Cash had a pretty good run for 4,000 years or so. These days, though, notes and coins increasingly seem declasse: They’re dirty anddangerous, unwieldy and expensive, antiquated and so very analog.
Sensing this dissatisfaction, entrepreneurs have introduced hundreds of digital currencies in the past few years, of which bitcoin is only the most famous. Now governments want in: The People’s Bank of China says it intends to issue a digital currency of its own. Central banks inEcuador, the Philippines, the U.K. and Canada are mulling similar ideas. At least one company has sprung up to help them along.
Much depends on the details, of course. But this is a welcome trend. In theory, digital legal tender could combine the inventiveness of private virtual currencies with the stability of a government mint.
Most obviously, such a system would make moving money easier. Properly designed, a digital fiat currency could move seamlessly across otherwise incompatible payment networks, making transactions faster and cheaper. It would be of particular use to the poor, who could pay bills or accept payments online without need of a bank account, or make remittances without getting gouged.
For governments and their taxpayers, potential advantages abound. Issuing digital currency would be cheaper than printing bills and minting coins. It could improve statistical indicators, such as inflation and gross domestic product. Traceable transactions could help inhibit terrorist financing, money laundering, fraud, tax evasion and corruption.
The most far-reaching effect might be on monetary policy. For much of the past decade, central banks in the rich world have been hampered by what economists call the zero lower bound, or the inability to impose significantly negative interest rates. Persistent low demand and high unemployment may sometimes require interest rates to be pushed below zero — but why keep money in a deposit whose value keeps shrinking when you can hold cash instead? With rates near zero, that conundrum has led policy makers to novel and unpredictable methods of stimulating the economy, such as large-scale bond-buying.
A digital legal tender could resolve this problem. Suppose the central bank charged the banks that deal with it a fee for accepting paper currency. In that way, it could set an exchange rate between electronic and paper money — and by raising the fee, it would cause paper money to depreciate against the electronic standard. This would eliminate the incentive to hold cash rather than digital money, allowing the central bank to push the interest rate below zero and thereby boost consumption and investment. It would be a big step toward doing without cash altogether.
Digital legal tender isn’t without risk. A policy that drives down the value of paper money would meet political resistance and — to put it mildly — would require some explaining. It could hold back private innovation in digital currencies. Security will be an abiding concern. Non-cash payments also tend to exacerbate the human propensity to overspend. And you don’t have to be paranoid to worry about Big Brother tracking your financial life.
Governments must be alert to these problems — because the key to getting people to adopt such a system is trust. A rule that a person’s transaction history could be accessed only with a court order, for instance, might alleviate privacy concerns. Harmonizing international regulations could encourage companies to keep experimenting. And an effective campaign to explain the new tender would be indispensable.
If policy makers are wise and attend to all that, they just might convince the public of a surprising truth about cash: They’re better off without it.
To contact the senior editor responsible for Bloomberg View’s editorials: David Shipley at firstname.lastname@example.org.
10 thoughts on “Bring On the Cashless Future”
Looks like another plan for the government to track EVERY PENNY you have, AND to ensure that no one is “hiding money under the mattress”, therefore, not allowing the Rothschild to control your money as they control most governments.
And NEVER give it back if it’s expedient to their needs.
What a GREAT CONCEPT for absolute rule, slavery, and tyranny! 100% control over your survival.
But it WILL make my double macchiato at Starbucks each morning sooooo much easier by me simply scanning my RFID-wrist!
Wait until the first major power outage or after a (natural) disaster.
Electronic fund transfers do not always work in emergency situations.
I would expect nothing less of a pathetic article like this coming from Bloomberg. They just love promoting the NWO agenda. Sick bastards.
Take everything this article says and turn it around 180 degrees. THAT would be what is BEST for all except those who worship power, control and the Mammon of unrighteousness.
Give it a few more years and the US of A will be cashless. This is what they want. Then THEY will have total control
BARTER when possible, don’t use digital cash.
“And you don’t have to be paranoid to worry about Big Brother tracking your financial life.
Governments must be alert to these problems — because the key to getting people to adopt such a system is trust. A rule that a person’s transaction history could be accessed only with a court order, for instance, might alleviate privacy concerns.”
Haha So a government that would want to track you for control, would follow a court order that is written by them and “enforced” by courts and agencies they control?
Do they read what they write? Who comes up with this shite? Insane. SMFH
I also like their allusion to how you must be “paranoid” if you “worry” about them tracking your financial life.
“It’s only in your head and they would never do anything to get more wealth and power. They are the government and they are here to help.”
Because no one and no government would EVER do anything like that?!
“Cash had a pretty good run for 4,000 years or so. These days, though, notes and coins increasingly seem declasse: They’re dirty and dangerous, unwieldy and expensive, antiquated and so very analog.”
Is this an article or an advertisement?
“Sensing this dissatisfaction, entrepreneurs have introduced hundreds of digital currencies in the past few years, of which bitcoin is only the most famous. Now governments want in: The People’s Bank of China says it intends to issue a digital currency of its own. Central banks inEcuador, the Philippines, the U.K. and Canada are mulling similar ideas. At least one company has sprung up to help them along.”
Because if China is doing it, then I guess we all should be doing it, right? I mean they own our country and our resources now, don’t they? Gotta please the Chinks, don’t ya know?
Hang ’em all! 😡
“Much depends on the details, of course. But this is a welcome trend.”
Really? For who? The elites? Because it sure as HELL ain’t “a welcome trend” for We the People.
Up yours, Bloomie!
“Traceable transactions could help inhibit terrorist financing, money laundering, fraud, tax evasion and corruption.”
Yea because we all know that happened when Eric Holder ran Fast and Furious and all our money went to Syrian terrorists/rebels.
“Governments must be alert to these problems — because the key to getting people to adopt such a system is trust.”
Trust. That’s friggin’ hilarious. The government is far FAR from trusting these days to anyone. They destroyed that trust a LOOOONNGG time ago and killing LaVoy destroyed that trust even more lately.
“A rule that a person’s transaction history could be accessed only with a court order, for instance, might alleviate privacy concerns.”
Bahahaahaha! I can’t believe this author is serious? How much did he or she get paid for writing this crap? I’m thinking since there is no author listed that this was done by someone or a group of people that know this is all bullshit and didn’t want to have their careers ruined by it.
“Harmonizing international regulations could encourage companies to keep experimenting.”
Since when do we need “international regulations”??? Oh yea, they want their global/NWO currency.
Once again, hang the sick bastards! 😡
Allowing these ‘jew’ bank rats to end cash will lead to ‘full spectrum dominance’ over your very life.
Every transaction being tracked is just a start.
It wont just be about what you CAN buy, but what the ‘jew’-banks will ALLOW you to buy, or even FORCE you to buy…like obumacare.
Imagine, attempting a transaction while having sufficient funds, only to have the bank deny your purchase for any arbitrary reason.
Sorry, sir/mam, but the book you want to order ‘200 years together’ is not allowed because it’s incitement. However, you can purchase any internet porn access in your price range. And, as a friendly reminder, don’t forget to top-off your health insurance.
Cashless is very, very bad for freedom in this day and age of unchecked government control and tyranny.