Running Head: ADVANTAGES AND DISADVANTAGES OF CASHLESS SYSTEM 1

ADVANTAGES AND DISADVANTAGES OF CASHLESS SOCIETY.

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ADVANTAGES AND DISADVANTAGES OF CASHLESS SOCIETY. 2

ADVANTAGES OF A CASHLESS SOCIETY

The cashless society has been of great significance to the government system. First, crime

occurrence has been reduced. Money registers has been the part of many ferocious crimes. Money

places bankers and shopkeepers at risk of robberies. Presently, a store can hire a professional pro-

tector to transport money in a harmless manner. According to Alena (2021), money is substituted,

both the company and the customer will save money. Second, there would be less tax avoidance.

The topic of tax avoidance is a major issue for policymakers. Independent employees, such as con-

structors, choose to be paid in currency and, as a result, report less revenue than they actually

earned. As a result, the government loses revenue duty revenue. Cashless culture would make it

simple for the government to notice and prosecute duty elusion. Last but not least, cashless society

has made it difficult for planned crime. Cash transactions are important to organized crime because

they allow them to circumvent government security. Criminals would face difficulties if stores

stopped taking cash so they would have to declare cash.

Individuals too are not left out on the benefits of cashless society; they have the advantage of

Virus transmission and hygiene. The spread of COVID-19, businesses have prohibited money pay-

ments or actively promoted e-payments. Many believe the virus survives on paper money and coins

up to 48 hours, making them potential course of virus spread (Alena, 2021). Paying with a credit

card minimizes the risk of spread through this path. Secondly, business transactions are completed

more quickly. Thirdly, spare change has been reduced. Since customers seldom have exact cash,

you may be left with coins that would be hard to use. The fourth advantage is reduced corporate ac-

quisition expenses. In certain ways, a company that only takes credit cards would have lower pro-

cessing costs. It takes less time to count money and give cash at bank. Lastly there is elimination of

inaccuracy associated with numbering or dealing with easily forged notes since there are no circu-

lating notes hence one may not get into contact with a forged note bringing it to individual benefit.
ADVANTAGES AND DISADVANTAGES OF CASHLESS SOCIETY. 3

DISADVANTAGES OF A CASHLESS SOCIETY

Individuals have disadvantages on the cashless society based on: it is difficult for those who

do not have a bank account. If stores only allow cashless payments, people without bank accounts

would have a tough time paying Secondly, people with bad debts background might be denied ac-

cess to credit card. Thirdly the individual has no right right to privacy. For example, China is pio-

neering the transition to a cashless society (Taskinsoy, 2020). The government is currently in the

process of developing a digital government currency. Main aim for the government is to provide ac-

cess to data on all individuals, companies, and organizations.

The fourth disadvantage is that cash aids in the control of spending. People who are prone to

incurring debt can deliberately reduce their credits and restrict them to cash payments. Explanation

for this is using credit card allows you to use cash without looking like you are going overboard. No

psychological impediment in purchasing plastic. According to Kim (2021), paying in cash, though,

you may have a stronger emotional commitment towards your money, making you aware of the

cash you spend. Parting with money will aid you avoid impulsive buying. Costs in business is the

other disadvantage to business owners, while cashless payments have a benefit, businesses still rely

on banks and credit card providers, which have a certain fee aimed at account processing. Busi-

nesses are losing ground to card firms, who would gain market share in the absence of currency.

The other disadvantage is choosing liberty. There is a significant distinction between of the

use of electronic payments and making them mandatory. As businesses fail to accept cash, they are

effectively discriminating against those who have no accounts. According to Nageshwaran & Harris

(2021), people may choose to generate payment in cash for a variety of reasons. It's difficult to go

there. According to Ryandono & Gurtino (2021), money's emotional worth. Having five pounds de-

posited into savings account would not have the same monetary worth. Donating money in cash for

charity purposes rather than a money transfer to account has a psychological meaning you feel

linked to the hand of donation

Cashless society has also imposed various disadvantages to the government; for example,

Kingdom of Sweden made preparations of transition to a moneyless culture but discovered certain
ADVANTAGES AND DISADVANTAGES OF CASHLESS SOCIETY. 4

groups were falling behind schedule; hence, they decided to 'slow down’ (Nageshwaran & Harris

2021). One crucial point to remember is that after the cash system has vanished, it is difficult to re-

establish it. Second disadvantage is that there would be probable technical blunder, always the risk

that a digital economy will become overly reliant on technology is always in existence cashless so-

ciety more technology is needed.

References

A Psychological Approach to Bitcoin Usage Behavior in the Era of COVID-19: Focusing on the

Role of Attitudes Toward Money. Journal of Retailing and Consumer Services, 102606.

ADVANTAGES AND DISADVANTAGES OF CASHLESS SOCIETY. 5

Alena, M. (2021). Advantages and Disadvantages of a Cashless System in Thailand during the

COVID-19 Pandemic. The Journal of Asian Finance, Economics, and Business, 7(12), 385-

388.

Alena, M. (2021). The prospect of abandoning of cash operations and transition to new forms of

contactless payments as a consequence of coronavirus infection. Скиф. Вопросы

студенческой науки, (2 (54)).Cashless Transactions Through Ecommerce Platform in the

Post-Covid-19. International Journal of Research and Innovation Management, 6(1), 1-12.

Nageshwaran, G., Harris, R. C., & Guerche-Seblain, C. E. (2021). Review of the role of big data

and digital technologies in controlling COVID-19 in Asia: Public health interest vs. pri-

vacy. Digital Health, 7, 20552076211002953.

RYANDONO, M. N. H., MUAFI, M., & GURITNO, A. (2021). Sharia Stock Reaction Against

COVID-19 Pandemic: Evidence from Indonesian Capital Markets. The Journal of Asian Fi-

nance, Economics, and Business, 8(2), 697-710.

Taskinsoy, J. (2020). A move towards a cashless society accelerates with the novel coronavirus in-

duced global lockdown. Available at SSRN 3747750.