  11. Japan and Germany are the only 2 countries I know that rely on cash.

    Also gold,silver and precious metal might make a comeback.

    And with crypto there are new ways to escape tyranny

  12. Cash is King. Without physical cash, it becomes that much easier to control everyone – a loss of freedom. People lose track of how much they spend without physical cash. Using credit/debit cards and phone apps as payments: you have to understand what is being done to you in that sense.

    Cash is motivational. I like to see my earnings in that way. Cash tips are motivational to workers.

    Don’t carry large amounts of it, though.

  13. This is basically present in China: You can use wechat pay or Alipay to purchase anything, even from a street food vendor. People already save most of their money in the bank and using the credit card for decades. Even the currency you are using is defined and printed by the government. I agree that storing some cash is a good idea in case of emergency. But unless you want to go back to 15 centuries and start to use gold or silver coins, I don't see the reason for fearing a cashless society.

  14. Beware: the Economist promotes a “Rothschild” and “Council of Foreign Relations” point of view/agenda!!!

  15. If you’re afraid of it then let China go first. At the end either China failed or everyone is paying IP tax to China.

  16. there are still amount of people who can’t afford a screen-touch mobile phone and the phone bill to pay on-the-go! And there are people who don’t have a bank account, too! However, we may save trees by online books and papers.

  17. Let's not forget if there's no cash and interest rates go negative, we'll have nowhere to hide. The premises of this would be to be able to force people to spend their money or lose it.

  18. Come to China and get a mobile phone and apply for a wechat or alipay account then you will know exactly what does cashless future mean

  19. The end of the monetary system is the end of freedom. There will be no living off the grid. It cannot be allowed to happen.

  20. Mean you can lose the whole life saving. By Hacker click. Or disruption in communication would be enough for you to be starving. Unable to buy anything
    I, myself prefer this current system than cashless society. I don't want to hang all my life over 0 and 1.

  21. Wake up People this is the Evil New World Order Aka The Mark of the BEAST code number the 666.Prepare for Precious Metals and Self Reliant in Order we Practically Apply the Barter System Protect One ☝️ Self from taking up the Biometric System Chip in our Physical Human Body will come in reality in the Not so Far Future. Wake Up and PREP.

  22. What is the value of money if it doesn't exist? It's worthless, has been since it ceased being backed by scarce resources such as gold

  23. What is the value of money if it doesn't exist? It's worthless, has been since it ceased being backed by scarce resources such as gold

  24. A cashless society will mean that you cannot hide your money and any stupid scammer is able to arrest your bank account with help of false claims and then you will be taking your money back for ages. Think about it.

  25. Interesting video from the economist, an organisation owned by Rothschild interests 🤔. Even more interestingly, they fail to mention one of the main motivations for removing cash – negative interest rates. Negative rates do not work if you can withdraw your money from the bank. This was realised in practice in Japan.

    This is NOT a natural evolution as this video says. They, BIS, IMF and central banks want people stuck in the banking system. The prospect of a cashless society is a direct attack on personal freedom on a global scale. The link between cashless societies and negative interest rates is clearly detailed in papers from the BIS and IMF. It is unnerving and suspicious that it is not discussed in MSM coverage of this issue.

  26. Did the video touch upon how some cash businesses are used to launder money? If every transaction can accounted for, would that not make it very difficult for some criminals to account for their money making it difficult to launder and thereby easier to convict more criminals?

  27. Ahahah….And you thought it was your money. …
    Say good bye to going without and saving for a rainy day. ..
    Just wait till the government tells you what you can and cant spend "Your" money on.
    Another personal freedom gone….

  28. This stupid economist says cumbersome, it might be but it keeps thousands of people in work and puts food on their table. Will machines be able to do this. It's all big brother and the economists accent is poor.

  29. The real big damage for the society comes from the people who use vulnerabilities in our systems to enriche themselves. Like cum-ex or tax „optimization“.

  30. Crazy vision, one manufacturer of phones decide to hack every single phone they've made, all transactions have no protection because if the money is in your account but you're not controlling your account. A faceless organization does, what will happen?
    If this happens to the Bank, there are insurance, they provide a service, if you do it on your own, what will be insured? Nothing.

  31. Whats the danger for u to share your data about ur grocery shopping, holidays, restaurants spending? For 99 percent of the people, this data will not put your personal life under danger.

  32. in china homeless people have a qr where people can scan and sand money
    and btw, the data is so old, in china aroud 90% of the payments are cashless, and what about wechat pay and alipay?

  33. Looking at how the political spectrum is leaning nowadays all over the world..a cyber attack that leads to a total revolution is our only shot ar happiness.

  34. Now Google (and other third parties) will know how much my money, what, when, and where i spend it etc. People these days are so naive, will trade convenience for risks, novelties for reliability.

  35. He said it will be easier for governments to control money laundering and fraud… I think he meant it will be easier for the Kings and Queens who control the Federal Reserve to control YOU.

  36. China has been cashless for few years . In China we only need take one phone to buy anything by wechat pay and alipay . It's so convenient to people .No need take money it can reduce the thief crimes .

  37. But it would be easier for your money to disappear since. High intellect can rob anyone’s Deposit on the computer. Meaning one’s wealth will be manipulated at anytime. US DOLLAR and coin IS MARKED with “IN GOD WE TRUST”.
    *. Let’s us get back to the olden days. The Tower of Babel. Men were dispersed to put a stop to high ambitious desire of mankind to reach Heaven in their own way but not in GOD’s WAY. Beware of evil. And mankind were once again given the opportunity to know GOD.

  38. "Less tax evasion and fraud… Probably." Lol the rich and powerful that are leading us to cashless will always find a way to evade their own rules.

  39. Why is this agenda pushed so hard by the mind controlling propaganda-media? Nobody wants a cashless society but you still get this crap forcefed down our throats every day by these bought and paid for propaganda outlets.

  40. Revelations 13 v 16 – 17: "And he causeth all, both small and great, rich and poor, free and bond, to receive a mark in their right hand, or in their foreheads:
    17 And that no man might buy or sell, save he that had the mark, or the name of the beast, or the number of his name."

  41. Why money was created at first place?
    Those who know it won’t have a problem if his electronic cash can track back to the value(against e-cash) on ground.
    Economist not talking about that value is such a conspiracy theory for those who understand 🙄

  42. it means they can freeze your account and money to control your life or push you to sign documents or agreements which you do not agree with, it can be a way of punishment for the average decent citizens.

  43. This is dangerous. Imagine what authoritarians can do with all this power. And then think about the populist forces rising in virtually all states. It is not worth the risks.

  44. Bitcoin was created in 2009 for this exact purpose. A privacy focus with a finite supply that cannot be inflated away by central banks. Just so happens that it's now evolved to be one of the most secure databases on the planet.

  45. 4:18 why does it even raise a question? I thought money had never physically existed since day one, cash is physical but it is just a manifestation of money, so are books, it is physical but information inside is not. My personal grasp about money is like this, cash is like books and papers. Money is the information that is written on it.

  46. This video is very lacking. It speaks on information known for over 3-5 years. I was expecting to hear what role central banks will play in the future, and the costs of using physical cash compared to the costs of protecting digital currencies. So much new ideas to be discussed yet missed.

  47. I signed up for free Amazon Prime and I didn't cancel when the one month expired because I didn't receive a notification, so what happened was that I got charged $13 automatically.

  48. I embrace technology and cashless transaction, but I prefer physical money to avoid bureaucratic taxes and be able to do anonymous purchases off the books. Because in a hypothetical future where government can take away our money or ban us from purchasing, earning, and receive money just because we have different a political opinion, digital money is controlled by the government. They make it. They can take it.

  49. Governments don't look after the vulnerable l, they capitalise on them so the move to cashless is great for the elite

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