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The Cash Industry Takes the Fight to Digital Payment Advocates

by on November 12, 2017
 

There are many different opinions regarding the use of cash for payments. Some entities claim it needs to be abolished completely. Others think there will always be a need for this form of payment. With digital payments becoming the new normal, there is an uphill battle to be fought. Surprisingly, the cash industry is looking to fight back in spectacular fashion.

No one expects cash to be abolished completely before the next century. That doesn’t mean certain entities aren’t trying to make that happen, though. Credit card companies, governments, and startups are all trying to make digital solutions more prominent. It is evident this war on cash currency is problematic, to say the very least. Not because of its convenience, mind you, as digital solutions are vastly superior. However, they also require consumers to put their trust in centralized companies. Not a positive outlook for finance-aware consumers.

Cash Will not Disappear Anytime Soon

It was a matter of time until the cash industry decided to fight back. That is exactly what is happening right now. The International Currency Association isn’t too happy with these new initiatives. The association includes companies who supply banknotes and coins all over the world. Even the paper and hologram manufacturers are part of this group. All of them are at risk of losing money and cutting jobs when digital payments finally take over. Physical currency is cumbersome at times, but it also comes with a degree of financial freedom.

One thing to keep in mind is how cash production is still booming. The value of currency held in physical form has increased for many years now. The last decade shows how consumers all around the globe favor cash. With the 2007 crisis still fresh in people’s memory, reliance on banks is a last-ditch resort instead of a normal occurrence. Whether or not the International Currency Association will be able to change the future, remains to be seen. For now, it remains a profitable business to use cash. At the same time, the competition is heating up all over the world. It creates an interesting ecosystem that may not automatically benefit the consumer or merchant.

Going cashless is a fancy term thrown around very loosely these days. Most people don’t even grasp the consequence of going down this rabbit hole. The public demands and deserves the option the use cash if they prefer to do so. No government should try to tell them otherwise. It is not a tool for terrorist activity funding either They rather use prepaid cards, credit cards, and even wire transfers. Physical currency is not a threat in this regard, and any association with terrorist activity is merely speculative at best.

Header image courtesy of Shutterstock

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