Consequences of the abolition of cash. Arguments for and against cashless means of payment

Table of Contents

1 Introduction

2 Cash abolition at a glance

2.1 Conceptual basics

2.2 Functions of cash

2.3 Means of payment in transition

3 Arguments

3.1 Gaining central bank control

3.2 Curbing illegal transactions

3.3 Issuance of cash and its costs

3.4 Cash as protection against unwanted data collection

3.5 Further argumentation

4 Conclusion

Objectives & Topics

The primary objective of this work is to provide a comprehensive, scientific analysis of the current debate surrounding the potential abolition of cash. It examines the various arguments from both proponents and critics, explores the socioeconomic implications of a transition to purely electronic payment systems, and discusses the challenges that such a fundamental change would pose for modern societies and their legal frameworks.

• The impact of cash abolition on central bank monetary policy.
• Arguments regarding the reduction of illegal transactions and shadow economy activities.
• Economic analysis of cash versus electronic payment transaction costs.
• Privacy concerns and the threat of state and corporate data collection.
• Psychological aspects and the role of cash in financial autonomy.

Excerpt from the Book

Summary of Chapters

1 Introduction: Provides an overview of current trends toward limiting cash and outlines the research objective of analyzing the associated arguments.

2 Cash abolition at a glance: Defines key terms, examines the functions of cash in modern economies, and traces the historical development of payment methods.

3 Arguments: Presents a detailed juxtaposition of the arguments for and against cash abolition, including central bank control, illegal activity, costs, data protection, and psychological factors.

4 Conclusion: Synthesizes the discussed arguments and highlights that an objective consensus is currently unreachable, emphasizing the need for regulated frameworks for future payment systems.

Keywords

Abolition of cash, Central Bank, Monetary policy, Eurozone, Shadow economy, Tax evasion, Corruption, Terrorism, Cybercrime, Digital payments, Data protection, Privacy, Informational self-determination, Payment systems, Financial autonomy.

Frequently Asked Questions

What is the core focus of this publication?

The work focuses on the multifaceted debate regarding the potential abolition of cash in western industrial nations, examining both the motivations for and the consequences of moving toward a purely cashless society.

What are the primary thematic areas covered?

The text explores monetary policy challenges (such as the zero interest rate limit), the fight against criminal activities, the cost-efficiency of payment methods, and the critical issue of personal data protection.

What is the central research question?

The research aims to determine the consequences of abolishing cash and whether the purported benefits of increased control and efficiency justify the potential loss of civil liberties and individual financial autonomy.

Which scientific methodology is applied?

The author employs a systematic literature analysis, drawing on economic theories, empirical studies, and legal documents to discuss the arguments and provide a panoramic view of the debate.

What is the focus of the main body of the text?

The main part provides a structured analysis of five specific argument complexes, including central bank control, illegal transactions, costs, data collection, and broader sociological or medical implications of cash usage.

Which keywords characterize this work?

Key concepts include cash abolition, central bank control, informational self-determination, shadow economy, cybercrime, and the trade-off between privacy and state monitoring.

How does the zero interest rate limit relate to the abolition of cash?

The text argues that the existence of cash prevents central banks from implementing deeply negative interest rates, as savers can simply hoard physical cash to avoid negative charges.

What are the main concerns regarding the loss of anonymity?

The author highlights the fear that a cashless society would lead to a "transparent citizen," where movement and consumption profiles can be used by both commercial entities and dictatorial regimes to monitor and control individuals.