Pros and Cons of a Cashless Economy
Discuss the advantages and disadvantages of a Cashless Economy
Read how you can present for the group discussion topic “Pros and Cons of a Cashless Economy”.
- Pros of a cashless economy
- Cons of a cashless economy
Extempore Topic: Pros and Cons of Cashless Economy
What is Cashless Economy?
Cashless Economy was one of the results of demonetization. In November 2016, the government of India announced the demonetization of five hundred and one thousand rupee notes. This move was done to eradicate black money from the country. With five and one thousand notes becoming invalid, the country faced a serious cash scarcity. To counter this many online payment portals like PhonePe and Paytm, moving the country towards a cashless economy. Today India leads the world in digital transactions.
Pros of Cashless Economy:-
- A cashless economy means lower forged currency.
- With platforms like PayPal, it has become very easy to transfer money internationally.
- The cost of printing and storing paper money is reduced with cashless transactions.
- Online transactions will lead to a decrease in illegal practices like money laundering.
- Cashless economy is required to eradicate black money from the system.
- There is transparency when doing online transactions, where both the sender and receiver have proofs and receipts of the transaction.
- Digital transactions are traceable.
With a cashless economy, money transactions have become easier and faster. Where previously we would have to wait in lines at banks to send or receive money. Now we can do money transfers from anywhere just by using our mobile phones.
Cons of Cashless Economy:-
- Not everyone is familiar with the concept of digital transactions, especially in rural areas.
- There are many security concerns with online wallets.
- A stable internet connection is required for digital transactions, which is not readily available.
- People are not comfortable with digital transactions.
- There is a chance of hackers stealing money from online payments.
- In India, most women do not have a bank account. Therefore for them, it is very difficult to adjust to digital transactions.
- In case of any technical issues, people will be left with no money.
In a country like India, where a huge number of people do not have access to the internet, implementing a cashless economy is almost impossible. People are still not comfortable using online platforms as there is an element of doubt and security concerns.
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