The Future of Cash

While cash continues to circulate widely in the United States, many consumers, as well as many business experts, believe paper money will soon become antiquated. Advocates of a cashless society point to countries such as Sweden and to some Chinese cities where mobile payment applications are supplanting paper currency. In the United States, digital payment systems are helping to change consumer habits, and some businesses have stopped accepting cash. Advocates of a cashless society argue that credit and debit cards and digital payment methods are efficient and transparent and inhibit financial crimes. Because cash is anonymous and largely untraceable, it can facilitate illicit activities such as tax evasion and money laundering. Critics of the cashless trend raise concerns regarding privacy, security and equality. They argue that cash lacks the fees associated with cards or electronic money transfers and that cashless businesses discriminate against people who must, or choose to, rely on cash. In the face of this criticism, some businesses that went cashless are reversing course.