Cash is no longer king as fiscal and monetary interests converge

Chinese cashiers count one yuan banknotes at a public transportation office in the city of Yichang, central China (photo: dpa)
Chinese cashiers count one yuan banknotes at a public transportation office in the city of Yichang, central China (photo: dpa)

Will banknotes and coins soon disappear? Modern technology and private convenience support this trend, but monetary policy and political coercion play a less innocuous role. A ‘war on cash’ is underway that aims at enforcing negative interest rates on private savings, expropriating savers for the sake of a demand-driven stimulus. Governments favour cashless transactions because their transparency makes it harder to evade taxes.

The hoarding and use of cash has become a concern for economists and finance ministers. They present three arguments against the cash economy: (1) the inconvenience of using and holding cash; (2) the difficulty of tracing cash based illegal transactions, and (3...

Not a subscriber yet?

Subscribe now and get the latest in-depth geopolitical analysis and forecasts from GIS’s unrivaled cadre of experts.

Learn more about our subscription plans.

You can also buy this report for €8.99 Buy

Add your comment