Considering The Pros And Cons Of A Cashless Society
Stratfor analysts, Lynn Wise and Mark Fleming-Williams, discuss recent developments, along with the pros and cons, that are clearing the path towards a global cashless economy.
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Wow, Stratfor is a very unfortunate think tank that starts out with the crime issue, when the real issue is the negative rate issue for cashlessness. Stratfor is way over its head here. The Germans want large bills because they are easier to hide. That means less crime, not more. Cashlessness will be resisted by cash substitutes. And Scandinavia has a very large safety net, that other nations toying with the idea of cashlessness simply do not have. This makes cashlessness dangerous to the poor, and to travelers, and ultimately could impact everyone. Hackers will concentrate on shutting down payment systems. That should be fun, right? Stratfor is clearly in the big bank camp, but what did anyone expect otherwise?
I would like to add a couple of more points. The title is pros and cons of a cashless society. Few cons were given, but really only that there is some resistance. Also, negative interest rates and a cashless society have unintended consequences.
1. How far negative do you have to go to make stimulus work?
2. How many people will fall off the digital grid, and even experience weather emergencies leading to having no way to pay for anything?
3. How will banks be perceived if negative goes too negative, as thieves, when they already are perceived that way by millions of Americans?
We cannot be sure how people will act. Buying gold or other valuables will not boost the economy in any real way. Those purchases are a vote against the economy. But people will be driven to buy them if rates go too negative.