China’s Predatory Lending
February 12, 2025
The retail industry has been constantly innovating in order to become financially more viable. There are several innovations which have been introduced in the retail industry. However, very few innovations have been as effective as the Buy Now Pay Later (BNPL). The use of Buy Now Pay Later (BNPL) payments has been increasing over the […]
Proponents of the free market generally believe that competition is good for the economy. They argue in favor of the competition every time. Hence, it is natural for them to feel that competition in taxes is also good. The general argument is that competition forces the governments to rationalize and become more efficient. However, there […]
In the previous article, we have already established that there are many sporting franchises across the world that prefer to rent out stadiums instead of building them outright. We also know that a significant number of sports franchises are indeed using the leasing route. Hence, there are a lot of leasing transactions present in the […]
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Spain’s economy has been in an unprecedented decline since 2008. The average Spaniard found himself unemployed and had a huge mortgage bill to pay. An entire country has been bankrupted by the seemingly insatiable lust to acquire increasing quantities of real estate which drove the prices higher. This article will trace the beginning of this […]
Cashless society is the latest buzzword in global finance. At the present moment, only 15% to 20% of the world’s money exists in the form of currency notes. This itself is an absurdity. However, many central banks and governments all across the world have pledged to bring the cash percentage down to zero. This means that first currency notes were redeemable for gold. This was the gold standard. At a later stage, currency notes could be redeemed for other currency notes making it the paper standard. The next standard will be digital medium wherein digital money will be the only money. The money will cease to be something tangible. Instead, it will simply be notional i.e. money will only exist in the virtual world.
Like the taking down of the gold standard, this move will have extremely long-term implications. We cannot even fathom what this might lead to in the future. However, the act of banning cash would provide near total control to the government, which is a recipe for disaster.
In this article, we will criticize the concept of cashless society. We will make an attempt to understand what can go wrong if digital payments replace cash.
Governments claim that cash is a menace in the hands of the wrong people. Terrorist activities, counterfeiting, etc. are all funded by cash. This is indeed true. However, this is not the true motive behind the introduction of a cashless society. To understand the real motives, we need to be a bit cynical. We need to assume that the government only works for vested interests and not for the betterment of the common man. Hence, from the point of view of vested interests, cash in the hands of people is bad. This is because since cash is untraceable, it provides some degree of freedom to the people. If all money turns to a digital medium and can be taxed by the government, then this freedom would be eliminated.
Let’s understand how cashless societies will benefit the vested interests. Keep in mind these are not benefits to the common man. Instead, these are the problems that ordinary people will face. The problems of the common man are benefits for these vested interests.
The plan to convert the world into a cashless economy is not as foolproof as it sounds. There are some glaring loopholes in the program.
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