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Essay On Cashless Economy

759 Words4 Pages

Cashless economy is a positive development
Monetary system first appears as the barter, then people create currency to replace it for its inconvenient in trading. With the society developed, the currency also experienced several developmental stages. At first, currency are precious metals like gold and silver, later, paper currency appeared. Now with the advent of information technology, trading can use the bank card and electronic currency rather than using cash. Online payment via computer and mobile phone by binding bank card play an important role in nowadays trading system, cashless economy now advent. This essay will argue that the cashless economy is a positive development because comparing with traditional method, electronic …show more content…

Though cash has its denomination, it is not printed free, and also caused related management cost. For example, US dollar, According US’s federal reserve’s data(2016), federal reserve has to spend from 5.5 cents to 14.3 cents per note cost for printing each different denomination cash, meanwhile, in 2016, over 7.5 billion notes are planed to print (federal reserve board, 2015), which has caused millions lost. Moreover, cash management cost are also a burden of economy; for instance, cash management cost in Nigeria at 2012 are estimated N197 billion (CBN,2011). However, with the cashless economy’s advent, the cost from printing and cash management will be bonded at a low level. For Nigeria’s cash management burden, Nigeria’s central bank has approved cashless policy in 2012 (CBN, 2011) for it can reduce the cash in circulation, meanwhile, cash printing can be limited at a necessary level with the advent cashless economy. Nevertheless, some support the viewpoint that that though reducing the use of cash could save the cost appeared from printing and management, online trading is risky because the internet fraud, which could caused a large amount lost. It is necessary concern for electronic payment, however, most of internet trading can be traced which mean there exist a way to recover the lost. As de Jong has mentioned (2014), Visa card and Master card has nearly dominated the

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