A cashless economy is where the cashless payment system is employed. It means that banks do not use cash anymore. Every transaction is done electronically, using debit /credit cards (plastic money is also a dominant player of the cashless economy), smartphones, or digital wallets.
The cashless payment came to light in the year 2007. It quickly gained people’s attention and achieved popularity because it introduced a convenient and faster payment method. But today, facial recognition AI (Artificial Intelligence) based payment technology is introduced. It means that nowadays, people can pay just by scanning their faces. And all this data will be stored with the government with high-risk data leaks and privacy issues.
How will cashless systems affect us?
It was not more than two days that I visited the supermarket, buying a few essentials. The exciting offer on my credit/debit card enslaved me to pay through it, benefiting me with a good 20% off on the total bill. And with this, I was a part of the cashless economy. In the cashless system, the government has many favorable points, starting from checking the flow of black money to saving the cost of printing currency and the convenience of cash-free transactions. Enslaving humans will be the new way of control by the government through the cashless system.
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So will it affect us adversely?
The government will manage tastes and preferences, the flow of goods and services, constitutional freedom of choice, and demand decisions. As the economic control board, the Central Bankers, have generated significant Quantitative Easing (QE) to reverse deflation, this has resulted in severe inflation, possibly hyperinflation. With no other alternative, the individual shifts his preference and choice accordingly. Blocking a transaction ID or barring a payment getaway, the government can increase favoritism towards some business houses, people of some community, or some particular classes. Hence, there is a tinge of monopoly power present. Facts will state that even having money doesn’t give freedom of choice to a person in the market. With this, the government will compel the masses to shop for what they do not need.
This plan of the government cannot work alone. It will need the help of central banks, federal banks, and other government originators. And these policies will slowly roll out by central banks with the aid of the government.
How will the Government implement the paln?
As mentioned above, the Central Bankers, the economic control board, have created massive Quantitative Easing (QE) to reverse deflation. That eventually ends in dramatic inflation and possibly could be hyperinflation. Before that happens, the government will declare a state of economic emergency; it acknowledges that cash is the problem and abolishment is a must for recovery to occur.
This means that all economic transactions once done with cash are now to be done with cashless kind such as debit or credit, UPI payments, net payments, etc. These are forms of digital currency –an electronic currency card or electronic payment modes. For example for pint-sized purchases as a drink to a hefty transaction as buying a car or a home or property; all credits, including wages, dividends, sales of goods, business transactions, etc. The entire economic system becomes simplified, as the only currency available in the economy is the cashless digital one.
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At this point, every transaction is on record with the government’s free hand to assess the cardholder’s income to the penny, without the need to file for an income tax declaration each year. The government can announce that the tax system is a mess, which must be simplified to relieve the people from the burden. In the future, the government will conduct a direct tax debit from the currency card account rather than the bank accounts. Further, the Government can announce that the annual filing is such a complicated procedure for the average individual, hence, monthly or daily tax deductions will be an easier procedure. Hence, forcing the common man in a repercussion of daily tax deductions.
It is easy to present this as a bonanza and a favorable structural change by the government to benefit all citizens, quoted as, “the only possibility for a return to prosperity in the digital age”. But in reality, the population has entered into a state of complete economic slavery to their bank, government, and government-owned financial system. Operating outside these systems will be difficult. Bartering will become the alternative way of trading, whether legal or not. Meanwhile, the government will centrally control all virtual transactions. Consider the war on hard cash as the interim step into default. This act only makes things worse. A society without money will not be able to function, and this leads to totalitarian states.
What do economists think about these policies?
The Austrian School economist, Dr. Joseph T. Salerno says, “Government should encourage people to withdraw money from banks they don’t trust. That would give banks incentive to act responsibly.” – But as usual, the government isn’t just doing the wrong thing, it’s doing the exact opposite of what is the right thing. – FDIC (Federal Deposit Insurance Corporation) insurance gives depositors good comfort that their money is safe, so depositors have zero reasons to worry about, but what the banks are doing with the depositor’s money? The answer is that the population is clueless about how banking works! – Salerno expresses that government is bankrupt, both literally and intellectually, within the sense that they can’t repay what the government had promised.
Who will be the loser and winner?
The consumer’s taste and preferences are going to be at stake. It will bring a psychological change in human nature and humanity, and human beings will be a new automaton for the government. The unfavorable goods, services, communities, societies, and classes will perish slowly. We will be a part of the democratic government without any democracy with a form of the government ruling us will be Totalitarian. All questions related to economic management psychology will be questioned and answered by the government. In the era of robotics, human slavery will continue to an infinite number of ages. Slowly, the concepts of education and society will fade away. We will enter the early ages of human development in the cycle of earth and the universe.