cashless policy has lots of advantages and disadvantages, but let’s us start by giving an insight into what we are talking about . what the hell is cashless policy???
The introduction of electronic banking,
online transactions and mobile banking in
Nigeria has paved way for a new era of
development where the use and demand for
physical cash is gradually declining. These
recent evolution of technology in the
Nigerian financial institutions posses
interesting questions for economist,
financial institutions, business analyst and
the government regarding the current
economical status, logistics, and
availability of instruments to guarantee
economic growth and stability, efficiency
and effectiveness of the cashless policy.
Since the inception of humanity, various
payment methods have been used to
purchase goods and services starting with
the trade by barter. The trade by barter
method of transaction has been the
foundation for the introduction of money
and coins to solve the problem of double
coincidence of wants and divisibility faced
by trade by barter. The use of money/coins
was introduced after the use of trade by
barter method, and it has solved various
challenges associated with trade by barter,
but the use of money as an exchange
medium has its own challenges and dis-
advantages and can still be replaced with a
better payment system-the cashless policy/
Various advantages enjoyed by more
developed nations such as the US has
prompted the Central Bank of Nigeria (CBN)
to adopt the cashless policy.
1. Electronic payments will help businesspeople grow their customer base and resource pool, far beyond the limitations of their immediate geographic area.
- Using a payment card gives convenience and security than making cash withdrawal and moving to where to make purchase.
It will drive the development and modernisation of the payment system, promote transparency and accountability, reduce transaction costs and decrease the size of the gray or informal economy.
It will reduce pickpocketing and highway robbery which is very rampant in some countries.
It will help users control reckless spending and improve personal accountability.
[ also read see how you can manage your money to avoid
running into debt
Cut your coat according to your pocket ]
1. NO CASH/CURRENCY at hand
- If you lose it may take a long while to procure another.
Someone can steal your card buy stuff. (only if they know the PIN).
Cash is not under your control.
Impractical if you move to another country
Cards get expired and then you have to buy new one which takes long time.
You may FORGET PIN.
Without cash there would be no instant payments for goods and services
Disadvantages of a cashless society consist of privacy issues and computer hackers.
BANKS WILL BE VERY POWERFULL
12.it’s Very easy to lose the card
- There will be high interest rates