Futurists like to talk about how the future will be cashless and how FinTech is ushering in this new age of digital currencies, contactless payments, prepaid debit cards and mobile wallets. But instead of focusing on the positives of going cashless, we should also consider why staying with cash is bad. Here are 7 reasons why sticking with cash is not a good thing:
- Cash costs – a Tufts University study revealed that the cost of using cash amounts to around USD 200 billion per year (about USD 637 per person).
- Cash is dirty – researchers from Wright Patterson Medical Center found that approximately 87% of cash contains harmful bacteria that could cause an infection; only 6% were determined to be “relatively clean”.
- Cash is time-consuming – Americans spend 5.6 hours per year on average withdrawing cash from ATMs. That’s the equivalent to approximately USD 31 billion.
- Cash can be used for tax evasion.
- You can’t pay online with cash.
- Cash promotes crime and violence.
- Cash is difficult to recover if stolen.