Cashless Economy; heading towards Cashless Era

Editor: Vladimir Bajic | Tactical Investor

Cashless Economy

Before we get to the main article we think you might find this article to be of interest.

” The one year chart illustrates that all is well on the surface and that the process of flooding the markets with hot money, in general, is working rather well. The index could drop all the way down to 7200, and the short-term outlook would remain bullish. We are fully aware that this economic recovery is illusory, but complaining and whining about this does not provide one with any extra insights into the markets. We need to focus on what is really going on and how the masses interpret that data.

The truth is irrelevant if only you are aware of it; if the masses think otherwise, what appears as the truth to you could, in fact, be viewed as a lie by the crowd. The truth can set you free, but in most cases, it can be detrimental to your health and wealth; at least as far as the markets are concerned. The longer-term chart illustrates that this index is consolidating. As long as it does not close below 6600 on a monthly basis, the outlook will remain bullish. One could even argue that is its building a base from which it could easily springboard to and past 8400. ” BBC Global 30 Index Signals Dow Industrial Index will trend higher

Cashless Economy: Benefits

Most consumers already have several cashless payment methods: credit cards, debit cards and mobile wallets on their phone. You can even pay by the smartwatch.

Nevertheless, cash persists as people’s preferred payment method. According to 2018 research by the San Francisco Fed, cash remains the most frequently used way to pay in the U.S., representing 30% of all transactions and 55% of transactions under $10.

Debit and credit cards have been part of the financial landscape for decades. The credit card started with the Diners Club card in 1950, while the first debit card pilot program began in 1966. Today, both payment methods are accepted practically everywhere, with the underlying technology evolving to include encrypted EMV chips for faster and more secure transactions.

Then there’s the ongoing shift toward contactless and mobile payments. Many merchants let you pay on your smartphone through Google Pay and Apple Pay with a quick scan. Newer physical cards are also offering contactless payments, requiring you to simply wave the card over the point-of-sale card reader to complete your transaction.

But more and more, the decision to go cashless is made for us when retailers refuse to accept cash in the first place. Shake Shack restaurant mogul Danny Meyer made the switch at a handful of his restaurants in 2018 to improve the safety, efficiency and speed of transactions. Full Story

Dangers of a cashless economy

Nowhere is this more evident than in Asia, home to eight of the ten fastest-growing global markets in mobile payments. While China is leading the way in cashless payments, e-wallets are a global phenomenon that’s set to change the way we live and work. We’re trusting our phones with our money, using selfies to log into our bank accounts, and last year in Sweden, an estimated 4,000 people even went as far as to insert microchips under their skin to have a singular way of accessing their homes, offices, gyms, and even train ticket payment.

But the more we leave our wallets at home, it’s increasingly important to consider the cost of living in a cashless society.

The benefits are real. Consumers can make fast payments at any time from anywhere, governments and regulators can track and eradicate cash-driven criminal activity, and small businesses to compete against larger operators. And NFC—near field communication, the technology that allows for contactless payment—makes it more difficult for hackers to steal valuable information. And in Southeast Asia, where 73 per cent of the population does not hold a bank account, opportunities for financial inclusion are endless.

“We’re moving to a data-driven financial system,” says Tom Nicholls, a financial analyst who divides his time between London and Hong Kong. “Seventy percent of people don’t realise that free apps use their data to make money—and banks and other financial companies benefit from informational power over customers.”

“I’m wary of this new phenomenon,” says Stephanie Lee Sy, the CEO and founder of AI company Thinking Machines. “A totally cashless society is a society under total surveillance. It is also a society where your participation in the economy is limited by approval for a bank account or a cell phone plan. I’m in favour of the added convenience of digital payment channels but not to the point of a totally cashless society. Like many other pieces of tech, what’s healthy in small doses turns destructive without a check.” Full Story

Cashless Economy; heading towards Cashless Era