Cash Can’t Crash and It’s Here to Stay
Oct 9, 2024
Money talks, but cashless payments are decidedly more loose-lipped than cash, tracking transactions and monetising personal data that is routinely shared with third parties. Alongside the benefits of cash for personal privacy and security, it also won’t become unavailable when a network goes down or a phone battery runs dry.
Writing for the Australian Associated Press, Belad Al-karkhey explains ‘why physical money is here to stay’, with Aussies recognising the importance of retaining an offline payment option.
Cash can’t crash. When the telecoms break down or the UT systems of the banks break down, you’re left high and dry… I don’t see cash withering away within the next couple of decades.
There is also the matter of inclusivity, with cash being easy to use and understand for everyone from the very young to the very old. While Professor Angel Zhong, Senior Lecturer in Finance at the School of Economics, does foresee a less-cash future for Australia, she does not think cash will disappear, saying ‘physical currency remains crucial for older Australians, regional residents, refugees and those with disabilities.’
Cash also ‘remains an option that gives people freedom of choice in a digitalised world, should they not want more of their identity online,’ adds Professor Worthington.
One of the downsides of going totally cashless is that we just leave ourselves wide open to more and more scams and fraud.
The final point in favour of cash presented by Al-karkhey is its value for managing a budget during the present cost of living crisis. Research published in May 2024 ‘found people spend more of their hard-earned money when they opt for cashless payment.’ Co-author Lachlan Schomburgk explains that ‘physically counting through notes and coins before handing them over forces people to see what they’re losing.’