Merits and Demerits of Cashless Economy

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429 comments Page 1 of 43.

AJFER INTEKHAB said:   4 weeks ago
Hello, friends good morning /evening.

I am Ajfer Intekhab. Thanks for providing this opportunity to speak on the topic cashless economy. First of all, understand the meaning of a cashless economy. It is an economy which doesn't use any physical cash for transactions but rather it would be directly paid to the receiver account.

In my point of view, every coin has two sides so a cashless economy has both merits as well as demerits.

MERITS:
1. It saves a lot of time in sending money to someone's bank account.
2. Corruption, Robbery and loss due to damaged of cash will be eliminated.
3. Cashless economy helps us in using online services like recharges, booking tickets, and online shopping in a much easier and safer way.

DEMERITS:

1. We may have to face server issues sometimes.
2. Cyber crimes also increase due to a cashless economy as getting money from someone's account is much easier and faster now.
3. Illiterate and unaware sectors of society may not get benefitted from a cashless economy due to a lack of technical knowledge.
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Abhijit Majee said:   1 month ago
Every innovation will have some merits and demerits but since we as humans can live together in a trust-based society, the merits of most innovations outweigh the demerits.

The merits are:.

A) Independence from physical currency:- It gives us the freedom to transact any required amount without the risk and hastle of carrying physical currency.

B) Ease of access:- With rapid rise in technology penetration, cashless transactions are being used by the smallest of vendors to seamlessly transact without any barriers. This technology has proven so easy that even remotest villages have people transacting cashless-ly.

C) Lesser corruption:- With each transaction being digitally recorded and stored, the scope for corruption using cash is reduced hugely. Each transaction is accounted for. Making huge transactions in govt businesses cashless mandatory will remove the scope of corruption.

D) Advanced concepts of crypto-currencies, digital currency and decentralized currencies are the future of our society which allow free markets to exist without govt intervention and single-party manipulation.

Conversely, the following demerits emerge :-.

A) Dependence on technology:- Completely shifting to cashless will make all of us more and more dependent on technology and this at the mercy of the people who control this technology.

B) Lesser privacy:- Since every transaction is being recorded, we also give away our private information such as location, devices used, our choices, etc which takes away our privacy and makes it easier to track our activities. This can be used in malicious ways if someone wants to.

C) Technological illiteracy:- Given the vast population of India, there are a huge number of people who simply do not have access to any technology and are illiterate in that aspect. Making everything cashless will cut off the services to millions of people. Older people become more and more dependent on the younger generation to learn and use this technology.

D) Cyber threats:- Rise in technology also has brought about a rise in cyber threats. Naive people, especially old people, often fall into traps of phishing, scams and extortion because of their limited knowledge of technology. Even major banks face cyber threats from hostile parties trying to damage the country. So cyber threats are a serious demerit of a cashless economy.

Given the above merits and demerits, I believe many of the demerits can be solved by working together to build a trust-based society and technology. If we can create trust between the entities providing the technology and the end users to not misuse each other's situation, then we can steadily build a reliable system of a cashless economy. In general, with a little increased awareness of technology and related threats, most cyber threats can be tackled. Thus, I believe that the merits of a cashless economy is more than the demerits.
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Anchal Gupta said:   1 month ago
Hello everyone, Today I will be sharing the merit and demerit of a cashless economy.

Let us first understand the meaning of the Cashless economy, It is an economy where based on the idea of eliminating of physical cash and replacing it with other alternatives like- the digital rupee, UPI or any other electronic facility.

Let us first discuss the Merits of a cashless economy;

1. The first merit of the cashless economy will be it will eliminate unaccounted money from the economy since every transaction happening in the economy will pass through any banking medium.

2. It will help in countering black money, corruption and anonymous transactions.

3. It will save crores of rupees every year government has to spend on printing cash. The money saved can be used for other alternative welfare measures.

4. Since there is no need to carry physical cash, there are fewer chances of losing cash or any theft.

Demerits.

1. A majority of our elderly population will be deprived of the benefit of a cashless economy due to a lack of technical unawareness.

2. There will be a huge cost in streamlining functioning of the cashless economy that may outweigh its advantage,

3. There will always be a risk of hacking or any other malpractices that make common people prone to any unethical practices.
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Geetam Sharma said:   1 month ago
Hi everyone.

Today we are discuss about cashless economy.

Every coin have two faces first is good and second one is bad.

First we discuss about merits.

- cashless economy is reduced our time to make a payment compare to offline cash.

- To reduce the chances of thife and robbery.

-If we forgot our wallet at home we make a payment through online UPI.

Demerits.

The disadvantage of cashless economy is the old people don't know how to use online payment.

Nowadays online hacking is increase Day by day.

In rural areas, the cashless economy is not successful because there is a network issue.
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Pranjal nougrai said:   2 months ago
Good evening everyone.

Today I am going to present my views regarding the topic. Cashless economy.

So first of all, we will see that what is cashless economy.

So it is a mode of payment with using the paper cash or physical currency or it is a digital transaction of money.

I think cashless economy is our step towards the progress as we know that world is progressing day by day and our world has already developed so much. So in this era of progress cashless economy is a good initiative. As we are seeing that.

All the developed countries using cashless economy. As everything has pros and cons. So it too have cons as well as pros.

Advantage.

1. This mode of payment is less time consuming.

2. It will reduce theft.

3. It will reduce corruption and black money.

4. It will also stop counterfeit money.

5. It will reduce the expenses on printing and carrying of physical currency as every year 500crore something ruppes expend on transport and security to carry the physical money from RBI to various banks. It will also reduce the deforestation.

6. People have not to carry huge amount of cash with them. So is reduce robbery as well.

Disadvantages.

1. This mode of payment is useless for illiterate population.

2 old age people have to depend on young people for payment.

3. For country like India where large no of people are still not educated it become difficult to use it.

4. Cyber crime.
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Srikar said:   2 months ago
Nowadays we all are familiar with digital transactions with the internet, and it's a way throughout the generation we can also say that it is one-way development of the country, now each and every item is made online lives like groceries, shopping, medical etc. All people are familiar with digitalization.

By day by day technology also increases and also provides a lot of job opportunities for all people online transactions are more risk than offline transactions but securing a record is safer than a piece of paper.

The Merits are and it easy to carry and need only the internet and easily transferable it is safer for people who don't carry a lot of cash and reduces the paper.

The Demerits are Cyber crimes are high and people are also easily trapped by hackers and old-generation people totally depend upon the young generation.
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Richi Agarwal said:   2 months ago
Hi Everyone,
I know everyone has their own views. I share my thought regarding the cashless economy. I know everything has two prospectors good or bad. it depends to the person. In my point of view, it is good for our generation. everyday new technology comes and I accepted.

Here we mention the Merits of a cashless Economy:

1. It is easy to carry and needs only the internet and is easily transferable.
2. It is safe for people who don't carry a lot of cash.
3. It saves paper.

Demerits of a cashless Economy.
1. Those people don't have much knowledge of how to use a cashless economy.
2. Old generation totally depends on the young generation.
3. People easily trap hackers.
4. physical crime rate is low but the digital crime level is high.

This is my point regarding the cashless Economy.
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Naina said:   3 months ago
With the day-by-day digitalization of the country, I believe it is an important step to go digital when it comes to using cash. Every new strategy has some advantages as well as some disadvantages, when talking about a cashless economy I believe the ways in which it has benefitted the people is more vast than its disadvantages.

Going cashless has made it easy for people to use their cash, they don't need to run to their nearest bank for money, and we can use it whenever and wherever we want. The amount of thefts that occur has also been removed. Though there are chances for online thefts that occur only when we are not attentive. Thus I believe going cashless is the right step that is needed for the betterment of the country as well as for the people.
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Deepthi Damalapati said:   3 months ago
For every topic there consists some pro's as well cons. So now we are going discuss about some pros of a cashless economy.

Nowadays all are familiar with digital transactions over through internet, it's a traditional way for this generation. We can also say that it is one-way development of our country, now everything is made online like glossaries, shopping, tech market, online food, also in small-scale businesses too. Indirectly all people are familiar with digitalization.

By this day by day technology increases and also provides jobs for job seekers, online transactions reduce the risk of theft of someone's property, "secured record is more beneficial than a piece of paper".

Now coming to the cons of a cashless economy, in our country, not all acquire an education. Literacy of India is somewhat low compares to all countries, some rural people may not be familiar with digitalization. They are at the exchange of currency. In order to keep looking after all these issues cashless economy fails in some places. This is all about my perception if it is any fault try to excuse me. Thank you.
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Pratiksha sanam said:   4 months ago
There are two sides of any coin same and there are two advantages and disadvantages of the cashless economy first I would like to my opinion on the positive side of the cashless payment digital payment system there are too many effective and time-consuming systems using that there is control many types of theft and crime people can easily pay in anywhere any time so they can save their time and utilise in a proper way also it will more helpful in the COVID time.

And there are some disadvantages also it will be digital payment and when the digital word comes there is most important internet and the internet not properly till now work in many villages so that their people no use that.

Also, it will be affecting to the high range so birds numbers are decreasing day by day so my opinion is it's useful but there are some advantages and disadvantages.
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