Just check your pockets. In all likelihood, you are carrying much less paper money now than you used to several years ago. Today we witness a truly fast and huge change towards a totally cashless society all around the world. With the usage of QR-code payments for purchases from vendors in the streets and payment by means of smartwatch on public transportation, our lives became fully dependent on digital wallets and mobile banking.
While the change brings a lot of convenience such as having no need to carry heavy coins with yourself, the absence of need to wait for any change, and ability to monitor all transactions in time, there are also many aspects that have to be faced.
The disappearance of paper money from our lives completely changes the nature of the psychological perception of expenses. While paying by plastic card or even phone screen is less painful and more natural, it makes people spend extra without realizing the sum until the end of the month.
Moreover, there are some serious structural questions arising out of the digitalization of the financial system:
Exclusion: What about the older generation and those parts of population who completely rely on cash money and are unable to use mobile phones?
System Failure: In case of total failure of any Internet connection or computer network of banks, the whole economy of the city will stop to operate.
Data collection: With each transaction becoming digitalized, the companies will get a full opportunity to track everything about one's lifestyle through their database.
This way, the world is becoming increasingly closer to the point when cash money will become a thing of past. This step forward in technology is truly a masterpiece; however, we should make sure that it will be stable and available to everyone.
Are you living in the cashless city already?
