All one needs to think about is what happens for instance during natural disasters when phone lines are down, power is out, internet access is unavailable, you need to to buy supplies or food, and a store will only accept cash for transactions.
We’ve seen the chaos created when the ‘food stamp’ system goes down and people with their cards cannot purchase food. At least in the days of paper ‘food stamps’ transactions could still be performed. They went to paperless ‘food stamps’ to fight fraud, yet people just trade food for cash and all manner of other things by using their cards for others. Fraud hasn’t ceased.
Now imagine a paperless society where noone can buy food and supplies during a natural disaster.
Less than a week after India’s surprise move to scrap its highest denomination cash notes, another front in the War on Cash has intensified down under in Australia. Yesterday, banking giant UBS proposed that eliminating Australia’s $100 and $50 bills would be “good for the economy and good for the banks.” (How convenient that a bank would propose something that’s good for banks!) This isn’t the first time that the financial establishment has pushed for a cashless society in Australia (or anywhere else). In September 2015, Australian bank Westpac published its “Cash Free Report”, suggesting that the country would become cashless by 2022. In July 2016, Australian payments firm Tyro
Everyone benefits from a cashless society… except for you.
For individuals, cash still has plenty of important advantages.
Cash is one of the few remaining options for financial privacy that doesn’t create a permanent record of every purchase or transaction you make.
It’s also an easy way to reduce your exposure to risks in the broader financial system.
Think about it– the banking system is full of institutions that never miss an opportunity to demonstrate they cannot be trusted with our money.
Hardly a month goes by without some major banking scandal; they’re caught colluding on exchange rates, manipulating interest rates, fraudulently establishing fake accounts without customer consent (and then charging us fees on top of that).
In addition, bank safety is far from certain.