Un mundo sin billetes ni monedas - El fin del dinero en efectivo | DW Documental

The Future of Cash: Who Benefits from a Cashless Society?

Key Concepts: Cashless society, digital payments, central bank digital currency (CBDC), data privacy, financial surveillance, digital divide, payment service providers, black money, financial inclusion, control, risks of digital payment systems.

The Decline of Cash and the Push for Digital Payments

The video highlights the increasing trend towards cashless transactions, with examples from Sweden where cash usage is already very limited. Financial institutions, politicians, and economists are actively promoting the elimination of cash. The video poses the question: who benefits and who loses in a cashless society?

• Sweden as a Case Study: Sweden is presented as a near-cashless society where card and mobile payments are prevalent, even for small transactions. The "Swish" mobile payment system, a collaboration between private banks, is highlighted as a cost-saving and convenient alternative to cash.
• Opposition to Cashless Systems: Some individuals in Sweden express concerns about being forced to use digital payments and the loss of control over their payment methods. They feel unsafe using cards with unfamiliar vendors.
• Costs Associated with Cash: Businesses, like a gas station owner in the Swedish archipelago, find handling cash cumbersome and expensive due to bank fees for deposits and withdrawals.

Beneficiaries of a Cashless Society

The video identifies several beneficiaries of the shift towards digital payments:

• Credit Card Companies and Payment Service Providers: Companies like Visa, Mastercard, Google, Apple, and Amazon profit from transaction fees and data collection.
• Amazon's Cashless Supermarket: Amazon's supermarket, which uses cameras and facial recognition to track purchases, exemplifies the seamlessness and data-driven nature of cashless transactions.
• Initiatives Promoting Cashless Payments: Disa's campaign offering restaurants $10,000 to go cashless demonstrates the active promotion of digital payments.

Arguments Against a Cashless Society

The video presents arguments against the complete elimination of cash:

• Brett Scott's Perspective: Brett Scott, a former investment banker, argues that cash is a public good that lacks a dedicated defender against powerful commercial interests pushing for digital payments. He uses the analogy of cars and bicycles, arguing that diverse payment methods are essential.
• Data Privacy Concerns: Scott highlights the data collection inherent in digital payments, where third parties track and monetize transaction data.
• Loss of Anonymity: Paying with cash provides anonymity, while digital payments create a trail of data that can be used for surveillance and profiling.

Data Security and Transparency

The video explores the security and transparency of digital payment systems:

• Student Concerns: Economics students at the University of Siegen express concerns about data security and the lack of transparency in how payment service providers use their data.
• PayPal's Terms and Conditions: Analysis of PayPal's terms and conditions reveals lengthy and complex agreements that grant the company broad rights to use customer data for various purposes, including advertising.
• Third-Party Data Sharing: PayPal's list of third parties with whom they share data includes major data collection companies like Google, Action, Facebook, and Oracle, raising concerns about personalized marketing and profiling.

The Risk of Total Control and Surveillance

The video warns about the potential for increased surveillance and control in a cashless society:

• China's Social Credit System: China's social credit system, which uses data from online purchases and other sources to evaluate citizens, is presented as a cautionary example of how a cashless society can enable state control.
• Impact on Behavior: The awareness of being constantly observed can alter people's behavior and limit their freedom of expression.

Central Bank Digital Currencies (CBDCs) as a Potential Solution

The video explores the possibility of central banks issuing digital currencies (CBDCs) as a way to address some of the risks associated with a cashless society:

• Riksbank's e-krona Project: The Swedish Riksbank is exploring the creation of an e-krona, a digital currency issued and guaranteed by the central bank.
• Benefits of CBDCs: CBDCs could provide a safe and secure alternative to private digital currencies, ensuring that individuals have access to a form of digital money that is backed by the state.

The Importance of Choice and Financial Inclusion

The video emphasizes the importance of maintaining choice in payment methods and ensuring financial inclusion:

• Minimum Cash Issuance: The students at the University of Siegen discuss the possibility of legally ensuring a minimum issuance of cash to protect the rights of those who prefer or need to use it.
• Mobile ATM Example: The mobile ATM service in the Swabian Jura highlights the importance of providing access to cash for individuals in rural areas and those who are not comfortable with digital payment methods.

Kenneth Rogoff's Perspective

Kenneth Rogoff, a Harvard professor and former chief economist of the International Monetary Fund, argues that large banknotes are often used for illegal activities and that reducing their circulation could help combat tax evasion and corruption. He advocates for a system where only small bills and coins are used for everyday transactions, with all other payments made electronically.

India's Demonetization Experiment

The video discusses India's demonetization experiment in 2016, where the government abruptly withdrew the largest banknotes from circulation in an effort to combat corruption and black money. While the move did increase the use of digital payments, it also caused chaos and hardship for many Indians, particularly those without bank accounts.

Better Than Cash Alliance

The Better Than Cash Alliance, an initiative backed by the United Nations, financial companies, and governments, promotes digital payments as a way to foster development and financial inclusion. However, the video raises concerns about the alliance's neutrality and its potential to push for a completely cashless society.

Conclusion

The video concludes that a cashless world carries enormous risks, including increased surveillance, limited access for some populations, data theft, and system failures. It emphasizes the importance of maintaining choice in payment methods, ensuring data privacy, and addressing the potential for financial exclusion. The future of cash remains uncertain, but the video suggests that a balanced approach is needed to harness the benefits of digital payments while mitigating the risks.