Why Britain should not go cashless
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With the introduction of the new 12 sided £1 coin - the UK is now behind only Sweden and Canada in being the closest nation to transitioning to a cashless society. Card payments are the most popular method of payment in the country, with contactless accounting for a third of all transactions. Studies have shown that consumers are psychologically more hesitant to part with cash than just tapping a card onto a chip and pin device. At the same time, the increased use of the cards have been linked to an increase in consumer debt according to a Bank of England report. And the thing about debt is you're basically owing money that doesn't actually exist. In a previous article, I explained how large sums of public debt are akin to a ticking time bomb, and consumer debt is much the same. Eventually, consumers would have to pay back debts and would have to file bankruptcy if they haven't got the money. If cashless payments have encouraged mounting levels of debt, then surely moving to a point where payments that are only cashless is a very bad idea. And then, let's look at the impact of an entirely cashless society. Every payment is digital. If your money is physical, then in order to steal someone's money, you have to be in the presence of it. You have to take it out of a wallet, a purse, a safe, a piggy bank etc But, if it's digital, then it can be taken from anywhere at any point in time. Contactless fraud has soared over the last year. Some businesses process payments offline, they store card details to withdraw money later, resulting in cards detail staying in the company's database for the payment to process later. The longer they are on the database, the longer they are prone to being hacked and defrauded. The loophole should be closed, but businesses warned they could time to close the changes.
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