Pros and cons of a cashless society
The recent years has seen a rise in going cashless and the usefulness it brings with it, with less hard cash in has gotten fairly easier to carry and comfortable. This change has also brought crimes like stealing of money, robberies to become lower nowadays, since it is no longer necessary to carry a bag full of money, you could just use a bankmitra card or UPI to make any transaction on the go.
Pros of a cashless society
Reduces risk of crime – Carrying cash often makes you an easier target for criminals. If cash is removed from business premises, this risk of getting robbed gets lowered substantially. It also means a small business does not have to worry about employing security guards.
Less tax evasion – A significant problem for governments is the issue of tax evasion. Governments around the globe has been really trying hard to find a way to address this issue with lesser hassle, and it seems like cashless transactions is the key to doing so by going cashless, the government and the private companies does not have to pay the employees in cash, instead the amount can be directly transferred to their bank accounts and before making the disbursement the tax can be deducted directly on the income, making very less room for anyone to evade on taxes.
Harder for organised crime – Organised crime rely on transactions made in cash, now if suddenly cash were to disappear and everyone turns cashless from shop keepers to businesses it would become very difficult for robberies to happen. And the security on cashless modes are higher for petty thief to crack.
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International Payments Become Much Easier
When you’re out visiting our touring countries that doesn’t share the same currency as your country you would normally have exchange your currency to their local currency to make any kind of transaction there, which is a lot hassle, but since the progression of cashless society you don’t need to worry about it anymore everything gets converted online when you make payments using any electronic mode of payments.
Cons of a cashless society
Cashless Transactions Are Exposed to Hacking Risks
Hackers, who rob banks bc in the online world. In a cashless society, it’s like a playground for them If they target your account, and get your account details they can easily drain out your account, and if you don’t have any alternative ways to spend money. Then forget about redeeming your financial standing in the society any sooner.
Freedom to choose – The big difference in the use of electronic modes of payments in shops or other places compared to transactions made in cash ,if the online mode is made compulsory than it would be discrimination and unfair against those who still don’t have an bank account to make online payments such as kids or teens .
Potential technological failures – Glitches, outages, and unknowing mistakes can lead to trouble for the buyers and complicate things, also might cause conflict, there are times due to network error or some other technical issues the transaction might fail and cause unrest in emergency situations if there’s no cash in hand of the customer.
Cash helps ration spending – People easily intently go into debts when making purchases on cards , since there’s no actual cash involved it doesn’t make them feel that they may be overspending, which is really dangerous , compared to when such expenses are done through cash, people tend to feel it psychologically more that they have to pay so much later to clear a debt, which keeps them cautious constantly, which can be the reason why house budgets for most middle class and lower class families are done based on the hard cash they can safely spend.