Is a cashless world OK?

There has been a movement over the past years to create a cashless world. Is that OK? It’s debatable. One of the big things about cash is that it represents society. In Europe, the euro notes mark major landmarks; in the UK, the bank notes recognise major figures from Britain’s history; in the USA, legends of leadership are immortalised; and the list goes on. Every country uses cash to recognise their society and history …

The importance of what’s on the banknotes

… and now cash is disappearing.

On the one hand, it feels like the end of a major moment; on the other hand, it was predicted and obvious. However, it does create issues. Over a billion people don't have bank accounts, for example. Stores and companies that will no longer accept cash are excluding a swathe of society called those who are not banked.  A few examples:

• Major retailer Asda has gone cashless “as more than nine in 10 payments made at superstore forecourts were made via card or contactless device”. BBC News
• “What was once a given at bank branches - cash supplied by tellers over the counter - is no longer available.” Daily Mail
• “A cafe's decision to go cashless has sparked a heated debate with its customers, with many threatening to boycott the coffee shop.” Lancashire Post
• ‘No cash accepted’ signs are bad news for millions of unbanked Americans, The Conversation

It interests me in that not all of society have bank accounts and cards. There are some people who rely on cash, particularly in certain demographics. Therefore it is interesting today that many retailers will no longer accept cash payments. But can they legally refuse a cash payment is my question?

Yes. Any company can refuse cash payment as long as it's not discriminatory for race or disability. This led to a recent UK petition to ask the UK government to make it illegal to refuse a cash payment failed. Although the petition garnered over 30,000 supporters, it needed three times that number to get a debate in Parliament about cash acceptance. The government did at least respond to the survey:

The government does not plan to mandate cash acceptance. Businesses are able to choose the forms of payment they accept.

Some think the UK is unique in this position, but they’re not. Finland, Sweden and the Netherlands allow retailers to refuse cash, as do some US states . Interestingly China, a country where mobile wallet payments exploded in the last decade, has told retailers that it is illegal to refuse a cash payment.

We live in a rapidly changing world of digitalisation, and paper is now part of the antiques roadshow. It’s a shame, as I quite like the feel of a dollar.

Meanwhile, don't even get me onto the subject of checks / cheques.

 

Postnote:

The Bank of England explained this week that cash is still very important, and that the value and number of banknotes in circulation has increased sharply since 2020. Counter to the view that cash is in terminal decline, the total value of notes in circulation has risen by nearly 16 per cent, while the total volume is up by nearly 17 per cent, according to the bank’s data.