Paper Money is at Threat in China and Why Cashless Society Might not be Good

 

As the first country in the world to use paper money, China is expected to also become the first to stop using paper money due to the soaring popularity of mobile payment platforms, analysts forecasted on July 24.

Currently, more Chinese consumers are getting used to paying for daily expenses with their smartphones instead of cash. Rapid development of online shopping and e-commerce has created a good environment for digital payment consumption in China.

The mature online payment system makes it possible for Chinese consumers to become the first to stop using paper money in the world, according to analysts.

But not all revolutions are good revolutions.

The threat, of course, lies in the fact that now every single financial transaction will leave a record, and will be monitored. If something is being recorded, then by definition it is being monitored, despite attempts by the authorities to massage away this distinction. It is simply a matter of degree. And as always, such an “innovation” is being wrapped in peals of praise about how much it is going to “help” everyone.

By turning everything into a digital transaction, the banks are guaranteed the ability to make huge amounts of money on fees. They will be taking a cut on everything that moves in and out of their hands, which means every single thing. Leif Trogen, an official at the Swedish Bankers’ Association, has basically admitted as much.