Technological evolutions aim to revolutionize each aspect of our daily lives dealings. The globalization process has been immensely facilitated with the use of secure networking technologies and integrated financial platforms. The new trend that the authorities are working towards is the cashless economy.
It might be all started when the first virtual cryptocurrency Bitcoin was introduced in 2009. People largely were then introduced to holding digital assets and got involved with online trading. The trading platforms such as the bitcoin champion app have also evolved making the virtual economy a force on its own.
Benefits of Cashless Economy
If authorities successfully implement the concept of a cashless economy, you wouldn’t be needing hard cash to carry around. Payments would be made through banking systems, digital wallets, and other modes for online financial transactions. This would outdate the need for a physical wallet too and you can roam around freely with your mobile being a money holder for you.
The main advantage of this lies with the regulatory authorities. Tracing down cash-based transactions is humanly impossible at a governmental level, and making things transparent at each level stays their primary responsibility. If we were to move towards a cashless economy, holding black money would become quite a difficult job.
The countries where corruption remains a poison to their economies, this can help to address this problem effortlessly. Moreover, with the backing of Artificial Intelligence and Machine learning, financial transactions can be analyzed and monitored in real-time to reduce any sort of threat to the financial systems. Financial regulators are working relentlessly within this domain to address the new rising problems in managing this.
For your personal security concerns also, a cashless economy brings colossal benefits to the table too. Your spouse or children won’t be stealing in cash from your wallet or any robbery attempt wouldn’t be relevant anymore. If you haven’t been experiencing the use of technology platforms, you would become aware of it and gradually increase your level of digital literacy.
Discussing the cons of a cashless economy
It may seem like a mountain to climb at the moment for this kind of technological makeshift. Strapping the economy of physical cash wouldn’t be an easy step as people who are not aware or trained would be found at a no man’s land. Nigeria’s literacy rate roams around 60%, so it would create obvious problems for the rest of the population.
A cashless economy leads to the need for high-end technological gadgets. For everyone to make the most of these modern systems, they need to have the latest technological gadgets along with ensuring an internet connection whenever there is a need to perform a financial transaction. If any of the requirements go out of order, you wouldn’t be able to indulge in any of the physical buying or selling.
Also, withdrawal fees stand at quite a higher percentage than people are normally used to paying. Although, people have transformed their lives to a great deal and added much-needed convenience with the use of these digital wallets and online banking systems. Still, it would take a great deal of time before we can say that we exist in the environment of a cashless economy.
People need to be aware of both its pros and cons before they move towards this adaptation process. Necessary training needs to take place at a massive scale level to ensure each of the stakeholders at minor levels too is on-board with these evolving systems. The systems also need to prepare themselves to handle the growing traffic over their networks and ensure the integrity of transactions taking place at each second.
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