Toward the end of last year, the big economic story that was taking place in the background of the Trump election win was India’s cash experiment: their de-legal-tenderising of 85% of their cash in circulation. I wrote two posts on this, the first about India’s experiment, and the second about the risks of society going cashless:
Then The Money Project released this awesome infographic yesterday, The Global War on Cash:
I know there have been a few weeks of infographics on the blog, but I really thought that this particular one was:
- Excellent; and
- Quite important.
The trouble is, both governments and central banks have a clear vested interest in society abandoning physical cash. And that’s fine in some ways, but there are going to be consequences. And not enough people are thinking about them.
In particular, it locks you into the financial system – and you can’t get out when it goes bad. Just have a look at what is happening in Zimbabwe’s ‘cashless’ society…
Rolling Alpha posts opinions on finance, economics, and sometimes things that are only loosely related. Follow me on Twitter @RollingAlpha, or like the Rolling Alpha page on Facebook at www.facebook.com/rollingalpha.