Governments of different countries are opting different ways to fight corruption. Just a while ago, in India, the central government of the country accompanied by Prime Minister Narendra Modi has proposed a sudden ban on currency notes of higher denominations, an act now referred as demonetization. The purpose to introduce demonetization is to restrict the circulation of black money in the country. The Indian government is emphasizing on making people go cashless so that dependence on cash transactions may be limited. Many countries have already gone cashless and there are much more that are trying to go digital. So, this article is dedicated to basically the meaning of cashless, and its advantages as well as disadvantages.
What’s a Cashless Society?
It is a society where cash or currency notes are not used in general monetary transactions. In past years, cashless societies were seen on barter system where people used to exchange their existing stock for goods or food items. Though, this concept has changed completely if seen in today’s perspective. Cashless transactions can be explained as the transactions performed using digital currencies like bitcoin, ethereum, etc. In a cashless society, monetary transactions are recorded and saved only digitally.
When did it start?
In the year 1990, the usage of electronic banking and digital payment methods grew preferably in developed countries. Such cashless transactions started taking a better shape from the year 2010. Online mediums like PayPal and NFC payments by mobile devices/tablets or electronic cards, digital wallet options introduced by Apple, e-banking allowed people to make cashless transactions soothingly. To amplify the cashless transactions, many countries started to set limits on transaction values for non-digital payments.
Advantages of a Cashless Society:
The cashless society is for the welfare of the international economy. Till now, cash was considered as the prior medium to be used in money laundering, corruption, and terrorist activities, going cashless would solve these issues. The cashless society would support Central Governments to monitor income tax paid as well as whole tax payment by an individual more easily. It would also be assisting in the scenario of negative global inflation. Corruption would be reduced because payments’ tracking would be easier.
Following are the top countries that use cashless transactions the most:
In Belgium, France, and Canada, more than 90% consumer payments are done using cashless modes. The UK, Sweden, Australia, Netherlands, and the US also show high rates of consumer payments (more than 80%) done through non-cash modes. Germany and South Korea also use cashless modes for consumer payments. Now, only time would show us the countries that will be adopting cashless transactions for the betterment of the global economy.
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