Wednesday, May 05, 2010

Death to cash at origin

Paper money cash is such a problem in many ways. It is a very expensive payment tool, with lots of management overhead and distribution cost. It is not at all secure (probably the least secure than any alternative payment tool), it can form the basis for money creation and sits at the heart of many detrimental aspects of any monetary system. It would be best for all if we could eliminate paper money.

In reading a recent article published by Juniper (Read here), I realised that many people (and this differs from country to country) are still being paid in cash. (whether a salary or some kind of grant). The payment process of individuals is the source of a large percentage of cash in circulation. It struck me that this is where the fight against cash should start. All salary and grant pay-outs should be made electronically (and I believe that this should be legislated).

It is relatively easy (and it will become easier) for any individual to open a bank account or get access to an electronic wallet (even in poor countries). Only if cash was electronic in the first place, do we stand a chance of defeating paper money in the interest of all of us. I say: "Kill money before it gets born."

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