Cashless Society's Benefits and Drawbacks ( part 2)

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8 Sept 2022

Benefits of the Cashless Economy

No Forged Currency:
Values in Forged Currency will be deemed Null and Void. People who engage in socially harmful behavior have a tendency to amass money in cash. This collected cash will be unusable as a result of the note ban in a cashless economy transition. When people put money in the bank, the government will inquire about their specific source of income, also Computerized payments will increase openness and accountability. Only in a cashless economy can the economy grow while carrying liabilities.

Cash fraud will be kept to a minimum:
Cash fraud and theft will both be kept to a minimum. No one would dare steal money after the note prohibition, which will immediately stop crime.

Easy Payment:
The cashless transaction ensures easier payment across the country and even the world at large. For instance, using the NEFT system makes it simple for users to send money to locations all over the world.

Easy International Pay:
For many people who opt for international travel, exchanging money is a tedious task. For those people, cashless payment is an ideal choice.

The Drawbacks of the Cashless Economy.

Low Literacy Rate:
One of the main reason why a cashless economy might not be visible is the low literacy rate. Computers and the internet are therefore a long way off. The majority of rural areas, where a large portion of the population resides, lack these essentials. People in these impoverished places are totally dependent on money. If they are dependent on another person for their internet activity, they may be tricked.
there is no way to ensure that crime would decline. A person who demands a bribe in cash might also want one in kind.

Economic Disparity:
If the traditional method of payment is totally replaced by a cashless system, it is likely that acquiring smartphones or other gadgets will be necessary. Buying a smartphone is most definitely a luxury that these underprivileged parts of the population in a country like India cannot afford when many people struggle to provide for their daily needs like food and shelter. Inequality will be evident in society if cashless transactions become the norm because not everyone will be able to afford them.

Due to the widespread hacking of banks and personal accounts, the society would need to tighten its cybersecurity. Any nation may be more exposed to these dangers due to its immaturity in the field of cybersecurity.

Overspending:
It is undeniably true that cashless transactions are simpler to complete with just a single click; customers may carry out payments. Transactional advantages encourage overspending, especially among the younger generations.

Identity Theft:
One of the major drawbacks of any cashless economy is the possibility of identity theft. With each passing day, the rate of online fraud rises, increasing the risks of hacking. Not everyone is especially tech-savvy or knowledgeable.