But crypto isn’t overseen by a government’s central bank, and it’s not legal tender. Cryptocurrency is a type of digital currency. If you’re thinking this sounds like cryptocurrency, you’re right. The difference between electronic currency and digital currency is that digital currency can’t be withdrawn for physical cash. You probably even get your paycheck through an electronic transfer that shows up in your bank account. If you look at your bank account balance, you’ll see a number that represents electronic currency that can be withdrawn at any time for actual dollar bills. And while no societies are 100% cashless at the moment, some countries, like Sweden and China, appear to be headed that way.ĭigital currency is created in a computer network, and it only exists electronically.īe careful not to confuse electronic currency with digital currency. A cashless society runs totally on a government-backed digital currency. It’s a world where cash doesn’t exist at all in physical form, no one is paid “under the table,” and every transaction you make is traceable (insert Twilight Zone theme song here). It makes sense, right? A lot of us swipe our debit cards to pay for everything and have wallets stuffed to the brim with receipts, gift cards and gum wrappers-anything but cash.īut a true cashless society is way different than that. Pew Research shows that in a typical week, 41% of Americans make absolutely zero purchases using cash. Think about it: Unless you’re a hardcore stickler for using the tried and true envelope system, when was the last time you actually pulled out a wad of cash to pay for anything? Cash is still king, but because of the convenience factor, a lot of people choose to make their everyday purchases with cards or apps. don’t we already have a cashless society now? Well, you’re not completely wrong. These transfers can be done with debit or credit cards or through digital wallets (think Cash App, Zelle, PayPal, Google Pay, Venmo and Apple Pay). The only way to pay for stuff in a cashless society is through digital transfers. And the money in your bank account only exists in digital form-no driving through an ATM to withdraw a fresh stack of Andrew Jacksons. In a cashless society, you can’t spend or save paper dollars, because they aren’t accepted as payment. Let’s break down everything you need to know (and debunk some serious junk too).Ī cashless society is one where all physical money (cash and coins) is totally replaced by a digital currency. ![]() So, what’s the deal with all this cashless society hype? Are cash and coins going away for good? And does a cashless society really look all that different than the world we live in right now? Ever wonder if our society is going completely cashless? Maybe you’ve noticed more and more businesses are only accepting digital payments.
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