Why you and your community needs cash!

As the world continues to embrace technological advancements, the concept of a cashless society is becoming more prevalent. A cashless community refers to a society that primarily relies on electronic forms of payment, such as credit cards, mobile wallets, and online transactions, while gradually phasing out the use of physical cash.

While there are several advantages to moving towards a cashless system, including convenience, efficiency, and improved tracking of transactions, there are also significant disadvantages that should stop the digital enconomy in its tracks and put it into perspective where there are clear parameters around it’s use. The digital economy should only be considered niche and should never be allowed to take the place of real currency.

One of the main disadvantages of a cashless community is the issue of exclusion and inequality. Not everyone has access to the technology required to participate in a cashless society. Vulnerable populations, such as the elderly, low-income individuals, and those living in rural areas with limited internet connectivity, may struggle to adapt to a cashless system. This could further marginalize these groups and prevent them from fully participating in economic activities. A cashless society strips an individual and the community of its strength, individiualism, privacy and freedom of choice.

Another concern related to a cashless community is the potential for privacy and security breaches. When all transactions are conducted electronically, individuals are at a higher risk of cyber attacks, identity theft, and data breaches. Cashless transactions can leave a digital trail of personal information and financial data that can be exploited by hackers or other malicious actors. This raises serious concerns about the security of personal information and the vulnerability of individuals in a cashless society.

Furthermore, a cashless community could impact individuals’ spending habits and financial literacy. When people are no longer physically handing over cash for purchases, they may lose touch with the tangible nature of money and become detached from their spending behavior. This could lead to increased impulse buying, overspending, and a lack of awareness of financial consequences. Without the physical act of counting and handling cash, individuals may also struggle to develop basic money management skills, such as budgeting and saving.

Additionally, a cashless society could have negative implications for small businesses and the informal economy. Cashless transactions often come with processing fees and transaction charges that can place a financial burden on small merchants and businesses.

There are several reasons why cash may be needed in a community, despite the increasing prevalence of digital payment methods. Cash remains essential for various transactions and situations due to the following reasons:

• Community Strength: Cash keeps its value in your pocket and in your communtity. The cash is always there. With the digital environment when you make a purchase your money leaves the community. There is no local digital vault like a brick and mortar bank. No cash in your pocket or in your community weakens your community, it gives the financial control of yourself and your community to someone else thousands of miles from you.
• Loss of Local Jobs: Bank branches are closing everywhere. A regular regional bank used to employ 15 people on average. No there is none. Your children looking for a job/career in banking won’t have that option locally and soon won’t have that option at all anywhere.
• Emergency Situations: In times of natural disasters, power outages, or technical failures, cash may become the only accepted form of payment. Having cash on hand during emergencies can ensure that individuals can purchase necessary supplies like food, water, and fuel.
• Financial Inclusion: Not everyone has access to banking services or digital payment methods. People without bank accounts or those living in remote areas may rely on cash as their primary form of payment.
• Small Businesses: Many small businesses, particularly local vendors, food trucks, and farmers’ markets, still prefer cash payments due to lower processing fees associated with electronic payments. Cash transactions can also be faster and more convenient for smaller businesses.
• Anonymity and Privacy: Cash transactions offer a level of privacy and anonymity that digital payments do not. Some individuals prefer cash for the confidentiality it provides, especially for personal transactions or purchases.
• Tips and Charitable Donations: Cash is often the preferred method for giving tips to service workers like waitstaff, delivery drivers, and housekeepers. Similarly, charitable donations made in person or at events often require cash.
• Budgeting and Financial Management: Using cash for day-to-day expenses can help individuals better track their spending and stick to a budget. The physical act of handing over cash can make people more mindful of their purchases.
• Cultural Practices: In some communities or cultural contexts, cash is still the customary form of payment. Cash gifts for special occasions, traditional ceremonies, or religious practices may be expected or required.
• Public Transportation and Local Services: Public transportation systems, parking meters, vending machines, and some local services may only accept cash payments. Having cash readily available can ensure easy access to essential services.
• Security and Fraud Prevention: Cash transactions can protect individuals from potential cyber fraud, identity theft, or unauthorized charges that may occur with digital payments. Additionally, cash is not subject to issues like hacked accounts or network failures.
• Emergency Fund: Keeping a stash of cash at home or in a safe place can serve as an emergency fund for unexpected expenses or situations where access to traditional banking services may be limited.

In conclusion, while the shift towards a cashless society offers many benefits, such as convenience and efficiency, it is important to recognize and address the potential disadvantages that come with it. Issues such as security, exclusion, identity theft, privacy concerns, financial illiteracy, and the impact on small businesses and communites need to be put into perspective in the broader scheme of things. Maintaining a balance between digital and cash payments ensures individuals can meet their diverse financial needs effectively and communites can maintain their own economies. The continual removal of hard currency from peoples hands will continue to deteriorate communities and economies. Help say no to digital currency. Talk to others about what you have learnt here and pass it along.