- Personal Finance
Cashless Society: Why We Need It
The Need for Cashless Society
Have you ever made a payment without any physical exchange of cash? Have you ever made or accepted any online payment on the internet with computers where only figures were involved? Did you notice that everything was easier and much more convenient than the ordinary physical cash exchange? You may not realize it then but you are actually using electronic cash payment systems.
Welcome to the new world of cashless society!
The payment system has gone through a lot of changes and evolution since the very first barter market system to the most recent electronic payment system which is being more and more globalized today. Electronic Cash can take on many forms; bank cards, credit cards, debit cards, mobile phones, electronic banking, ATMs and so on.
I remember the time when I wanted to buy a very good quality mobile phone that will suit my style. After browsing through gsmarena.com website, I discovered the mobiles that had the qualities I really wanted in a phone. I knew the phone could also be found on Amazon for purchase. So, everything was set. Then I discovered I still had one very big problem. Amazon.com does not have any shop in Nigeria which meant that there was no way they were going to even accept our Naira!
That was how my desire to possess a nice mobile ended. Until I discussed the problem with a friend. I have always known that this guy was always buying most of his electronics and stuffs abroad but I have never bothered to ask him how he does it. So when this problem of mine came up, I had to ask him.
He simply told me to consider that very day as my lucky day. In a moment, he went into action. Next thing I know, we were exchanging our Naira into USD at our local bureau de change. After the exchange, we paid the cash into his domiciliary account and that was that. The next day we were making some purchases on amazon.com with his American Express MasterCard and that was the beginning of how I got that very phone I so much desired.
This is just one of the amazing advantages of having a cashless society.
Cashless society makes it easily and readily possible for someone to make purchases anywhere in the world without being actually being physically present. It also promotes trades and business across borders by destroying the barriers of differences in national currencies. Thus cashless society allows for the easy payments of goods and services especially in our world today as the world is gradually migrating into a global village, hence the great need for people to go cashless. Another plus for going cashless is the ease of making such payments. People are now able to make payments with their mobile phones in the comfort of their homes. There is also a whole lot of time that is freed up for leisure, increased productivity, effectiveness and efficiency is increased because of the little amount of almost insignificant loss time required to effect payments under the electronic cash system.
But then there are yet many other reasons why cashless society should be embraced.
Checking bank robberies. Cashless society is one effective way in which bank robberies can effectively be controlled or even put to an end. This is simply because there will be no more cash to be stolen by the dare-devil armed robbers. Unless, those robbers have devised a means of converting ordinary numbers seen on the computer screens into physical cash, then they will go home empty-handed and electronically defeated. The problems and risks faced by armed police guards in transporting huge sums of raw cash from one bank location to another bank are too many. We have heard cases whereby these mobile policemen were waylaid and sometimes killed by criminals on the way when carrying these bulky sums of cash from one bank to another. All negative stories like these will simply become a thing of the past simply because there will be no cash to carry about. It is virtual money all the way as everything boils down to ATMs, credit and debit cards, plastics with embedded magnetic chips and passwords!
Reduced cost of printing money. All over the world, governments are known to be spending so much money in printing in more money and in minting coins too. Also so much money is involved in maintaining the quality of such printed cash in terms of providing stronger securities as a guard against counterfeiting by unscrupulous individuals and syndicates. Again, the physical conditions of such printed cash should also be taken into consideration because paper money is one of the most handled objects in any society. Now, with the advent of cashless society, there will be no need whatsoever to print paper money as well as mint coins again thus saving huge amount of money for the government. Even other forms of physical money like checks and money orders will also disappear.
Cashless society can effectively check money laundering amongst syndicates all over the world. This is because cashless society institutes an effective cash movement control whereby the transfer of cash from one place to another is monitored. As one of the pros for going cashless, there will be no need for individuals to even carry physical cash about. I have always imagined what it was like when people in Zimbabwe had to move large sums of almost worthless paper money during that dark period of the highest inflation witnessed in that African country! So that effectively eliminates the availability of cash to be moved around by syndicates involved in money laundering all over the world. This advantage will at least go a long way in checking the corrupt tendencies of many African leaders who are well known to be involved in such dubious activities of money laundering.
Paper money is one of the most ubiquitous and most widely-travelled articles on earth hence they carry some amount of disease and germs as they are moved around by people everyday. Have you ever wondered about all the places, all the nook and cranny, that piece of paper money you are holding right now in your hands have been to? I bet if you only knew, you might find it so hard to touch that paper again considering the dirt and germs it must have picked up in the course of its journey round the country to your pocket or wallet. There is no restriction on who should touch money or not. There is absolutely no control or legislation on the level of cleanliness of the hands that should handle the paper thus we are always exposed to great health risks anytime we handle money. Cashless society can seriously protect us from such health hazards.
These advantages of moving toward a cashless society would not be limited to the above mentioned matters only, but considering these and many other factors affecting this movement, it seems like we are moving gradually toward the cashless society but not in a pace that we are ever going to reach it.