Inglés- B2.1 - The Pros and Cons of a cashless society

10 Questions

What is a cashless society?

A society where all financial transactions are conducted electronically.

What are some benefits of a cashless society?

Lower crime rates and easier international payments.

What are some downsides of going cashless?

Less privacy and greater exposure to hacking.

What are some examples of electronic payment methods?

Credit and debit cards.

Which country aims to become the first cashless nation in the world by 2023?

Sweden

What happened in India in 2016 related to cash transactions?

The country banned 500 and 1,000 rupee notes.

What is the main concern about a cashless society for marginalized individuals?

Magnifying economic inequality.

What is the role of businesses in a cashless society?

They benefit from processing fees when consumers use their apps and services to send and receive payments.

What is the current status of cryptocurrency in a cashless society?

It is not practical for most consumers due to risks and regulatory hurdles.

What is the main drawback of a cashless society?

Reduced privacy.

Study Notes

A cashless society is one where all financial transactions are electronic.
Many countries are moving towards a cashless society.
Going cashless may reduce certain types of crime and costs associated with handling physical money.
Downsides of going cashless include less privacy, greater exposure to hacking, technological dependency, magnifying economic inequality, and more.
Credit and debit cards, electronic payment apps, mobile payment services, and virtual currencies are in use today.
Benefits of a cashless society include lower crime rates, automatic paper trails, easier international payments, and reduced cash management costs.
Disadvantages of a cashless society include sacrificing privacy, exposure to hacking risks, technology problems, economic inequality, payment provider fees, and increased temptation to overspend.
Without cash, payments happen electronically through credit and debit cards, electronic payment apps, mobile payment services, and virtual currencies.
Many nations that use cash sparingly have already seen mobile devices become common tools for payments.
Cryptocurrency is already part of the discussion, but there are risks and regulatory hurdles that make it impractical for most consumers.
Sweden aims to become the first cashless nation in the world by 2023.
Cash transactions accounted for just 1% of Sweden's GDP in 2019.
India banned 500 and 1,000 rupee notes in 2016 to catch criminals and those working in the informal economy.
Electronic transactions in India increased temporarily after demonetization but cash returned to pre-demonetization levels by the end of 2017.
Both countries struggled to address how marginalized individuals would fare in a cashless society.
Cash currency is becoming less common with the rise of digital and virtual financial transactions.
The shift to a fully cashless society has potential drawbacks.
Most countries have a department within their governing body that regulates the printing and distribution of currency.
Businesses benefit from processing fees when consumers use their apps and services to send and receive payments.
Moving to cashless payments will save businesses money and make transactions easier to track.