Posts tagged Cashless Society
Posts tagged Cashless Society
WHAT IF We got rid of cash? - CNBC
Spain Bans Cash Transactions Over 2,500 Euros … Spain has outlawed the use of cash in business transactions in excess 2,500 euros in order to crack down on the black market and tax evaders. The motivations behind the push for digital currencies is exposed as Spain heads down the road of the Greeks in combating their sovereign debtcrisis. As the government scrambles for every tax dollar it can get its hands on, even though they already gave every Spaniard $23,000 Euros in debt last year alone (approximately $32,500), they are now banning all large cash business transactions. Why? So they can track the transactions and make sure that people and business are paying taxes. Being able to track the transactions is also aimed to combat the growing black market in Spain. – Alexander Higgins’ blog
Dominant Social Theme: This cash has gotta go. It’s evil.
Free-Market Analysis: They are not even making a pretense anymore that the West is run via market economies. As we have long predicted, the phony “sovereign debt” crisis in Europe is being used to justify all sorts ofauthoritarian measures.
It is government pols that gladly borrowed what European banks threw at them. And somehow the upshot earlier this week is that Spanish citizens now lose the right to conduct many transactions in cash.
Spectactularly, the reports such as this one, excerpted above, don’t even both to hide the real point. The Spanish government wants to ensure that it can “track transactions and make sure that people and businesses are paying taxes.”
Of course, anyone who has visited Spain of late knows that the tax burden in Spain is onerous indeed, and is one reason that the truculent tribes that have co-existed uneasily with Madrid are again beginning to beat the drums of secession.
The taxes that the central government levies on small businesses especially are verging on punitive. But there are no apologies. The official position is one of unflinching demands.
It is surely part of a larger meme having to do with a “cashless” society. Just recently the UK Telegraph asked “Is mobile the way we’ll all be paying?” The answer, as can be expected, was a qualified yes, but issued in the predictable upbeat way.
The cashless society has been a much-mooted concept ever since consumer credit cards were widely introduced in the 1950s. Now it seems that “mobile money” is the new gold rush. The term – used to describe the way the mobile phone is used to pay for goods – yields no fewer than 126 million results on a Google search …
Market research firm Yankee Group believes that global mobile transactions will become a $1trillion market by 2015. While Berg Insight says there will be 894m worldwide users of mobile banking by the same year. Peter Ayliffe, chief executive of Visa Europe, who sits on the Monitise board, believes 50pc of all Visa transactions in Europe will be on a mobile device by 2020.
The top men are beginning to issue their predictions. The march to a cashless society has begun. Perhaps we owe Spain a debt of gratitude for revealing the REAL reason for a cashless society. It makes tax collecting so much easier.
But this is only part of the story. Taxes are certainly to be paid … but the RESULTS of tax payments and the government expenditures they give rise to are seemingly more questionable every day.
In Spain this is certainly evident. The REAL problem that Spain faces as its depression spirals out of control is the infrastructure that politicos built over the past decade. Every small town has bike paths, outdoor parks and other unnecessary public venues that will soon prove, well … unsupportable.
The Royal Canadian Mint wants to get rid of pocket change — and it’s enlisting hacker-types for help.
Less than a week after the government announced the penny’s impending death, the Mint quietly unveiled its digital currency called MintChip.
Still in the research and development phase, MintChip will ultimately let people pay each other directly using smartphones, USB sticks, computers, tablets and clouds. The digital currency will be anonymous and good for small transactions — just like cash, the Mint says.
To make sure its technology meets the gold standard in a world where digital transactions are gaining steam, the Mint is holding a contest for software developers to create applications using the MintChip.
The old-fashioned prize? Solid gold wafers and coins worth about $50,000.
It’s such an unusual move from the crown corporation, which has been in the coin-making business for more than 100 years, that Hacker News questioned whether it was an “elaborate hoax.”
It’s not, the Mint’s chief financial officer Marc Brûlé said Tuesday.
Commerce is changing and the Mint has always been innovative, Brûlé said. (For instance, it did an initial public offering of exchange traded receipts of its gold holdings last year.)
“There’s been a very huge growing digital economy that is really going to be fueled by smartphones and mobile being the next big thing,” he said.
A palm reading cash machine might not tell you your fortune, but it will, at least, dispense some of it. Ogaki Kyoritsu Bank in Japan has revealed that it will introduce the nation’s first ATM that lets you withdraw money just by scanning your palm. This isn’t the first ATM to use extra human verification, but it claims it’s the first that functions without the need for your cash card. Customers will need to pop in to a branch to provide some manual verification — and of course a palm scan — then you’re away. The bank hopes this will help people access their cash in the event of losing your card, or a natural disaster. Great until you upgrade to one of these.
Side Note: This is just some more small steps towards a cashless society…
Please note the reasons given for Canada’s abandonment of the penny:
- “It costs taxpayers a penny-and-a-half every time we make one,” Finance Minister Jim Flaherty told the Commons, adding the move will save taxpayers $11-million annually.
- Mr. Flaherty, whose department described the penny as a “nuisance” in budget documents, said the 2.35-gram coin is now more trouble than it’s worth.
Businesses are being told that they might have to round up to the nearest nickel… but the article also states “the five-cent coin’s days are now numbered too.”
I posted a story a few days ago from CBS called “Why Cash Is Losing It’s Currency” [http://cbsn.ws/HzTmE3] in which it states:
"Everyone thinks cash is so simple and so easy and so fast and so secure. It’s NONE of those things," said author David Wolman. In his new book, "The End of Money," he argues the biggest knock against cash is that it’s costly.
"It’s really expensive to move it, store it, secure it, inspect it, shred it, redesign it, re-supply it, and round and round we go!" Wolman said.
It already costs the U.S. government almost TWICE as much to make a penny and a nickel, than they’re actually WORTH.
Don’t be fooled - moving to a DIGITAL currency (i.e. a ‘cashless society’) has been planned for quite awhile. The primary difference between cash and digital currency (like BITCOINS) is that digital currency can be tracked. There is no ‘anonymity’ when your money is digitized - and that is the intent.
Along with this trend, we only have to look at Louisiana who in 2011 made it illegal to use cash in 2nd hand purchases. Why? Because cash, once again, is VERY difficult to track. When money is digitized, you can quickly discover who purchased what when in a matter of seconds. [http://bit.ly/HzUPKq] As Louisiana State Representative Rickey Hardy quite blatantly states: "It’s a mechanism to be used so the police department has something to go on and have a lead."
One more quick point - once money is digitized, it’ll be much easier to integrate into society a regional (similar to the Euro, but for North America in this case) or to a global currency.
Canada is scrapping the penny, ending production this year of a coin that weighs down consumers’ pockets while adding little to their purchasing power.
The government announced in Thursday’s federal budget that it will shortly jettison the one-cent coin – a casualty of Ottawa’s drive for efficiency and thrift.
“It costs taxpayers a penny-and-a-half every time we make one,” Finance Minister Jim Flaherty told the Commons, adding the move will save taxpayers $11-million annually.
Mr. Flaherty, whose department described the penny as a “nuisance” in budget documents, said the 2.35-gram coin is now more trouble than it’s worth.
“Pennies take up too much space on our dressers at home,” Mr. Flaherty added. “They take up far too much time for small businesses trying to grow and create jobs.”
For generations now, storekeepers have been making change by taking bills and coins out of the cash register drawer. Now many experts say changing technology is nickel-and-diming old-fashioned cash out of existence. So is cash a relic of a bygone era? Our Cover Story is reported by Lee Cowan:
It’s what the wallet was invented for, to carry cash. After all, there was a time when we needed cash everywhere we went, from filling stations to pay phones. Even the tooth fairy dealt only in cash.
But money isn’t just physical anymore. It’s not only the pennies in your piggy bank, or that raggedy dollar bill.
Money is also digital - it’s zeros and ones stored in a computer, prompting some economists to predict the old-fashioned greenback may soon be a goner.
"There will be a time - I don’t know when, I can’t give you a date - when physical money is just going to cease to exist," said economist Robert Reich.
Economists like Reich say the demise of cash has been happening ever since our financial fortunes could first be told by a piece of plastic with a magnetic strip.
That was half a century ago - and now? “95 percent of the transactions in America, or more, have nothing to do with physical pieces of paper or coins,” Reich said.
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