What if your bank account was ok but not consisting of physical banknotes. Give it some thought because this is the way we are heading. The cashless society. Basically its for the protection of the bankers, not for your benefit.
Under the pretext of funding terrorist groups, or other criminal activity, there is a move to ban cash completely. More and more nations appear to be restricting how physical currency can be used but is the real, underlying reason, that of control. In other words if governments control how cash is used, then they control you! I happen to be a smoker, is it possible then that I may not be able to make a transaction to buy a pack of cigarettes?
According to the US federal reserve there was approximately $1.38 trillion in circulation as of August 13, 2015, of which $1.33 trillion was in Federal Reserve notes.
The move toward a cashless society won’t occur in one fell swoop. And there won’t be one single factor that brings it about.
There are, however, plenty of alternate payment methods that are nipping at its heels. Some have been around for more than half a century. Others have begun to pop up in the past few years. And a few are just getting their start now. But all of them shift the paradigm a bit.
No surprise here. Since the introduction of the Diners Club card in 1950, the credit card has allowed people to quit worrying whether they had enough cash on hand to buy something when the mood struck them. While early charge cards had to be paid off in full, the introduction of the BankAmericard in 1958 ushered in the cards we know today.
With its massive fluctuations in value and cyberpunk origins, Bitcoin has spurred more debate than most cash alternatives.There have also been financial scandals, such as the sudden collapse in April of Mt.Gox, which claimed to handle around 80 percent of all global dollar trades for bitcoin. There’s still plenty of interest, though. Late last year the daily value of bitcoin transactions hit $257 million, surpassing Western Union. Overstock.com, meanwhile, says bitcoin transactions will add 4 cents per share to its earnings this year.
Payments through Near Field Communication(NFC) devices have been forecast for quite some time, but given the wide footprint of the iPhone, Apple‘s entry into the market could be a significant step in broadening the cash alternative. Simply by tapping your phone (and starting in 2015, your Apple Watch) to a pad at the checkout lane and confirming the purchase with your fingerprint, it makes buying easier than ever at retailers like Macy’s, Walgreens, McDonald’s and the Apple Store.
While analysts haven’t put forth any hard estimates about its impact, Piper Jaffray’s Gene Munster says, “The reality is, this is the biggest news Apple’s had in terms of consumer services since they launched iTunes. So I really think that the significance of this is going to sink in over the next six months.”
While they’re often (and easily) confused with credit cards, debit cards didn’t make their debut until 1966—and didn’t really become widely used until the 1990s. (In 1990, debit cards were used in just shy of 300 million transactions. Twenty years later that number was closing in on 37.6 billion transactions.) Meanwhile, according to a 2013 Federal Reserve Payments Study, the number of debit card payments increased more than any other payment type from 2009 through 2012.
Apple Pay might be getting the most attention, but Visa and MasterCard both have their own contactless payment programs. PayWave (Visa) and PayPass (Mastercard) let cardholders simply tap their card, a specialized fob or (in some cases) a smartphone on a payment pad to instantly pay the amount owed—and guard against fraud, as the cashier never handles your card or sees the number.
Soon to be spun off from its parent company eBay, PayPal has long been a go-to method for people to pay online, especially in person-to-person transactions. The service has 152 million active registered accounts, and last year it processed $27 billion in mobile payments, essentially doubling the 2012 totals. Those are impressive numbers, but they pale compared to competitor Alipay, a division of Alibaba that says it processed $150 million in mobile payments last year.
When you think about the alternate payment field, Coke probably isn’t the first thing that comes to mind. Coca-Cola Amatil, a bottling operation in the Asia-Pacific region, has branched out, though. QuickTap is a cashless prepaid system focused on vending machines, letting people grab a drink even when they don’t have a couple of singles on them. Just tap the card or your phone to the machine’s touchpad and you can quickly quench your thirst. In North America, Coke launched a pilot program with Isis Payment (which has since been renamed Softcard), outfitting 200 vending machines in Austin, Texas, with small screens and contactless readers.
Facebook already plays a big part in many people’s day-to-day lives—but now it’s looking to get into their wallet. The social media site is reportedly working on a peer-to-peer payment service along the lines of PayPal. That would make it as easy to send money to a friend or family member as it is to share a picture with them.
Internet of Things
As devices get smarter, they could begin to make payments for you. LG already has a “smart refrigerator” on the market that tracks the food you’ve got and puts together a suggested shopping list for you. As the IOT progresses, experts say auto-reordering of food—whether from the local grocer or online services like Amazon—could become a fairly common practice in the future.
Everything old is new again, even when it comes to purchasing. With people refreshing so many electronics and goods these days, many retailers have launched trade-in programs, letting people exchange their old phones or used video games for store credis. Amazon, for instance, lets users trade in everything from electronics to books to DVDs. Best Buy takes cell phones, computers and wearable technology. And GameStop has built a business on trade-ins of video games—and recently has started accepting smartphones and tablets as those have become go-to gaming devices.
The central banks are planning drastic restrictions on cash itself. They see moving to electronic money will first eliminate the underground economy, but secondly, they believe it will even prevent a banking crisis.This idea of eliminating cash was first floated as the normal trial balloon to see how the people take it. It was first launched by Kenneth Rogoff of Harvard University and Willem Buiter, the chief economist at Citigroup. Their claims have been widely hailed and their papers are now the foundation for the new age of Economic Totalitarianism that confronts us. Rogoff and Buiter have laid the ground work for the end of much of our freedom and will one day will be considered the new Marx with hindsight. They sit in their lofty offices but do not have real world practical experience beyond theory. Considerations of their arguments have shown how governments can seize all economic power are destroy cash in the process eliminating all rights. Physical paper money provides the check against negative interest rates for if they become too great, people will simply withdraw their funds and hoard cash. Furthermore, paper currency allows for bank runs. Eliminate paper currency and what you end up with is the elimination of the ability to demand to withdraw funds from a bank.
In many nations, specific measures have already been taken demonstrating that the Rogoff-Buiter world of Economic Totalitarianism is indeed upon us. This is the death of Capitalism. Of course the socialists hate Capitalism and see other people’s money should be theirs. What they cannot see is that Capitalism is freedom from government totalitarianism. The freedom to pursue the field you desire without filling the state needs that supersede your own.
There have been test runs of this Rogoff-Buiter Economic Totalitarianism to see if the idea works. It was reported on June 21, 2014 that Britain was doing a test run. A shopping street in Manchester banned cash as part of an experiment to see if Brits would accept a cashless society. London buses ended accepting cash payments from July 2014. Meanwhile, Currency Exchange dealers began offering debt cards instead of cash that they market as being safer to travel with. The Chorlton, South Manchester experiment was touted to test customers and business reaction to the idea for physical currency will disappear inside 20 years.
Complete abolition of cash threatens our very freedom and rights of citizens in so many areas.