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A Common Ground for Cashless Society Debate

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A Common Ground for Cashless Society Debate

Introduction

In the current digital world, society has embraced going cashless because of the modern
technologies which have enabled the same to happen. It is, however, without doubt that the idea
of going cashless has both its merits and demerits. This essay will explore both the merits and
demerits of the society going cashless and finding common ground for the conversation in the
field since the revolutionization of the society through digitalization. Therefore, the views of
both sides of the opposing and the proposing are carefully weighed, and common ground is
found to facilitate this essay as a constructive one.

1.0. Opposing Views

1.1. Exclusion and Inequality

The society going cashless, meaning that all the transaction is taking place without the
actual physical currencies, is being viewed as causing inequality and exclusion of some segments
of people in the society. It should be understood that not all people in society and every region
globally are updated with the current technologies unfolding. Therefore, certain groups are
underprivileged because of the current technological improvement in society. Older adults and
those vulnerable people who do not have access to the technological gadgets that facilitate
cashless are the biggest casualties in this debate about going cashless (Arvidsson & Arvidsson,
2019). The population who may be affected by society going cashless is quite a big number, as
the 2019 FDIC report indicated that around 5.4% of American households remain unbanked,
while 18.7% remain underbanked (Alaeddin et al., 2019). This means that there is a deficit even
in the countries that are seen to have technological advancement. What about taking the case of
some countries with a higher number in rural areas who do not even have electricity access?
Therefore, These categories cannot transact cashless and are greatly affected by society's
decision to go cashless. The conversation is, however, not limited to the age group, such as in the
case of the elderly in society or even in the social class perception. Some people may be well off,
but their geographical structures, whereby some rural areas need internet connectivity, they
cannot access digital financial services (Taskinsoy, 2020). In remote parts of Africa, it is obvious
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that people still rely heavily on cash transactions due to a lack of internet connectivity; hence,
they are fully left out of the conversation of going cashless due to where they are located.

1.2. Privacy and Data Security

One of the central issues used in the cashless transformation is an individual's privacy
and data security. Cybersecurity and data breaches have been rampant in the current society, and
therefore, when the data of everyone is in the cloud, it is very easy to hack the systems and
breach the data of particular people, hence a deterrence to the conversation of going cashless.
Cashless services leave digital footprints of a person’s data, which can be easily traced, and their
accounts can be fully wiped. A case study is when the 2017 Equifax breach exposed some
sensitive information of over 147 million people (Fabris, 2019). The incident sparked the idea of
how safe people's data is in the hands of the cloud tech companies that must be involved in these
conversations. There is a need for protection measures to be taken into consideration before
bringing in the idea of going cashless in society. The Cambridge Analytica scandal is another
case study whereby a data breach was witnessed, and it messed many people with their
information and data put at risk (Glennow & Granström, 2019). The cybercrimes must be greatly
reduced if not fully addressed to ensure that the cashless society can be transformed. Otherwise,
many fear going cashless and would rather have their money in physical currencies.

2.0. Proposing Views

2.1. Convenience and Efficiency

The proponents of the idea of a cashless society have argued that it offers a convenient
means of transactions which is efficient and can be done within a few seconds. Digital payments,
including mobile wallets and online banking, have greatly changed the story of the cash currency
in paying bills (Rutter & Winther, 2019). People can pay their bills successfully in the comfort of
their places without carrying cash and walking around wasting much time to the necessary
offices. People can also shop, pay online, and successfully receive their goods – thanks to the
cashless proponents’ arguments. Statistical report indicates that as of 2021, over 45% of e-
commerce sales globally are made through online payment. Digital payments have also made life
easier, especially during the COVID-19 pandemic when people embraced the cashless means of
payments to combat the spread of the virus (Rivera, 2019). Ince, then, it is obvious that cash
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usage has drastically reduced, and this is evident in countries like Sweden, which has embraced
cashless transactions for efficient operations of business activities.

Reduced Crimes and Tax Evasion

Most crimes are being facilitated by having much cash or at home. Physical cash is a
medium of illegal social activities whereby the transactions do not need tracing. Therefore, The
perpetrators would prefer bulk cash transactions, promoting crime in society. Adopting cashless
transactions can help curb such crimes since suspicious transactions can be easily flagged,
reducing crime rates in societies. People who use cash also leave no trace of their businesses and
cannot be taxed (Lupo-Pasini, 2020). However, cashless transactions will expose the potential
size of the business, hence reducing tax evasion among people, which would immensely
contribute to the government's economic growth. Many governments have introduced digital tax
systems requiring nobody to carry bulk cash to the revenue offices. Instead, they must comply
with the digital tax methods and file their appropriate tax returns online. This has improved the
revenue collections, benefiting the public services and infrastructure systems.

However, it is great to acknowledge the validity of both the proponents and the
opponent’s ideas and supporting information on the society going cashless. The underprivileged
people in society, the elderly and those concerned with cyber security and data breaches are right
in their apprehensions (Loh et al., 2022). Also, the advocates of this idea, which cite the reduced
crime rates, the reduction in tax evasions, and the efficiency and the convivence that the cashless
transformations come with, are right in their views and apprehensions.

3.0. Compromise

Therefore, a reasonable compromise is fully in addressing these opponents’ ideas without

discarding the idea of going cashless. For the government to ensure cashless transformation, the
debate must include educating the elderly on how to utilize digital financial systems and having a
robust internet connectivity system in every part of the globe to ensure the conversation is done.
Also, the data and information of every person in society must be addressed effectively to drive
out the fear of such occurrences. Governments must assure their citizens that they care about
their data privacy and invest in the technological buildup of such systems (Hjelm & Brzoska,
2020). Countries like the European countries have already implemented the General Data
Protection Regulation, which safeguards individual privacy. Other countries must, therefore,
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follow the suits to ensure that they protect their citizens' data before indulging in the
conversation of going cashless.

4.0. Conclusion

The debate of whether society should go cashless remains at a crossroads for both the
opponents and proponents of the idea. Therefore, society must address all the concerns, such as
the exclusion of data privacy, before implementing the idea. It is, however, convenient and
efficient, but it must include everyone without leaving some loopholes. To search for common
ground in the debate, a cashless society must be inclusive, safe and efficient to ensure the debate
goes on the proponents' side. These findings are key in transforming and evolving the current
financial system for a prosperous future for everyone in society and every part of the world.
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References

Alaeddin, O., Altounjy, R., Abdullah, N., Zainudin, Z., & Kantakji, M. H. (2019). The future of
corruption in the era of cashless society. Humanities & Social Sciences Reviews, 7(2),
454-458.

Arvidsson, N., & Arvidsson, N. (2019). Understanding the Process Toward a Cashless
Society. Building a Cashless Society: The Swedish Route to the Future of Cash
Payments, 45-53.

Fabris, N. (2019). Cashless society–the future of money or a utopia. Journal of Central Banking
Theory and Practice, 8(1), 53-66.

Glennow, E., & Granström, A. (2019). Cashless society: Is there a relationship between
innovation and cash circulation in economy?.

Hjelm, J. L., & Brzoska, R. A. (2020). How contactless payments are influencing consumer
behavior in on-the-go consumption in a cash-free society?.

Loh, X. M., Lee, V. H., Tan, G. W. H., Hew, J. J., & Ooi, K. B. (2022). Towards a cashless
society: the imminent role of wearable technology. Journal of Computer Information
Systems, 62(1), 39-49.

Lupo-Pasini, F. (2020). Is it a wonderful life? Cashless societies and monetary exclusion. Rev.
Banking & Fin. L., 40, 153.

Rivera, J. W. (2019). Potential negative effects of a cashless society: Turning citizens into
criminals and other economic dangers. Journal of Money Laundering Control, 22(2),
350-358.

Rutter, K., & Winther, M. W. (2019). Is a Cashless Society Achievable?. The Journal of
Investing, 28(3), 73-87.

Taskinsoy, J. (2020). A move towards a cashless society accelerates with the novel coronavirus
induced global lockdown. Available at SSRN 3747750.