Cashless Society

About Cashless Society

The shift toward a cashless society accelerated during the COVID 19 pandemic. Sweden is the closest large economy to cashless, with cash transactions falling below 10 percent of payments. Norway and Finland are similar. China has largely gone cashless through WeChat Pay and Alipay. The UK saw cash use fall by 60 percent during COVID. The transition has benefits: reduced crime, lower costs, and improved tax collection. But it raises concerns about financial exclusion of the elderly, poor, and rural populations. Privacy advocates worry about every transaction being traceable. Power outages and cyber attacks become existential threats in a cashless society. Central bank digital currencies are partly a response to the cashless trend, ensuring public access to central bank money.