In A Cashless Society, People Use More Credit Cards
In a cashless society, people use more credit cards, do you think cashless society is realistic and why? What are the advantages and disadvantages?
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Academic Essay Sample
Credit cards play a crucial role in our economy by enabling cash less payments. Since they eliminate the need to carry cash in the wallet, they protect the users from the risk of getting robed. Even so, in my opinion, a cashless society is not a realistic idea. Of course, we can reduce the use of cash but some amount of paper currency will be in circulation at all times.
Credit cards are rarely used in the informal economy. When people buy a product or service from their local vendor they are more likely to make cash payments. Likewise, daily wage labourers are more likely to be paid in cash for the service they offer. Since it is not possible to install a card payment processing system in every home, office and shop, paper currency will continue to be in circulation and I don’t think that it is a bad thing.
Credit cards have both advantages and disadvantages. As for the advantages, they increase the purchasing power of people. If you have a credit card, you can make a purchase even if you do not have sufficient cash in your wallet. This ability, however, can be good or bad depending upon your spending habits. Some people buy products they cannot afford using their credit cards and land in serious debt trouble. A wise spender, however, can use the card to their advantage. Using credit cards, people can also make payments in emergency situations. For example, in a medical emergency like an accident, the patient or their family can use the card to pay for the medical treatment they need. Card payments also allow people to keep track of their spending. Also since card transactions are always recorded they make it easy for the government to claim the tax due to it. Overall, cash less transactions ensure transparency in the society.
To conclude, a cashless society is not exactly a realistic idea because of the technical difficulties involved in making it happen. However, we can reduce the amount of cash in circulation by promoting the use of credit cards. In my opinion, cards can be advantageous or disadvantageous depending upon the way we use them.
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