For some years now, cash has been on the retreat. Against the backdrop of globally changing payment behaviour, the debate about the abolition of paper money is gaining more and more importance. While large banknotes are to disappear, coins and small notes will be retained in the long term.
What functions does cash fulfil? How have means of payment changed over time? What arguments are there for and against the abolition of paper money and what exactly should the implementation look like?
Vera Dembski gives a comprehensive overview of the positions in the current discussion and discusses their plausibility. She also presents possible consequences of abolishing cash and argues for strict data protection and security requirements for electronic means of payment.
From the contents:
- ECB;
- Banknotes;
- Coinage;
- Undeclared work;
- Illegal transactions
Inhaltsverzeichnis (Table of Contents)
- Introduction
- Cash abolition at a glance
- Conceptual basics
- Functions of cash
- Means of payment in transition
- Arguments
- Gaining central bank control
- Curbing illegal transactions
- Issuance of cash and its costs
- Cash as protection against unwanted data collection
- Further argumentation
- Conclusion
Zielsetzung und Themenschwerpunkte (Objectives and Key Themes)
This paper aims to provide a detailed and comprehensive scientific presentation of the current debate surrounding the abolition of cash. While numerous publications already address this topic, this work aims to offer a nuanced and comprehensive perspective.
- The economic and social consequences of abolishing cash.
- The role of cash in modern economies, including its functions and limitations.
- The arguments for and against the abolition of cash, including concerns about privacy, security, and financial inclusion.
- The potential impact of a cashless society on financial markets, government control, and individual liberties.
- The evolving landscape of payment methods and the technological advancements driving the shift away from cash.
Zusammenfassung der Kapitel (Chapter Summaries)
- Introduction: The introductory chapter sets the stage for the discussion by presenting the current debate surrounding the abolition of cash, highlighting key events and developments that have intensified this conversation, such as the European Central Bank's decision to discontinue the issuance of the 500 euro banknote and the ongoing considerations for legal limitations on cash payments within the EU.
- Cash abolition at a glance: This chapter delves into the conceptual basics of cash abolition, exploring the functions of cash in modern economies and examining the historical and ongoing transitions in means of payment. It provides a foundational understanding of the subject matter, setting the context for the subsequent arguments.
- Arguments: This chapter presents the main arguments for and against the abolition of cash. It explores various perspectives, including the potential for central banks to gain greater control over the economy, the reduction of illegal transactions, the costs associated with cash issuance, and the implications of a cashless society for data privacy and surveillance.
Schlüsselwörter (Keywords)
This paper delves into the key themes of cash abolition, encompassing a range of relevant concepts such as: cash, cashless society, digital payments, financial inclusion, privacy, surveillance, central banking, economic control, illegal transactions, data collection, and technological advancements.
- Citar trabajo
- Vera Dembski (Autor), 2020, Consequences of the abolition of cash. Arguments for and against cashless means of payment, Múnich, GRIN Verlag, https://www.grin.com/document/1187329
