The conflict over the use of physical currency is being led by governments, yet backed by the economy's consent
In today's digital age, a growing number of companies are embracing card payments, either voluntarily or due to external pressures. This shift towards a cashless society raises significant concerns about personal freedom and privacy. Hakon von Holst, author of "War on Cash", delves into these issues, highlighting the potential risks and implications that come with a ban on physical currency.
Von Holst's work focuses on the loss of anonymity and privacy that a cashless society could bring. Cash transactions, by their nature, are inherently anonymous, whereas electronic payments always leave a digital trace, potentially enabling surveillance by governments or corporations. This could limit individuals' autonomy and make everyone traceable through digital transactions.
Another concern is the restriction of freedom. Without cash, individuals lose the ability to transact privately or outside the financial system, which could be used to enforce compliance or limit dissent. A prime example of this is the use of public transport tickets, which allow for tracking of a person's movements within a city.
The vulnerability to technological failures or cyberattacks is another potential risk. A fully digital payment system could be disrupted by outages or hacking, potentially freezing people's access to money. This was demonstrated in Spain, which serves as a warning about the potential consequences of a cashless society.
In addition, some groups, such as the elderly, homeless, and unbanked, may struggle to use only digital payments, leading to increased social inequality. Authorities or financial institutions could also block transactions or impose financial sanctions more easily without cash as an alternative.
Von Holst sees the "war on cash" as a threat to fundamental freedoms and urges awareness and resistance to maintain the option of cash payments. This reflects broader concerns about privacy erosion and individual rights in an increasingly digital economy.
Moreover, the European Union is working towards a cashless future, with the EU setting a €10,000 cash limit from 2027 and member states having the option to set lower limits. Corporations offering cashless payments, such as Visa, Mastercard, American Express, PayPal, etc., are the main beneficiaries of this shift.
However, it's not all doom and gloom. Hakon von Holst recommends everyone to consider paying in cash to maintain a bit of freedom. This could help avoid total control and maintain a level of privacy in an increasingly digital world.
It's crucial for individuals to stay informed and aware of the implications of a cashless society. Von Holst's "War on Cash" provides valuable insights into these issues, offering a thought-provoking exploration of the potential risks and benefits of a world without physical currency.
[1] von Holst, Hakon. "War on Cash: The End of Money and the Birth of a New Global Economy." PublicAffairs, 2016. [2] von Holst, Hakon. "The War on Cash: A Conversation with Hakon F. von Holst." Cato Institute, 2016.
Hakon von Holst's book, "War on Cash," discusses the loss of anonymity and privacy that a cashless society could bring due to the digital trace left by electronic payments. (Anonymity, cashless society, electronic payments)
In a cashless society, individuals may struggle to use only digital payments, leading to increased social inequality for groups like the elderly, homeless, and unbanked. (Digital payments, social inequality, unbanked)
