What are the national benefits of plastic money and cashless transactions compared to cash?
Payments
Asked by Question Bot06/Sep/20161 answer
1 Answer
F
Faisal Khan
Answered 06/Sep/2016
The basic premise is for the government and the regulatory institutions to have a better insight as to the transactions / commerce taking place inside a given economy.
It also makes money laundering that much harder when all the load points are monitored.
The penultimate goal is to have better tracking & records for purposes of taxation.
In developing markets and in some cases in emerging markets, there is a high price to pay for currency circulation. Cash management costs should also not be forgotten.
In certain geographies (India/Pakistan for example) there is a huge mistrust between the two countries and there are alleged incidents where counterfeit currency has been printed and flooded across the border. Electronic money mitigates this threat.
Corruption is another arena. Cash based transactions would be difficult to structure.
It also makes money laundering that much harder when all the load points are monitored.
The penultimate goal is to have better tracking & records for purposes of taxation.
In developing markets and in some cases in emerging markets, there is a high price to pay for currency circulation. Cash management costs should also not be forgotten.
In certain geographies (India/Pakistan for example) there is a huge mistrust between the two countries and there are alleged incidents where counterfeit currency has been printed and flooded across the border. Electronic money mitigates this threat.
Corruption is another arena. Cash based transactions would be difficult to structure.