As more and more transactions go digital, or plastic so to say, we look towards the future with a model that does away with currency notes and coins altogether and yet keeps alive the essential principle that money serves, without attaching any tangibility to it.
Cashless Society (Cashless Economy, Online Transactions, is india moving towa...Jeet Amrutiya
Pros and cons of cashless society.........
India's current Position on cashless
Is india moving towards this or not.......
How demonetization affected ........
What is Cashless Economy ? Advantages, Disadvantages, Different Cashless payment methods, internet banking, plastic money, e-wallet, Point of sale, how to secure your cashless payment, future of cashless payment.
By making our country go digital we can only see a nation rid of corruption and fake notes. There is hardly a way to freeze black money in a unidentifiable source.As the country moves towards a cashless environment after demonetisation, the initial awe and confusion have given way to a flurry of concerns.
Cashless Economy and its Impact on Modern Society.Raghav kulkarni
The following Paper Illustrates the effects of Cashless Economy and how this payment methodology influenced modern day Society and How has Cashless economy influences a countries Growth.
Cashless Society (Cashless Economy, Online Transactions, is india moving towa...Jeet Amrutiya
Pros and cons of cashless society.........
India's current Position on cashless
Is india moving towards this or not.......
How demonetization affected ........
What is Cashless Economy ? Advantages, Disadvantages, Different Cashless payment methods, internet banking, plastic money, e-wallet, Point of sale, how to secure your cashless payment, future of cashless payment.
By making our country go digital we can only see a nation rid of corruption and fake notes. There is hardly a way to freeze black money in a unidentifiable source.As the country moves towards a cashless environment after demonetisation, the initial awe and confusion have given way to a flurry of concerns.
Cashless Economy and its Impact on Modern Society.Raghav kulkarni
The following Paper Illustrates the effects of Cashless Economy and how this payment methodology influenced modern day Society and How has Cashless economy influences a countries Growth.
Studied technology involved in E-Wallets and how it helps in payment process,market place model, revenue generation of Paytm,its marketing strategy,demonitisation and its after effects.
Introduction of E-Wallets, its types, Advantages,Disadvantages, Examples of E-Wallet,Needs of E-Wallet, Top E-Wallets in World and in India, Description of Mobikwik, its Steps, Architecture of transfer between two wallets, About Paytm, How does Paytm Earn, Recharge on PayTm, Steps to use Paytm, Web Technologies of Paytm, Good at Paytm and Bad at it, Our own proposed system to overcome the disadvantage of existing system
Digital Currencies- Block chain, Cryptocurrencies and Bitcoin Sai P Mishra
Digital currency is a money balance recorded electronically on a stored-value card or other devices. It exhibits properties similar to physical currencies, but can allow for instantaneous transactions. Digital Currencies like blockchain, bit coin, etherium are emerging and has great future.
The Reserve Bank of India has proposed major reforms in banking sector with issue of guidelines for setting up “Small and Payment Banks” which will cater to marginalized sections of the Society, including migrant laborers, for collecting deposits and remitting funds.
These banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. The payments banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds. They will have a widespread network of access points particularly in remote areas, either through their own branch network or through Business Correspondents (BCs)/agents or through networks provided by others.
EPS system explanation, How EPS System works in real world, Model of E- Payments, Security concerns related to EPS systems, Case study of paytm related to electronic payment
Use of Articificial Intelligence and technologies in providing financial services is what fintech does. Whether it is Payment gateway, insurance, banking, lending, stock trading, taxes.
How Fintech evolved over the years in the World and Indian Economy.
Indian Fintech Companies under different categories
Common Fintech practices adopted by Fintech Companies with better flexibility, convenience and accessibile financial products and services
Crossing Borders – Key Payment Systems Outside the U.S.Nasreen Quibria
Enhance your understanding of retail and commercial payment systems outside the U.S. and learn how the rest of the world has implemented ACH, funds transfer, and check systems. This session focuses on important national payment systems in different countries throughout the world and their distinguishing characteristics – a must for any institution that wants to know more about non-U.S. payment systems. We will also cover the evolving environment for “ACH” payments outside the U.S. and talk about what’s taking place – identifying some of the organizations involved in cross-border “ACH” payment services.
Studied technology involved in E-Wallets and how it helps in payment process,market place model, revenue generation of Paytm,its marketing strategy,demonitisation and its after effects.
Introduction of E-Wallets, its types, Advantages,Disadvantages, Examples of E-Wallet,Needs of E-Wallet, Top E-Wallets in World and in India, Description of Mobikwik, its Steps, Architecture of transfer between two wallets, About Paytm, How does Paytm Earn, Recharge on PayTm, Steps to use Paytm, Web Technologies of Paytm, Good at Paytm and Bad at it, Our own proposed system to overcome the disadvantage of existing system
Digital Currencies- Block chain, Cryptocurrencies and Bitcoin Sai P Mishra
Digital currency is a money balance recorded electronically on a stored-value card or other devices. It exhibits properties similar to physical currencies, but can allow for instantaneous transactions. Digital Currencies like blockchain, bit coin, etherium are emerging and has great future.
The Reserve Bank of India has proposed major reforms in banking sector with issue of guidelines for setting up “Small and Payment Banks” which will cater to marginalized sections of the Society, including migrant laborers, for collecting deposits and remitting funds.
These banks will provide a whole suite of basic banking products such as deposits and supply of credit, but in a limited area of operation. The payments banks will offer a limited range of products such as acceptance of demand deposits and remittances of funds. They will have a widespread network of access points particularly in remote areas, either through their own branch network or through Business Correspondents (BCs)/agents or through networks provided by others.
EPS system explanation, How EPS System works in real world, Model of E- Payments, Security concerns related to EPS systems, Case study of paytm related to electronic payment
Use of Articificial Intelligence and technologies in providing financial services is what fintech does. Whether it is Payment gateway, insurance, banking, lending, stock trading, taxes.
How Fintech evolved over the years in the World and Indian Economy.
Indian Fintech Companies under different categories
Common Fintech practices adopted by Fintech Companies with better flexibility, convenience and accessibile financial products and services
Crossing Borders – Key Payment Systems Outside the U.S.Nasreen Quibria
Enhance your understanding of retail and commercial payment systems outside the U.S. and learn how the rest of the world has implemented ACH, funds transfer, and check systems. This session focuses on important national payment systems in different countries throughout the world and their distinguishing characteristics – a must for any institution that wants to know more about non-U.S. payment systems. We will also cover the evolving environment for “ACH” payments outside the U.S. and talk about what’s taking place – identifying some of the organizations involved in cross-border “ACH” payment services.
As ordinary Indians, what can we contribute to make our country more cash efficient? We need to understand the cashless ecosystem first. Here is an attempt to understand the cashless options and how to go cashless.
Plastic money lasts anywhere from two to five times longer than paper money, performs better in vending machines, and is harder to counterfeit. And unlike paper currency, plastic money doesn't shed tiny bits of ink and dust that can disable ATMs by confusing their optical readers.
Plastic money also stays cleaner and becomes less grubby than paper money, because the non-porous surface doesn't absorb perspiration, body oils, or liquids. In fact, the plastic money is virtually waterproof, so the bills won't be ruined if they are left in a pocket by mistake and end up in the washing machine. Actually, plastic money can take a lot of abuse. You can bend and twist plastic currency without damaging it.
Plastic money in the Economy and Its Impact on the Speed in Economic ActivitiesNirbhik Jangid
This presentation will take you through the general introduction about Plastic Money, how it impacts the economy and economic activities. How it helps in economic growth and at what speed it's usage is increasing.
Some facts and figures are also there, you can go through.
References:
1. Moody’s Analytics report covering 2008-2012
2. RBI, Mint Research
3. Nielsen - IS THE SWIPE REPLACING THE CHA-CHING AT THE CASH REGISTER?
4. ROI Payments
Thank you.
Digital Trend in India, Changing India, Digital, Mobile, Internet , Computer 2011-2012.
Developed India, Mobile user Statistics, Internet User base and Statistics. Growing India.
New India, Digital growth of India
Data collected by vgyan.com from IAMAI, We are Social, Economic times
It is the basic concept of the digital india.. its all about what the digital india is.. about its 9 pillars its challenges its impact and its methadology..
Is the world destined to become a cashless society?CogitoMedia
The consequences of the pandemic of 2020 were quite tragic, but if we look at the brighter side, this period pushed us to develop new digital systems and progressive ideas. These digital systems included the modes of payment that we use every day now.
Since the coronavirus had properties of air-borne diseases, it was kind of impossible to pay cash in hand to people due to the fear of disease transmission and therefore, no contact, digital or cashless transactions became popular during this time. As a result of this, a new world was born where cashless modes of payment were preferred over physical cash exchanges. This evolution definitely moved us to think if we can become a cashless society. But wait, what is a cashless society? Have you thought about it?
Cash is more than a method of payment. It is a fundamental tool for individual privacy and autonomy, and it is necessary for an open society. This paper shows that a cashless economy is a surveillance economy. It also argues that removing the option to freely transact without intermediation greatly limits our economic self-determination, placing our economic lives in the hands of financial institutions and governments. This paper presents several case studies demonstrating the dangers of a completely intermediated payments system and concludes that electronic cash is a tool that should not only be tolerated, but fostered and celebrated.
The cashless direction in which the world is moving has both its advantages and shortcomings, as was clear at a recent event hosted by UK challenger bank Monzo, where speakers debated the question, ‘Is cash dead?’
The cashless direction in which the world is moving has both its advantages and shortcomings, as was clear at a recent event hosted by UK challenger bank Monzo, where speakers debated the question, ‘Is cash dead?’
W3Coins makes earning money, monitoring income, paying bills, making purchases and even transferring funds, effortless and available to everybody through the use of mobile devices and laptops.
4 REASONS WHY YOUR NATION WILL KILL CASH FOR A DIGITAL CURRENCYSteven Rhyner
Yes, I'm {talking to|speaking with|speaking to|talking with} you. Yes, I'm {talking about|discussing|speaking about} your {country|nation}, whether it is Russia, China, or the United States. The {more|even more} {modern|contemporary|modern-day} {and|as well as|and also} {advanced|sophisticated|innovative} your {economy|economic climate|economic situation}, the {faster|quicker|much faster} it is coming your {way|method|means}
5 Ways Digital Currency is Revolutionizing the Financial World.docxSurendra Gusain
Digital currency is a term that is familiar to some people and unfamiliar to others. But if you aren’t aware of it, you must get familiar with it because it has the potential to change our view on money. The recent rise in Ethereum (ETH), Bitcoin (BTC), and various other cryptocurrencies that exist in digital format only, has led global national banks to research the working of these national digital currencies. So, in today’s blog, we will shed light on the topic “5 Ways Digital Currency is Revolutionizing the Financial World” So, without wasting further time let’s get started!!
"Modern Money Mechanics" was a booklet published and distributed by the Federal Reserve Bank of Chicago, originally written by Dorothy M. Nichols in May 1961. Described as a "workbook on bank reserves and deposit expansion", the text offers a detailed description of the basic process of money creation in a fractional reserve banking system. The approach taken illustrates the changes in bank balance sheets that occur when deposits in banks change as a result of monetary action by the Federal Reserve System.
The booklet is now out of print.
Future of payments - An initial perspective by MasterCardFuture Agenda
An initial perspective on the future of payments by MasterCard. This is the starting point for the global future agenda discussions taking place through 2015 as part of the the futureagenda2.0 programme. www.futureagenda.org
What is happening with the Crypto Market. Could it be than course correction or is the bubble busting on the market? You need to answer it for yourself.
WHEN WILL DIGITAL CURRENCIES REPLACE TRADITIONAL MONEY? EXPLORING THE FUTURE OF GLOBAL FINANCE.
The advent of the digital age has revolutionized various aspects of our lives, from the way we communicate and consume media, to how we shop and even conduct our financial transactions. One prominent product of this digital revolution is the emergence of digital currencies, a new form of money that exists solely in the digital space. With the creation of Bitcoin in 2009, the concept of decentralized, digital money not controlled by a central authority entered mainstream awareness, and since then, the interest in and use of digital currencies has grown exponentially. This brings us to the central question this article aims to answer: when will digital currencies replace traditional money?
Currently pi network is not tradable on binance or any other exchange because we are still in the enclosed mainnet.
Right now the only way to sell pi coins is by trading with a verified merchant.
What is a pi merchant?
A pi merchant is someone verified by pi network team and allowed to barter pi coins for goods and services.
Since pi network is not doing any pre-sale The only way exchanges like binance/huobi or crypto whales can get pi is by buying from miners. And a merchant stands in between the exchanges and the miners.
I will leave the telegram contact of my personal pi merchant. I and my friends has traded more than 6000pi coins successfully
Tele-gram
@Pi_vendor_247
when will pi network coin be available on crypto exchange.DOT TECH
There is no set date for when Pi coins will enter the market.
However, the developers are working hard to get them released as soon as possible.
Once they are available, users will be able to exchange other cryptocurrencies for Pi coins on designated exchanges.
But for now the only way to sell your pi coins is through verified pi vendor.
Here is the telegram contact of my personal pi vendor
@Pi_vendor_247
The secret way to sell pi coins effortlessly.DOT TECH
Well as we all know pi isn't launched yet. But you can still sell your pi coins effortlessly because some whales in China are interested in holding massive pi coins. And they are willing to pay good money for it. If you are interested in selling I will leave a contact for you. Just telegram this number below. I sold about 3000 pi coins to him and he paid me immediately.
Telegram: @Pi_vendor_247
how to sell pi coins in all Africa Countries.DOT TECH
Yes. You can sell your pi network for other cryptocurrencies like Bitcoin, usdt , Ethereum and other currencies And this is done easily with the help from a pi merchant.
What is a pi merchant ?
Since pi is not launched yet in any exchange. The only way you can sell right now is through merchants.
A verified Pi merchant is someone who buys pi network coins from miners and resell them to investors looking forward to hold massive quantities of pi coins before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade with.
@Pi_vendor_247
Falcon stands out as a top-tier P2P Invoice Discounting platform in India, bridging esteemed blue-chip companies and eager investors. Our goal is to transform the investment landscape in India by establishing a comprehensive destination for borrowers and investors with diverse profiles and needs, all while minimizing risk. What sets Falcon apart is the elimination of intermediaries such as commercial banks and depository institutions, allowing investors to enjoy higher yields.
what is the best method to sell pi coins in 2024DOT TECH
The best way to sell your pi coins safely is trading with an exchange..but since pi is not launched in any exchange, and second option is through a VERIFIED pi merchant.
Who is a pi merchant?
A pi merchant is someone who buys pi coins from miners and pioneers and resell them to Investors looking forward to hold massive amounts before mainnet launch in 2026.
I will leave the telegram contact of my personal pi merchant to trade pi coins with.
@Pi_vendor_247
The European Unemployment Puzzle: implications from population agingGRAPE
We study the link between the evolving age structure of the working population and unemployment. We build a large new Keynesian OLG model with a realistic age structure, labor market frictions, sticky prices, and aggregate shocks. Once calibrated to the European economy, we quantify the extent to which demographic changes over the last three decades have contributed to the decline of the unemployment rate. Our findings yield important implications for the future evolution of unemployment given the anticipated further aging of the working population in Europe. We also quantify the implications for optimal monetary policy: lowering inflation volatility becomes less costly in terms of GDP and unemployment volatility, which hints that optimal monetary policy may be more hawkish in an aging society. Finally, our results also propose a partial reversal of the European-US unemployment puzzle due to the fact that the share of young workers is expected to remain robust in the US.
How to get verified on Coinbase Account?_.docxBuy bitget
t's important to note that buying verified Coinbase accounts is not recommended and may violate Coinbase's terms of service. Instead of searching to "buy verified Coinbase accounts," follow the proper steps to verify your own account to ensure compliance and security.
BYD SWOT Analysis and In-Depth Insights 2024.pptxmikemetalprod
Indepth analysis of the BYD 2024
BYD (Build Your Dreams) is a Chinese automaker and battery manufacturer that has snowballed over the past two decades to become a significant player in electric vehicles and global clean energy technology.
This SWOT analysis examines BYD's strengths, weaknesses, opportunities, and threats as it competes in the fast-changing automotive and energy storage industries.
Founded in 1995 and headquartered in Shenzhen, BYD started as a battery company before expanding into automobiles in the early 2000s.
Initially manufacturing gasoline-powered vehicles, BYD focused on plug-in hybrid and fully electric vehicles, leveraging its expertise in battery technology.
Today, BYD is the world’s largest electric vehicle manufacturer, delivering over 1.2 million electric cars globally. The company also produces electric buses, trucks, forklifts, and rail transit.
On the energy side, BYD is a major supplier of rechargeable batteries for cell phones, laptops, electric vehicles, and energy storage systems.
what is the future of Pi Network currency.DOT TECH
The future of the Pi cryptocurrency is uncertain, and its success will depend on several factors. Pi is a relatively new cryptocurrency that aims to be user-friendly and accessible to a wide audience. Here are a few key considerations for its future:
Message: @Pi_vendor_247 on telegram if u want to sell PI COINS.
1. Mainnet Launch: As of my last knowledge update in January 2022, Pi was still in the testnet phase. Its success will depend on a successful transition to a mainnet, where actual transactions can take place.
2. User Adoption: Pi's success will be closely tied to user adoption. The more users who join the network and actively participate, the stronger the ecosystem can become.
3. Utility and Use Cases: For a cryptocurrency to thrive, it must offer utility and practical use cases. The Pi team has talked about various applications, including peer-to-peer transactions, smart contracts, and more. The development and implementation of these features will be essential.
4. Regulatory Environment: The regulatory environment for cryptocurrencies is evolving globally. How Pi navigates and complies with regulations in various jurisdictions will significantly impact its future.
5. Technology Development: The Pi network must continue to develop and improve its technology, security, and scalability to compete with established cryptocurrencies.
6. Community Engagement: The Pi community plays a critical role in its future. Engaged users can help build trust and grow the network.
7. Monetization and Sustainability: The Pi team's monetization strategy, such as fees, partnerships, or other revenue sources, will affect its long-term sustainability.
It's essential to approach Pi or any new cryptocurrency with caution and conduct due diligence. Cryptocurrency investments involve risks, and potential rewards can be uncertain. The success and future of Pi will depend on the collective efforts of its team, community, and the broader cryptocurrency market dynamics. It's advisable to stay updated on Pi's development and follow any updates from the official Pi Network website or announcements from the team.
US Economic Outlook - Being Decided - M Capital Group August 2021.pdfpchutichetpong
The U.S. economy is continuing its impressive recovery from the COVID-19 pandemic and not slowing down despite re-occurring bumps. The U.S. savings rate reached its highest ever recorded level at 34% in April 2020 and Americans seem ready to spend. The sectors that had been hurt the most by the pandemic specifically reduced consumer spending, like retail, leisure, hospitality, and travel, are now experiencing massive growth in revenue and job openings.
Could this growth lead to a “Roaring Twenties”? As quickly as the U.S. economy contracted, experiencing a 9.1% drop in economic output relative to the business cycle in Q2 2020, the largest in recorded history, it has rebounded beyond expectations. This surprising growth seems to be fueled by the U.S. government’s aggressive fiscal and monetary policies, and an increase in consumer spending as mobility restrictions are lifted. Unemployment rates between June 2020 and June 2021 decreased by 5.2%, while the demand for labor is increasing, coupled with increasing wages to incentivize Americans to rejoin the labor force. Schools and businesses are expected to fully reopen soon. In parallel, vaccination rates across the country and the world continue to rise, with full vaccination rates of 50% and 14.8% respectively.
However, it is not completely smooth sailing from here. According to M Capital Group, the main risks that threaten the continued growth of the U.S. economy are inflation, unsettled trade relations, and another wave of Covid-19 mutations that could shut down the world again. Have we learned from the past year of COVID-19 and adapted our economy accordingly?
“In order for the U.S. economy to continue growing, whether there is another wave or not, the U.S. needs to focus on diversifying supply chains, supporting business investment, and maintaining consumer spending,” says Grace Feeley, a research analyst at M Capital Group.
While the economic indicators are positive, the risks are coming closer to manifesting and threatening such growth. The new variants spreading throughout the world, Delta, Lambda, and Gamma, are vaccine-resistant and muddy the predictions made about the economy and health of the country. These variants bring back the feeling of uncertainty that has wreaked havoc not only on the stock market but the mindset of people around the world. MCG provides unique insight on how to mitigate these risks to possibly ensure a bright economic future.
1. The
Cashless
Society
Paper compiled and presented by:
Sayani Banerjee 11/CS/93
Anshuman Mahanty 11/CS/23
‘’An idea to make all our payments and transactions go digital, making
currency notes and coins a thing of the past…. ‘’
The End of
Cash and Our
Economic
Future
2. --------------Contents-----------------
Title Page No.
Abstract 1
Introduction 1
The Current Money System
And It’s Drawbacks 2
Possible Impacts Of A Full 3-4
Cash Abandon
How To Remove All The Cash 4
From The Economy?
Current Advancements Towards
A Cashless Society 5
A Simple Working Model- The Card
And Points Model 5-7
Management of The Card And
Points Model 7
Advantages of The Card And
Points Model 7-8
Challenges And Limitations To The
Card And Points Model 8
Solutions To Overcome The Challenges 9
Applicability of the model 9-10
Conclusions 10
Bibliography & References 11
3. Abstract
The objective of this paper is to dissect the current monetary system of paper
currency and coins and to devise a model that overcomes the shortcomings of cash.
As the global economy unknowingly ventures into a time when everything becomes
cashless, we discuss how the coexistence of cash with plastic money serves little
and rather a meaningless purpose. With the help of technology, a completely
cashless economy isn’t as far from us as one expects. The paper recommends a
cashless society in wake of the negative and fraudulent practices that are associated
with cash, something that can be fixed by adopting a new, smart, innovative and
hassle-free model that simplifies the exchange of money without attaching any
tangibility to it.
Keywords: Cashless, central bank, exchange rate, transaction, biometric card,
UID
Introduction
Akin to the proverbial fish that has no idea of what water is, we swim in an economy
built on money in the form of currency notes and coins, a monetary system that only
a few of us are fully able to comprehend.
There goes a cliché about change being the only thing that is constant. We see
change in almost every sphere of life surrounding us. Trade and exchange of goods
and services has also come a long way from the times of the barter system to the
modern currency system. Despite the fact that a transition to a cashless society is
already happening, there is reluctance among the high echelons of power to switch
over to the completely cashless economic system as it decentralises the power from
their hands. However, big banks and credit card companies are likely to be ardent
supporters of this revolutionary idea.
While at first impression, a complete doing away with money in the form we know it
might seem to be a very far-fetched idea but it feels so only because we are
accustomed to transactions being done through cash. In reality, in countries like the
United States and Sweden, transactions involving cash only account for 7 and 3 per
cent of the total transactions respectively. Some economies have already tried out a
small-scale cashless model using RFID microchips and digital coins. In a nutshell, a
cashless economic system is much closer than most people would imagine.
4. The Current Monetary System and It’s Drawbacks
Most economies in the world have a central bank or an authority that reserves the
right to manufacture paper and metal currency and is responsible to assure the
bearer of it’s assigned value. While this might come across as a fairly easily
understandable system, there is a lot more that goes into ‘money creation’. The
amount of cash in an economy at any instant is guided by the market forces of
demand and supply and the central authority in charge regulates the flow of cash
into (or out of) the market.
Cash, however, is only the physical instantiation of money. The reason why cash has
been a popular form of exchange for such a long time is because of the tangibility
that it provides to the entire idea of money. But does money really need to have a
physical form that people could identify with?
Perhaps not.
The reason being that money in the form of cash has more that it takes away from us
than it gives us. Outlined here are some major drawbacks of cash-
At an individual level, cash is inconvenient to carry and manage. It
cannot be traced or insured as cash once lost or stolen cannot be
recovered.
Cash is expensive to print, inspect, move, store and guard.
Counterfeiting is always going to be a problem as long as paper
currency exists.
Hand-to-hand currency is favoured by criminals as it does not leave a
paper trail.
Cash transactions are not trackable in nature, thus providing no
transparency. This leads to corrupt practices and financial crimes such
as excessive money laundering.
Monitoring of tax compliance is difficult for the Government.
High cash usage results in a substantial amount of money outside the
formal economy, thus stunting the effectiveness of policies aimed at
managing inflation rates.
From a global perspective, the economic growth imperative inherent in
the current monetary system plays a major role behind global warming
and other environmental crises.
In wake of the issues highlighted above, some governments are already viewing the
use of cash in a negative light. In fact, according to the U.S. Government, cash
payments are now thought of as ‘suspicious’ activity that needs to be reported to the
authorities.
5. Possible Impacts of a full Cash Abandon
Removal of currency notes and coins is likely to be the biggest monetary reform
since the inception of the former itself.
Banks are likely to be in favour of a cashless society as it saves them
the cost of printing, inspecting, storing and guarding ‘paper’ money.
Costs also include the security and labour involved in processing and
transporting cash, maintaining automated teller machines, and
regulating the amount of cash in circulation. According to an estimate,
European banks could save between €45bn and €90bn annually if they
get rid of cash from their systems.
Prohibition on the use of cash could restrict criminals such as drug
dealers and people involved in possible unregistered activities like
prostitution and betting from doing business.
Eliminating cash could also mark an end to bribery and other such
corrupt motives as authorities would be able to track virtually all
transactions. Tax crimes would also stop.
Restriction on the possession of currency would remove the ‘zero
nominal bound’ as a constraint on counter-cyclical monetary policy.
According to a study by Wolman, countries could save about 1 % of
their GDP annually by switching over to ‘electronic’ currencies.
Every reform has some pros as well as cons. There are more than a few challenges
to our proposed cashless system, which are as follows-
People still rely on the idea of money being ‘physically’ realisable. For
some psychological reason, ‘paper’ money is revered more than
‘plastic’ money or ‘digital’ money. Cash keeps a check on people’s
spending habits.
Anything that’s technological comes with a baggage of risks and
security threats. A very high and unbreachable degree of security
would be needed as a deterrent to hackers and cyber criminals.
The idea of a cashless society won’t be readily popular among a
certain section of our demographics. While a user-friendly model might
not necessarily require consumers to be tech-savvy, there would still
6. be some sort of digital awareness required to understand the working
of a society with no cash. People who have grown up and lived through
times when a substitute for cash wasn’t even thought of might face
some difficulty in adjusting to a world without currency notes.
All the existing cash in the world cannot be removed or deemed
‘abandoned’ at one go. Also, when it comes to money, reassurance is
the thing that matters most. For a complete switch-over to the new
monetary model, the voluminous amount of cash presently circulating
in the market would have to be converted into an equivalent number of
‘digital’ points.
Developing economies have an added challenge in the form of high
levels of illiteracy among the masses. For example, in India itself, there
are large sections of rural population who haven’t seen a bank in their
lifetimes, let alone owning a bank account. The only way they
recognise money is through currency notes and coins.
An ideal cashless economy should look to incorporate all the benefits of a digital
monetary system and to find solutions to the aforementioned challenges, in order to
achieve wide acceptance among the people who earn, spend and consume.
How to remove all the cash from the economy?
There are many possible ways of going about this but an outright prohibition on the
use of cash is certainly not going to work. Rather, the central bank or authority could
‘tax’ the use of cash, leading to the value of the paper currency depreciate relative to
the reserves, say by 10% annually. By managing the exchange rate between
currency and reserves and pushing it further, the central bank could remove the
‘zero lower bound’ and tax the use of currency, which would thus tax the criminal and
anti-social enterprises that largely rely on currency.
So a full restriction on the use of cash could be seen as a limiting version of mildly
extreme policies that tax currency by allowing it’s value to depreciate relative to bank
reserves.
When the exchange rate between currency and reserves becomes large enough,
cash in the economy would cease to exist.
7. Current Advancements Towards A Cashless Society
The first and the foremost pre-requisite for building an economy having no cash is to
have every single entity, whether an individual or a small-scale or a large-scale firm,
to be registered under unique IDs. This can be achieved biometrically, as has
already been done in India with the advent of the Government’s UID scheme named
‘Aadhar’. And already, nearly 40 million bank accounts in India have been linked with
Aadhar. Such feasible and low cost biometric systems could easily support electronic
payment systems which could replace the current hand-to-hand currency system.
In Nigeria, another developing economy, the Central Bank has launched a ‘Cashless
Nigeria’ Project whose objective is to reduce the usage of cash in transactions as far
as possible.
The use of EMV chip-cards is gaining momentum in Kenya and other countries in
Eastern and Central Africa. When used with a PIN (Personal Identification Number),
the chip verifies that the customer is producing his or her own card and only then
authenticates the transaction. This has reduced incidences of credit/debit card fraud
and helped in establishing faith in electronic payment systems among the masses.
Just recently, Master Card and Equity Bank unveiled a joint partnership that plans to
distribute 5 million EMV chips and PayPass enabled cards in Kenya over the next 18
months.
Far away in Canada, the Royal Canada Mint is looking to the future with the
MintChip, a new and innovative product that could become a digital replacement for
coins.
A Simple Working Model- The Card And Points Model
While in idea, this isn’t very different from the way debit cards and credit cards work
but in practice, this model integrates the biometric identification of each customer
with his/her account that stores points which could be credited or debited as and
when required.
The Biometric Monetary Card
The card could be electronic in nature wherein you feed the unique ID of anyone
you’re buying a good/service from and also key in the amount of points that you owe
to him. That particular amount of points is then deducted from your balance and
added to the service provider’s balance.
To ensure that a card is being used only by it’s rightful owner, we could have
passwords similar to the ATM pins that we have currently. An even less hassled
authentication system could use the details of your biometric data- facial definitions,
finger-prints, retinal scans and voice files to build your password. The latter will be
more suitable for illiterate people to do transactions.
8. The Points
To put it simply, ‘points’ in our model are basically the replacement for cash money.
Analogous to how cash works, points could be debited or credited from one’s
account depending on the transactions performed. Since points will not have any
physical existence, they will be far more reliable against stealing, burglary or any
other such loss.
The worth of goods and services will be judged on ‘points’ similar to how it works in
the modern monetary system.
Common Transaction Machine
Since the electronic card methodology prescribed above needs a lot of technological
groundwork and digital awareness among common people, a better system for a
start should be to have simple transaction machines similar to card swapping
machines that we now only see in sophisticated retail stores. Such transaction
machines would only be given to business owners or in retail markets and not for
personal use.
Such a machine would accept the biometric monetary card for payments and
transfers, authenticate the card after receiving it’s password and then allow ‘point’s
to be transferred from one individual to another. An extensive database that stores
and updates the point balance of each registered individual would also be needed to
be built. The update would have to be instant in nature.
Point Transfer
Since for a transaction between two individuals, i.e. third-party transfers, the
common transaction machine would not be available, such an exchange could be
done through either an electronic biometric card or a separate automated machine
wherein your card is to be inserted following which it asks for your password. After a
valid authentication, the lender inputs the unique ID of the borrower along with the
number of points that he/she wishes to transfer. After the transaction, the point
balance of both the parties involved is updated.
Alternative Techniques
Given the ever-increasing accessibility to cellphones in India, cellular technology can
also be used to make the third-party transfers simpler. Funds could be transferred on
the go by simply keying in the unique ID of the third party and the number of points
to be transferred on your mobile phone. Some telecom networks like Airtel have
already tried out some cashless transfer techniques wherein one user can transfer a
fraction of his mobile balance to some other user on the same network.
The card-and-points model could thus help in facilitating the exchange and flow of
money, or rather points in the economy without attaching any physicality to the whole
9. idea of money. As the monetary system becomes digital, people would become
more and more assured of the reliability that ‘points’ hold over paper currency. You
can never lose or misplace your points, something that is quite common with paper
currency.
Management of the Card and Points Model
In case of cash, a central bank reserves the rights to issue paper currency in the
market. But in our cashless model, the power will be distributed between the central
bank and the other smaller banks. The central bank is to be held responsible for the
supervision of the point issuing institutions. By supervision, we mean the control of
any activity which might interfere with monetary variables or with the sound
functioning of the monetary system.
The role of the central bank as a supervisor should not only be limited to
microeconomic criteria to certify the quality of the point-issuing institution. In a
cashless society it should also use macroeconomic criteria to guarantee the quality
of the point issue. The use of macroeconomic criteria will be crucial precisely
because the central bank will have lost most of its traditional instruments to influence
macro-economic variables such as the money stock and the interest rate.
Our card-and-points model thus distributes power equally among all the banks and
monetary institutions while still retaining the centrality and the authority of the central
supervising bank. A major advantage that this system has is in the case of fraudulent
private money-making schemes and chit funds that betray investors. Under a
cashless system, they would lose all power to circulate currency and their activities
would also be easily trackable as every point exchanged would be registered, unlike
in cash payments which have a high level of anonymity associated with them.
Advantages of the Card-And-Points Model
Following are the benefits of this model over the current monetary system-
All transactions being through a single card, people won’t have to face
the burden of carrying cash with them, making the exchange system
more hassle-free.
A digital system of payments ensures more security. ‘Points’ are more
reliable and less vulnerable to be stolen or misused in any form as
compared to notes and coins.
The false bill problem will be redressed. Bribery or corruption in any
form is likely to be rooted out from the scratch.
10. Exact payments could be done without people having to worry about
‘change’, a problem that is quite common in the cash system.
Tax dodgers and criminals will lose out as with the points model, their
every transaction will be tracked.
According to Arvidsson’s analysis, the primary stakeholders, i.e. banks and
businesses would be the biggest beneficiaries in a society with no cash. He also
goes on to say, “It is first and foremost small businesses that risk having problems if
the cash system is phased out - but given the competition between payment service
providers and the lowering of fees, even small businesses will stand to see some
benefits.”
Challenges and Limitations to the Card-And-Points Model
To lay down each and every facet of our model is undoubtedly going to be a very
tough task. Particularly in a developing economy like India, there are going to be a
few hurdles in our way such as-
Having grown used to seeing money in ‘paper’, people at first are likely
to not warm up to the idea of a single card handling all of their
transactions. Plus, there’s a large section of our demographics that
isn’t just aloof from technology but even has some sort of a phobia
towards it.
The system would need good and reliable emergency backups. People
would need to be able to pay even during power cuts, link failures or
even when electronic systems get crashed or hacked. Currently cash
payment is the only system that never fails.
Lack of network access in remote corners and far-way rural hinterlands
is a major challenge towards establishing a fully digital monetary
system.
For this new monetary system to be successful, every player involved
in it shall see some benefit to adapt to it. While Governments and big
banks would prefer an economy that goes cashless, small businesses
might perceive a cashless economy as something that risks their very
existence.
The biggest challenge towards establishing a card-and-points model in
a developing country like India is illiteracy and the lack of awareness.
As of now, only a small share of our transactions are done through
‘plastic’ money. Payment through debit/credit cards is still seen as
something very urban. For our cashless model to be successful we
don’t need everyone to be tech-savvy but a little level of compatibility
with digital mechanisms is expected.
11. Solutions To Overcome The Challenges
There needs to be a high-speed network access even in the remotest nook
and corner of the country. A high-speed internet and a high-security biometric
database are pre-requisites for establishing this model at ground level.
Technological awareness needs to be created among people so that they
warm up to the idea of this model readily.
There has to be incentives for all parties involved so that no one is robbed of
his/her right to purchase and sell. Small businesses and banks should not feel
done with under this new system. They should be made to be feel empowered
by having their own right to issue and manage ‘points’.
Applicability of the model
Is our model feasible for a developing economy right now?
Perhaps not but a few years down the line, when technology seeps deeper into our
society and when more and more people become aware of how getting rid of cash
saves their money from being vulnerable, the card-and-points model could be tried
out. The phasing out of all the cash that is in circulation now should also take a fair
bit of time.
Meanwhile, we can work towards making this future model more and more feasible
and foolproof so that our economy switches over to this new system wilfully and with
little to worry about.
The groundwork can be laid first in the metropolises and big urban centres. From
there on, the transition could be taken forward into smaller cities and towns and then
into the rural areas of the country.
In the future, it is inevitable that national governments and big financial institutions
will want to have all of us transition over to using biometric identity systems in order
to combat crimes and frauds in the financial system. As hackers employ new
techniques for identity theft, our biometric system needs to be guarded against any
possible malpractice.
Only when we are technologically and psychologically ready to welcome this change,
can the model be considered to be applicable and ready to replace money in the
form of paper currency and metal coins.
This model can be given a green signal in the developed economies now itself. Most
developed countries are unknowingly switching over to a largely cashless economy
anyway and cash serves little purpose in their day-to-day lives. Even the most basic
12. of transactions, such as the ones at the petrol station or at the food store, are now
carried out with the help of debit and credit cards instead of cash. Such economies
are ready for the ‘points’ or ‘virtual money’ to usher in and bring a revolutionary
change in the way people define or know money.
Conclusions
It can thus be concluded that with the increasing popularity of transactions through
cards, cash is slowly but surely expected to die a natural death. In a world where
payments go online, cash serves very little purpose apart from creating a burden on
the State. Doing away with cash addresses a very wide spectrum of problems,
starting from counterfeiting, money laundering and bribery to tax dodging and
criminal businesses.
While a cashless economy might take some time to get fully realized, it is something
that’s surely coming our way in the near future. Like everything else, a cashless
society has it’s own set of pros and cons. But the positives that we can get out of it
outweigh any negative impact that it might have.
The distribution of power between a central bank and the smaller banks is an
important aspect of the model proposed in this paper. The role of the central bank as
a ‘money-maker’ would cease to exist and its new found role would be to supervise
the smaller parties who get enabled to be a part of the money, or point-issuing
process. A switch over to the cashless economy thus decentralizes the power from a
central hand at the top of the hierarchy, which is what is needed.
Overall in a nutshell, a cashless society has an innumerable number of benefits over
the current monetary system. The paper currency stays on because it is the only
form of money that is built in our psyche. The future generations though will live
through a time when the idea of money creates an image of credit and debit cards
inside their head. That will be the time when cash will have to give way to a world
where exchange will take place as it does now, but without the money being visible
to us. Exciting, isn’t it?
13. Bibliography and References
1. The End of Money: Counterfeiters, Preachers, Techies, Dreamers And The
Coming Cashless Society ~ David Wolman
2. The Coming Cashless Society ~ Thomas Ice, Timothy J. Demy
3. www.cenbank.org Official Website of the Central Bank of Nigeria
4. www.urbanizationproject.org