The end of cash?

Contributed by Andre Bermon, Publisher of the bridge. When was the last time you paid with money? Was it before the pandemic? Then you are not alone. It’s no surprise that societal changes caused by Covid-19 will long outlast the coronavirus. Months of lockdown measures have accelerated trends that might have otherwise taken years to manifest.

 
One quickly evolving phenomenon is where and how consumers spend money.

 
According to statista.com, an online portal for statistics, between March 11 and May 3 Canadian online sales of household appliances, electronics, building materials and do-it-yourself items skyrocketed by 625 percent compared with the same period in 2019. Furniture sales went up 336 percent and clothing by 175 percent.

 
Businesses that have remained open are encouraging contactless payment, i.e., with debit and credit cards, while food courier apps and other delivery services have proliferated among grocery chains. Restaurants’ online food sales have increased by 203 percent; however, their overall business has drastically declined.

 
Why aren’t people using cash?

 
During the pandemic, many small businesses in Toronto have refused to accept hard currency over concerns that coins and plastic bills help spread the virus. Elsewhere, hard-hit countries like Spain have seen cash volumes plummet as much as 90 percent.

 
Since the start of the pCovid-19 has put considerable doubt on the long-term viability of carrying money in physical form – a practice going back 3,000 years to Mesopotamia.

 
What does a cashless society look like? And should we welcome it?

 
Gary Cohn, a former director of the U.S. National Economic Council, argues in a letter published in the Financial Times that the benefits of going cashless are “way beyond those of health and safety.” All-digital cashflows would not only diminish illicit enterprise, he writes, but would help common folk better organize their taxes. (Two reasons any government would love such a system.)

 
On the other hand, the drawbacks are immediate and far-reaching. Every digital and card purchase can be tracked and catalogued, letting consumer habits be measured and controlled by keystrokes. And those unfortunately lacking access would be excluded from commerce of any kind.

 
The pandemic has given digital currency a huge nudge – a disruptive shift and a leap towards a technocratic future. Society should be wary of such an outcome.

TwitterGoogle+FacebookLinkedInDiggStumbleUponBlogger PostDeliciousShare

Other News

broken-christmas-tree

Hello Holiday Readers

How many holiday editions is this now?? Twelve to be precise. The last two, amid pandemics, have been interesting. We did the giving guide last year, and this year did not get the content or … [Read More...]

cabbagetown-business-survival

Will Our Small Businesses Survive?

Contributed by Anita Bostok. As Cabbagetown residents, we know full well the advantages of downtown living. We walk down the street, and everything we need is at our fingertips. But we can’t take it … [Read More...]

don-valey-art-show

DVAC Holiday Show and Sale:

The show remains open at the Papermill Gallery until Sunday, November 20th at 4pm We are excited to be back in our favourite haunt, the Papermill Gallery at Todmorden Mills for this year’s Holiday … [Read More...]

caroline-murphy-web

Thanks a billion for your support

Thank you to my fellow candidates and you , as residents, for your commitment to the election process and being engaged. It is people like you who give me hope for all we can accomplish together and … [Read More...]

getting-to-know-you-

GETTING TO KNOW YOU

Cabbagetown is a neighbourhood of beauty, heritage, cultural diversity and inclusion. We are Anita Bostok and Norman Hathaway and we’re proud to contribute this regular feature where you get to know … [Read More...]

CarolineMurphy-Advert

CAROLINE MURPHY

“We can do better” - Candidate for City Councillor Ward 13 - Toronto - Center Caroline Murphy In September, I wrote about why I was running to be your City Councillor for Ward 13 and since then, I … [Read More...]

Photo credits Marion Voysey

My Betty White

My Betty White Photo credits Marion Voysey Betty White– is a visual artist, living and working in downtown Toronto. Born in the US, Betty studied painting and, for a period, paper making, in a … [Read More...]

lavenue-restaurant-cabbagetown

Elora L’Avenue

Contributed by Anita Bostok - After a soft opening last summer, L’Avenue restaurant at 583 Parliament Street is now creating quite a buzz. Taking inspiration from the chic cafes and brasseries she … [Read More...]