Benefits & Challenges of Cashless policy

[Yakub02]

No doubt the cashless policy is characterized with ups and downs. It comes with series of benefits. Likewise it has the other side. Any reasonable government is expected to have examined the advantages and disadvantages before they can think of its implementation.

I could remember in the 1980s when there was a change of currency in my country, there was no problem and hullaballoo like we are having it now. Despite the fact that we are in the technology era where things are expected to be carried out in topnotch and of standard value.

Despite the fact that most of banking operations bottlenecks have been taken away from them. Nowadays we are having POS machines all around, People can make fund transfer through their smartphones, There are availability of ATM machines in all the banks.

With all these opportunities we are still failing in cashless and currency redesign implementation.

Here are some benefits and Challenges of cashless policy implementation.




-BENEFITS-
*Increased Financial Inclusion

*Reduced Corruption and Money Laundering

*Improved Transparency and Traceability of Transactions.

*Increased Efficiency and Speed of Transactions.

*Better Access to Financial Services and Products.

-CHALLENGES-
*Cybersecurity and Data Privacy concern

*Technical Challenges and Interoperability issues

* Accessibility and Infrastructure limitations

* High transaction costs for Small and Medium Enterprises

* Resistance to change and user adoption .

 

[Ithedicious]

Thank you so much for sharing. In as much as cashless policy will be able to provide all these benefits but I can tell you if we totally switch to a cashless policy , then the whole thing will not be easy as you might think.

Going to the local market here will involve you carrying your cash along and there is no how you will be able to perform cashless transaction in the local market except maybe you are interested to buy things at the supermarket that will involve that you have to pay with your MasterCard or any other mode of payment.

 

[Holicent]

A cashless policy can bring several benefits, such as increased efficiency, convenience, and security in financial transactions. By reducing the need for physical cash, cashless payments can be faster and more convenient for consumers and businesses. It also reduces the risk of theft, loss, or counterfeiting of cash. A cashless policy can also increase transparency, reduce the cost of managing physical cash, and boost financial inclusion.

However, the cashless policy can also bring several challenges, such as the need for reliable internet connectivity and electronic payment infrastructure. It can also pose a risk of cybersecurity threats and digital fraud. It may also exclude people who do not have access to or are not familiar with electronic payment systems, leading to financial exclusion. Therefore, a balance between the benefits and challenges must be maintained to ensure a successful cashless policy.