Will the US go cashless?
Cash is still alive and well, and no pandemic can take it down. Like it or not, there are plenty of people who like and rely on using dollar bills. And as long as those people are around, no, we won't be moving to a cashless society anytime soon.
When Will Society Become Cashless? While it's impossible to accurately predict when the US will move to a fully cashless society, a Gallup survey reveals that 64% of Americans believe that all payments will become electronic at some point in their lifetime, with the figure jumping to 70% for those under 50.
A cashless future enabled by technology
We may not be a cashless society by 2060, much less by 2030. But the fact is we're closer to becoming a nearly cashless society every day. The transition from a mostly cash to nearly cashless society didn't happen overnight.
With a date set in 2023 to go completely cashless, Sweden is arguably the closest country to achieve this. It is currently not uncommon to see signs that say “No Cash Accepted” in various shops in Sweden.
Ultimately, cash may in fact disappear. But it's mostly a question of where and when. While it may disappear in some countries, it might remain in others. And if it ultimately happens in 50 or 100 or more years, it won't matter much to anyone who's alive today.
The Drawbacks of a Cashless Society
Without cash, we would be forced to leave a record of everything we buy. While this may not bother some, there are many who worry that governments and/or corporations could use our purchasing histories as a way to track us, monitor us, and even intimidate us.
We have been issuing banknotes for over 300 years and make sure the banknotes we all use are of high quality. While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon.
One widely quoted report predicts that the global transition from cash to digital will reach a tipping-point in 2025, and the pandemic, in which contactless payments surged, has only exacerbated this trend.
Commonwealth Bank, ANZ, NAB and Westpac all confirmed on Friday that there are no current plans to go cashless. This comes after Macquarie Bank announced it would phase out cash and cheque services across all its banking and wealth management products from January to November 2024.
China may become the world's first cashless society with new, evolving technology. A 2022 survey revealed that an estimated 911 million people in China paid for items through their mobile devices, with numbers increasing rapidly after Covid-19.
Which country is 100% cashless?
Norways is the most cashless country, with only around 2% of payments being made by cash, and 100% of the population having a bank account.
A cashless society runs totally on a government-backed digital currency. And while no societies are 100% cashless at the moment, some countries, like Sweden and China, appear to be headed that way.
Other anti-cashless countries in our analysis include Belgium (where 47.23% of tweets are negative), Italy (46.62%) and the Ivory Coast (43.07%). Despite more than 23 million people in the country barely using cash in 2021, the UK (29.30%) is also fairly anti-cashless, according to our analysis.
Reasons people keep cash at home include emergency preparedness, financial privacy concerns and mistrust of banks. It's a good idea to keep enough cash at home to cover two months' worth of basic necessities, some experts recommend.
Analysis from Barclays Investment Bank, meanwhile, predicts that the global transition from cash to digital payments would reach a tipping point moment in 2025, when absolute cash usage would decline from 41 per cent in 2019 to 20 per cent by 2030.
While it may be tempting to stash your money in cash, cash doesn't outpace inflation in the long term. “When we look at cash equivalents, it's very difficult to beat inflation long term by parking lots of capital in those types of accounts,” says Ashley Weeks, Vice President and Wealth Strategist at TD Wealth.
A cashless society offers a range of benefits such as convenience, transparency and stability. However, there are concerns about financial exclusion , privacy and security. It has been suggested that disadvantaged groups are most likely to be disproportionately affected by the transition away from cash.
Cashless society: disadvantages
Rural communities could also be left vulnerable, because of poor broadband and mobile connectivity. People with low income or debt tend to find cash easier to manage too. Another potential disadvantage concerns security.
Data security - many people are concerned that their financial information may be compromised in the digital environment. Concerns about hacking, identity theft and other cybercrime. Lack of physical control - often managing money in cash gives people a tangible sense of control.
A cashless society is a concept in which money changes hands through digital means rather than physical banknotes or coins.
What will replace money in the future?
The future of money is expected to be heavily influenced by technology. Predictions include the rise of cashless societies, the growth of cryptocurrencies, the continued adoption of digital currencies, and the potential offering of a Central Bank Digital Currency (CBDC) by governments.
The Average Lifespan of U.S. Currency: A Detailed Look
This variance in circulation patterns significantly influences the longevity of each denomination. The average lifespan of a $1 bill is about 6.6 years, which is less than that of a $20 bill, lasting approximately 7.8 years.
- Invest in integrated payment solutions to help meet merchants' digital-first needs. ...
- Expand to adjacent areas to provide more “money management” capabilities. ...
- Explore the viability of new payment flows.
In 2050, the payments ecosystem (acquirers, PSPs, facilitators, and aggregators) will revolve around creating integrated capabilities within an ecosystem of partners to truly optimise the customer experience and deliver a seamless, personalised payments journey from awareness to purchase and long-term retention.
Cashless payments can be made using a variety of payment methods, such as credit and debit cards, online payment systems, and smartphones.
