Cashless economy a success or failure group discussion - Brainly.in (2024)

FAQs

Is cashless economy a success or failure? ›

This study found that forming a cashless society is a solution to efforts to grow the economy and speed of transactions in society. Another benefit is preventing corruption, levies, and fraud where electronic payments made on record have suppressed crime.

Discuss the questions.

Do you prefer cash or digital payments? Why? Would you miss cash once it's gone? Do you think a cashless society is safer?

In conclusion, the overall impact of a cashless economy can be positive if the necessary safeguards are in place to protect privacy and security, and if measures are taken to ensure that all individuals have access to digital payment methods.

Ultimately, a cashless society will help a developing economy grow because more transactions can be made within the country and financial services would be available to more people.

India has made strides in digital adoption but faces challenges like infrastructure and literacy. Various modes like mobile wallets and net banking facilitate cashless transactions. Advantages include transparency and reduced black money, while disadvantages entail security risks and a digital divide.

Identity theft and compromised personal information are potential dangers in a cashless economy, but privacy might be compromised in other ways too. When you pay digitally, you always leave a digital footprint, and this footprint is easily monitored by financial institutions.

The downsides of going cashless include less privacy, greater exposure to hacking, technological dependency, magnifying economic inequality, and more. Credit and debit cards, electronic payment apps, mobile payment services, and virtual currencies in use today could pave the way to a fully cashless society.

Crucially, this substitution has significant consequences for social inequality: while people with higher incomes typically benefit from cashless payments through easy and frictionless payments and access to short-term credit, people with lower incomes become increasingly dependent on financial services for which they ...

Making cash payments is time-consuming for customers as well as businesses. With cashless payments, customers can simply swipe their cards, enter a PIN, or use a mobile payment app to complete a transaction. Businesses can receive funds in their account much faster by eliminating the long payment processes.

Which is better cash or cashless economy? ›

Cashless payments can help reduce costs for individuals, businesses, and governments. For individuals, electronic payments can help avoid ATM fees and the need to carry cash. For businesses, electronic payments can help reduce the cost of handling cash, such as security, transport, and storage expenses.

Why Eliminate Cash? Cash can be used in criminal activities such as money laundering and tax evasion because it is difficult to trace. Digital transactions or electronic money create an audit trail for law enforcement and financial institutions and can aid governments in economic policymaking.

A cashless economy has the advantages of cashless transactions from preventing money laundering, deterring the shadow economy, increasing the tax base and compliance, and convenience for customers. People are aware of the benefits of a cashless economy. Electronic transactions are much easier and more transparent.

The US is moving toward cashless payments, with a substantial increase in the use of mobile wallet apps and contactless cards. A report from the Federal Reserve Bank of San Francisco found that payments made using cash accounted for just 18% of all US payments in 2022.

A cashless society leads to privacy concerns as every transaction leaves a digital footprint that entities can monitor and potentially exploit. Embracing cashless payments requires balancing convenience with privacy risks, including cyberattacks, identity theft, and reduced control over personal data.

Decreased Monetary Security

But when your money is in digital form, it's vulnerable to hackers and system malfunctions. Plus, any sort of power outage or network problem can make it impossible for you to retrieve your money. In many ways, cash offers a level of monetary security that a cashless system cannot.