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Sure, all of the benefits are great, but it does come with a price. One that I personally think will tear our society apart.
What is an advantage for one group is a disadvantage for another.
#1. Loss of privacy
Even if you’re not planning on La Casa de Papel, there are other reasons that you might want to keep your financials private.
When our entire spending information is digitally recorded, it will give financial institutions and banks surveillance power more than any other. They’ll know how you behave, how you spend, and even your triggers, allowing them to build a virtual version of you. This gives them tremendous leverage power over other firms as the capitalist’s market hunger for consumer data.
Private firms would kill to know what gets you to buy their items.
In other words, they can keep tabs on you. And never have to close it.
Call me pessimistic but all it takes is one hacker to penetrate the firewalls and our data (and potentially money) will be spread across the abyss of the net. It only takes one data breach behind a screen and we could be in danger. Until we find a solution for this, privacy on the Internet remains a mirage.
#2. Technology dependency
In order for us to become a cashless society, we need dependable Internet everywhere we go. Even for developed countries, it can sometimes be difficult to have this access in the rural parts. On top of that, the Internet also comes with a cost. A cost that not every community can afford. At least this is the case until Uncle Elon’s Starlink gets implemented on a wide scale.
And then also, how dependent are the software and how often will it glitch out? What if there’s a power outage for an entire day? How are we going to teach the elderly to operate this technology?
What’s more, is that this will eventually give giant tech corporations like Google and Apple even more power and influence over our lives. We’re already relying so much on these companies for our daily lives. From it being our alarm clocks to scheduling, to entertainment, even merely to stay connected. And if we somehow make Google Pay or Apple Pay the de facto payment method, it will truly entangle us within their ecosystem.
It will make us a slave to these institutions. Assuming we haven’t already.
#3. Widen the wealth gap
The fact that not every community is able to afford the Internet, the phone, or even a bank card, severely handicaps the ability of this group of people to transact. Not having the access to transact cashlessly will further limit the opportunities for this group of people as employers have no way to obtain physical cash for them.
Employers do not have the access to cash and the less fortunate community do not have the access to cashless payments. Further following this leads to unemployment for this group of people, which further digs the hole in their pocket.
From another perspective, merely opening a bank account for the less able group is also not a very feasible choice. That’s because banks will often charge clients for whatever reason they can think of. Be it account maintenance fees, overdraft, insufficient funds, excess transactions, etc. So what really is the point of opening a bank account when all of their money is going to be paid as fees?
#4. Small businesses out
Then, the fact that these poorer communities do not have the ability to pay for the products will lead to smaller business being shut out.
Initially, not all businesses have the ability to finance the payment systems or the technology needed to receive the payments. But even if the business is able to afford that, the fact that there will be some who are unable to pay for the product/service using a cashless format will inevitably chop the business’ revenue.
Okay, now, let’s assume that the small business can survive through all of these, they’ll still be fighting against the current. The reason for that is that a % of their revenue will inevitably go towards the banks and the payment processors.
With this fee, who are the ones who really wins? The corporations that have a huge enough cash reserve that allows them to wait until the smaller businesses go under. These corporations will then have complete monopoly over the market, having no competition at all. The power to bridge or widen the wealth gap then entirely falls on to the decision-makers within these companies.
Capitalism, I guess…?
#5. The fundamentals of economics and finance will change
#6. No more cash gifts
#7. No more cash-paying side gigs
#8. No more piggy banks
#9. Makes it hard for a charity donation
#10. If the bank freezes your account, you might starve
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