As an entrepreneur forecasts the death of cash, one major bank is already seeing this at their local branches
On Dec. 1 Evan Sohn, an enterpreneur in the tech industry, spoke to the panel on CNBC about the declining use of cash in the economy, and how digital payments will one day soon make the holding of physical cash obsolete.
The world will soon be left without paper money, says tech entrepreneur Evan Sohn, as more and more people move to non-cash transactions.
“How far are we from a restaurant that says we only take online payment? If you eat here, you have to download this application, and we only take electronic payment, no cash here, no check. I don’t think we are that far away from it,”Â SohnÂ toldÂ CNBC on Friday.
According to the World Payments Report 2017, the volume of non-cash transactions surged 11.2 percent between 2014 and 2015, reaching $433.1 billion â€” the highest growth in the past decade. The driver is emerging Asia, where non-cash transactions surged 43.4 percent. Emerging markets contributed to 32.1 percent of the global growth.
Sohn said the killer of cash could be bitcoin, American Express, MasterCard or something else, butÂ “the next step is moving away from paper-based currencies.”Â â€“Â Russia Today
And interestingly enough on this same day, one major bank, that of RBS, announced they were planning on shutting down a quarter of their physical bank branches because more and more people are doing their banking online, and with less volume at the teller windows.
Faced with a current drop in branch use, as people increasingly bank on the go, the Royal Bank of Scotland is shuttering closing 259 offices and shedding almost 700 jobs, British media wrote.
Critics argue that the decision byÂ the RBS, which continues its rehabilitation fromÂ its state-backedÂ bailoutÂ inÂ 2008, could hurt older people and small businesses forÂ whom visiting a bank branch remains a way ofÂ life.
“This announcement will forever change the face ofÂ banking inÂ this country resulting inÂ over a thousand staff losing their jobs and hundreds ofÂ High Streets withoutÂ any banking facilities,â€ť Rob MacGregor fromÂ the Unite union, which represents bank workers, told the BBC.
Meanwhile, the RBS pointed toÂ a 40 percent drop inÂ the number ofÂ customers visiting branches acrossÂ the nation while online transactions have spiked byÂ a hefty 73 percent.
â€śOver 5 million customers now use our mobile banking app and one inÂ five only bank withÂ us digitally,â€ť an RBS spokesperson said. â€“Â Sputnik News
Moving away from cash and onto online transacting is not a bad thing, and simply accentuates the power of innovation for a world that is getting smaller every day.Â Yet even as this trend becomes the norm for most people in their daily lives, it is not the choice of abstaining from cash that is the intrinsic threat, but the elimination of it altogether which would remove an inherent freedom for individuals in their power of choice.
Central banks would love to completely get rid of physical cash because then they, along with sovereign governments, could impose their desired agendas of negative interest rates, and controlling what you are allowed to spend, save, and invest.Â Because the truth of the matter has always been, economic and financial control is one of the basic foundations of individual freedom.
Kenneth Schortgen JrÂ isÂ a writer forÂ The Daily Economist,Â Secretsofthefed.com,Â Roguemoney.net, andÂ Viral Liberty, and hostsÂ the popularÂ youtube podcastÂ on Mondays, Wednesdays and Fridays.Â Ken can alsoÂ be heard Wednesday afternoons giving an weekly economic report on theÂ Angel Clark radio show.