Technology should be a force for convenience and not a force to make people invisible. But I don't think cash should go on the scrap heap.
It appears that we get closer to a cashless society every year. We use our phones to pay our bills, transfer funds with only a few taps, shop online, even buy food without touching a banknote.We pay bills with our phones, we transfer funds with just a few taps, we shop online, even purchase food without touching a banknote.
That seems like a step forward on the pages of a book.
But, in truth, I'm not sure the solution is just plain as black and white.
In my view, I like digital payments. They are quick, safe and don't require a lot of cash. I can send money to somebody hundreds of kilometres away within seconds from the comfort of my own home. Digital transactions also provide businesses with improved record keeping and simplified accounting.
That's a plus that we can't overlook.
But I don't think that governments should phase out the physical currency completely.
From Africa I know that millions of people still rely on cash, daily. Not all people use cell phone. Not all people are able to use the internet. There are communities that are not near the banks and others that have unreliable electricity and network coverage.
Now imagine purchasing food in an area without a network when there is no longer any cash at all.
What if banking systems lose internet connection for several hours?
What if your phone is stolen or you get a banking app bug?
Many people, without cash, would suddenly be unable to perform the most basic of everyday activities.
This isn't the first time we've encountered such a thing. When banks failed or networks were down, the businesses were not able to operate as transfers were not confirmed. Why customers were seen standing line in stores with their hands outstretched, was not due to lack of funds, but to lack of access.
I can't stop thinking about the need to have cash on hand after reading that experience.
Another concern is privacy.
All digital transactions have a record somewhere. This reduces the extent of fraud or financial crime, but it also makes it easier to monitor our spending. Not all users may feel comfortable with all purchases being a permanent digital footprint.
Cash, however, still provides some financial privacy that is important to some people.
Can't say anymore that we should be against digital payments though.
Indeed, governments need to keep investing in secure payment systems, digital literacy and financial inclusion. As digital payments become more convenient and more secure, the more and more people will do it naturally and without a push from anyone.
The objective should not be to get rid of cash.
The aim should be to provide citizens with an option to pay in the way they prefer.
In time, society could naturally become less reliant on monetary mediums.
In a rush to speed that transition up too quickly, however, it might be the very people technology is intended to assist that are left behind.
My vision for the future does not involve the end of money.
It is one in which digital payment is trusted, available, affordable and reliable – not one in which people are forced to make a digital payment.
Progress should include everyone.
Because a truly modern financial system isn't measured by how little cash we use.
It's measured by how many people it successfully serves.
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