In In a previous post we talked about the digitization of banking and the measures that large banks have already begun to take. Today we come with a leading country in all areas, Denmark, which has proposed to eliminate physical money from its economy. The government of nordic country happier wants allow establishments such as restaurants, gas stations and clothing stores to stop accepting cash. A measure that aims to accelerate and promote the use of credit and debit cards and other forms of virtual payment.
The reasons given are various and seem generally convincing. It is obvious that physical money is a burden that slows down administrative and financial processes. According to experts like the consultancy McKinsey, this slows growth of the GDP and it is that in a recent study carried out by themselves, it was observed that if the US could get rid of all the unnecessary money, its GDP would increase by 0.47%.
Denmark’s central bank has stopped printing banknotes and producing coins. Two million people out of 5.6 million use the Danske Bank and today almost everyone has a debit card.
Another point in favor of digitization is that cash is the main cause of the underground economy. All or virtually all black market transactions take place in cash. Black markets that carry with them tax evasion or criminal issues such as drug or women trafficking. Through digitization it would be possible to avoid these two great problems of today’s society (It would be necessary to see in any case if new ways of doing it would not arise).
Everything sounds perfect if it weren’t for a couple of details. Some analysts, not without a certain paternalism, doubt about how certain groups such as the elderly who do not have knowledge of these instruments and do not have learning skills will adapt. Others question where the freedom to deposit the trust of our money where or whoever we want is. By means of this measure we (Danes for the moment) would be forced to trust banks no matter what, which in view of what has happened in recent years in some states such as Spain is still a certain risk (in addition of ideologically criticizable).