Cashless Society Pros And Cons

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Cashless Society Pros And Cons

Thanks to the use of credit cards and biometrics, there is a very real possibility that the world is moving towards a cashless society one day. Although cash is still an integral part of daily life, many high-tech firms and financial organizations are looking for ways to replace cash with wireless payments that may even help prevent identity theft because of being tied to a person’s unique physical makeup. There are definitely some pros and cons to this practice, so let’s take a look at the subject today.

Here Are the Pros of a Cashless Society

1. There would be added security protocols.
We’ve already seen how enhancements in credit card technology can stop identity theft. Chip and PIN combinations have already contributed to lower fraud rates in areas where implementation is nearing 100%. A cashless society would simply take this technology to new levels because biometric identification is very difficult to copy.

2. It would be much more convenient.
With a cashless society, there would no longer be the need to carry credit cards or cash. Digital payments could be made using a variety of different technology options. It would also be easier to lend money or borrow it because payments could be instant.

3. Lost cash or credit cards would become a thing of the past.
Even with today’s digital wallets, it is extremely easy to shut them down if it is believed that they have been compromised. A cashless society would be able to do the exact same thing. One digital wallet could be closed and another could be opened instantly, protecting a person’s data.

Here Are the Cons of a Cashless Society

1. There is a higher exposure to hacking.
With all of your wealth online or in a digital format, hackers would be able to access all of your tangible assets with just a few keystrokes. Technology companies like to say that digital wallets are more secure than cash or credit cards, but it has been proven that they can be hacked if just a little personal data is known.

2. Biometric identification is not a reliable technology.
In studies that have looked at the feasibility of biometrics, about 1% of people are unable to enroll in any valid biometric system that has been developed so far. Although that percentage might seem small, about 3.5 million Americans would not be able to accept their cash in the proposed cashless society.

3. If the technology quits, you can’t pay.
Many of the proposals for a cashless society involve digital payments from a phone. What happens if that phone runs out of its battery? A person suddenly loses all access to their money. They wouldn’t be able to pay for anything unless they could find the charger for their phone. In remote areas, that may not be feasible to implement.

The idea of a cashless society is one that looks good on paper. It limits theft while still providing the average person with instant access to their money. By weighing the disadvantages together with the advantages, each society can determine if this is technology that should be pursued.