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Some prefer cash payments, while others (like me) prefer to pay only with a card. Let’s take a look at the pros and cons if we ever move towards a cashless society.

Many might expect the opposite, but an important benefit of cashless payments is increased security. Carrying cash involves risks such as theft or loss, which can be significantly reduced through electronic payment methods. Cash advocates often see things differently, emphasizing the dangers posed by cyberattacks. True, that risk exists, but banks and large institutions take precautions against such threats, and ultimately, personal security often lies in individual responsibility.

Illegal transactions would generally decrease in a cashless society, as the traceability of electronic transactions makes it much harder to engage in illicit activities like money laundering and tax evasion. Cash remains anonymous, making it easier for criminals to conduct such activities. Many cash proponents express concerns about privacy, but keep in mind that security mechanisms are also in place for electronic payments. If every transaction is traceable, we must ensure that individual freedoms are preserved and access to financial services is fair.

Another significant advantage of abolishing cash is that it helps central banks control the economy better. Digital payments make it easier to manage the money supply, which can help keep inflation in check. 

Moreover, reducing paper money and coins has positive environmental impacts. The production of cash consumes resources and generates emissions. So, there are even positive effects here.

What would change, however, is the culture of gifting money. But I believe there would still be plenty of alternatives, such as digital gift cards.

And if the power goes out, digital payments won’t work anymore, and that’s it (of course not). The payment system has to be designed so that everything still works during a short outage. For longer blackouts, temporary solutions like vouchers or prepaid cards could help keep payments running. Obviously, these issues need to be carefully planned and secured beforehand. Then, in my opinion, nothing stands in the way of getting rid of cash. What do you think?

Closing Words

Living cashless is simpler. It speeds up the payment process and actually has no significant drawbacks, provided all security aspects are taken into account and effectively implemented.