Cashless Societies and Security Concerns

You’ve probably been prepared for the coming of a cashless society since Y2K. For the young ones among us, that’s the year 2000.

Even if you’ve never heard of the Y2K phenomenon and all the supposed futuristic aftermath, you’ve probably experienced a cashless life in some way or another.

You might be one of those people who rarely even carry or use cash. You might spend your day ordering food, catching shared-ride services, and buying whatever you need — all without cash.

With the rise of cashless payment options like Apple Pay, Zelle, and similar contactless payment methods, you might think a cashless society is inevitable, if not already here.

Plus, the rise of cryptocurrency (i.e. bitcoin, litecoin, etc.) makes it seem like it’ll be just a matter of time until you can use your bank-connected subdermal microchip to check out at the grocery store.

Before you schedule your microchip implant, you should know that there are problems with a totally cashless society that you may not have considered.

Here’s why a totally cashless existence still might be further off than you think.

But first, what is a cashless society?

It’s exactly what it sounds like. It’s a monetary system that would get rid of any physical forms of money. This could include both paper money and metal coins.

A cashless society would depend on electronic and digital forms of payment that could include the use of debit cards, credit cards, and contactless payment methods.

Why a cashless society?

Advocates of a cashless society believe that it could be more convenient for both consumers and retailers to operate without physical currency. Consumers would be able to continue to pay for goods and services even if they are out of cash — whether they’re between paychecks or just without cash at any given moment. Retailers would benefit by giving these consumers cashless ways to purchase goods and services.

Other benefits for retailers using a cashless operation is eliminating the man-hours it takes to reconcile their registers and make deposits at the bank. For some operations, having and moving around a lot of cash could present security issues too.

Sizable security threats might require investing in precautions like a monitoring system or armed security guards which all add to a business’s operating costs.