The world is digitally evolving so fast, thanks to the internet and the electronic infrastructure that is being laid in almost all parts of the globe. The process has triggered a huge demand for a digital way of doing transactions that are efficient and convenient for users. A decade ago, the concept of digital money was unbelievable to many. However, many financial institutions have accepted it recently. Digital money is not physical in any way. It can only be electronically transferred and withdrawn in a money of any choice.In France, Canada and Belgium, a higher percentage of consumer payments are transacted via cashless methods. Netherlands, Sweden, UK, US, and Australia have also shown consumer payments that are of higher rates. South Korea and Germany use modes that are cashless for consumer payments. Many other countries are expected to adopt cashless transactions for a better worldwide economy.
Citibank decided to do away with all cash including no cash machines in all its branches in 2016. This was mainly triggered by a lack of consumer demand. A very small percentage of its customers did cash transactions in that year.
It’s already illegal to purchase real estate using cash in Belgium. It is also illegal to buy goods worth more than 3000 euros in cash, second-hand goods excepted.
India’s Prime Minister Narendra Mondi has plans to introduce a cashless form of payment in his country. In 2016, India’s central bank banned 500 and 1000-rupee notes in a step towards that direction.
This Sub-Saharan country has recorded the highest number of live mobile money transaction services. It has witnessed a huge success of m-Pesa, a mobile money transfer system designed and developed by Vodafone (British Telecom Giant) in 2007. 59% of Kenyans use mobile payments. Kenya has recorded one of the highest mobile money transfer rates across the world.
Most of the retailers in Singapore have adopted a “No cash” policy. In 2014, the country became one of the top nations to implement a fast 24/7 bank funds transfer system.
South Korea’s central bank has plans to go cashless as early as 2020 and also adopt a national digital currency. Cash will be gotten rid of in steps. In 2010, South Korean Supreme court gave a ruling which ensured that gaming currency would be acknowledged as convertible to cash.
At the moment you can’t buy subway tickets using cash in Sweden. A number of factors have made it possible for Sweden to enact a cashless system. A sparse population which hardens the distribution of physical money. There are also very few banks and a tech-friendly society.
The future of digital money allows one to have full control over their money. It is reportedly becoming the fastest mode of transaction online. The advantages of adopting digital money appear to be pivotal, saving the consumer lots of money, and also breaking down geographical barriers. It should also be noted that there are notable risks involved.
Today’s digital money is one more step towards the full digitalization of the financial world. Cryptocurrencies are an advancement of digital money and will play a major role in the future.