The Digital Age smartphone are changing society at all levels. Is it possible to live without coins and notes?
How old are we talking about cashless society? Where all transactions are done digitally. No country in the world has come true yet, but many are fast approaching due to the disruption generated by smartphones.
The best example of this are the northern European countries, especially Sweden, where specialists in industrial technology at the Royal Institute of Technology in Stockholm have posted a study showing how quickly are disappearing cash payments in the country. “The percentage of use of money is very low and is declining rapidly,” says one of the study authors
The team has calculated -. Within its capabilities – there are only about 80,000 million crowns Swedish (about 8,000 million) in circulation between purses and cash registers. Six years ago there were 106,000 million. And most importantly, according to the authors, only 50% of that figure is truly in regular circulation.
In the main cities of the country is almost impossible to find an establishment that does not accept credit cards or debit , indeed, there are many places that do not have cash. Many citizens use applications to transfer money through their smartphones. Smartphones are not only the main gateway to communicate, but to perform almost any management. Even financial.
Four out of five purchases in Sweden are paid by new electronic systems or debit and credit cards. Swedish utilizan their cards to pay almost daily, an average of 260 transactions per year per person.
And this is the beginning. With leading technology companies driving their payment technologies through smartphone and SmartWatch have another case where comfort is set to normal as quickly. Pay Mobile will surely equally common to take the portfolio in the coming decades.
For tax and police officials change is for the better. Many recently opened new banks do not accept cash, and those who do often ask where the money comes from, to preserve the regulation made towards preventing money laundering and financing terrorist groups. Any suspicious cash transaction is reported to the police.
There are also concerns about it, it is that not all advantages , or a world without cash is as utopian as one might believe. Poorer people – homeless usually – do not have access to bank accounts and maybe even a smartphone. In a cashless society’s most vulnerable it would be even more. Something that would be even more serious where social systems were not as “generous” as in more developed countries, such as Sweden
In Denmark -. One of the most prosperous countries of the old continent – is propuso in May a new law that many see as the dawn of a monetary revolution in first world countries, a first step out the realization of economic systems and ending with bank accounts as they were conceived decades.
The proposal would allow Danish businesses refuse to accept cash payments for goods and services, accepting instead only electronic transactions. Something that in theory might not seem very important because it’s the everyday debit cards. The proposal has a clear rationale: eliminating administration and financial constraints linked to the cash as the entry of large amounts of banknotes, the Danish economy is stimulated. For others it is more important to see the proposal as one of the first big steps for coins in circulation without economic system.
In his words, as stipulated in the Swedish study, the main premise for change is the reduction of crime . Illegal companies base their business on the use of cash in order to avoid bank records and other tax agencies track.
Another of the affected activities would be the traffic drugs and money laundering , so it would be difficult to transfer large sums of money without good cause. Scams and theft also be reduced because it is much easier to rob a supermarket vulneral the security of a banking system.
The main advantage is convenience. The convenience has always been tax in the history of mankind. Remove your smartphone and pay through your fingerprint have too many arguments in its favor as to believe that will not be imposed to conventional payment. To bring your wallet and count coins. To get money from the cashier when there is none nearby.
October 15, 2015
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