Banning the use of cash
Do you know that some US companies banned the payment of cash in some transactions? These are not isolated cases anymore. There are more cases on the banning of the use of cash – not only in the US but, unbelievably in other countries as well. This “disturbing” trend is spreading fast in other countries (in government entities as well as in private businesses). No matter how world governments disguise it – this is actually a war on cash… and a drastic and desperate attempt to herd everyone into the digital financial system.
This trend (banning the use of cash) that is hitting the world currency market should not be taken lightly. The so-called currency market is the market for money which is far larger than the stock market. The major players in this currency market are the banks including central banks. The currency market is the world’s largest and most important market. We cannot talk about problems in the economy without relating it with the currency market. When governments come out with policies to stimulate their economies – money is involved. When governments print currency units, money is involved. When governments promulgate policies on the so-called negative interest rates or zero interest rates – money is involved. When governments devalue their currencies to drum up demand – money is involved. When a Filipino businessman goes to a bank to exchange money earned in US dollar – money is involved. And when a country buys and sells currencies by the billions in its normal foreign exchange transactions – money is involved. There are hundreds of other transactions that cannot push through without using the medium of money. Not even the sari-sari store is exempted from using money. Even in death, funeral expenses have to be paid in money. This is just to emphasize the critical role of money in our life. This is the reason why the ordinary Filipino should be informed and educated on the movements/trends in the world currency market.
In the US, the American Institute for Economic Research reports that 93 out of every 100 dollars already exist electronically. Consider the report that the supply of digital dollars from 2011 soared 2,915% from US$33 billion to more than US$1.2 trillion in 2013, meaning that for every one physical dollar the US government creates 162 electronic dollars. How did this happen? Simple. Paying with credit card has been mushrooming in US as well as in other countries. Business transactions with the use of credit cards are now accelerating. We don’t have to go to the bank and withdraw physical money anymore. We even use our phone to download our old favorite songs. Convenient for everybody, isn’t it? We save time going to the bank… and also we save gas… and of course less stress. Multiplying the billions of people using credit cards with the trillions of transactions results in an explosion in the use of digital dollars. Yes, electronic money fuels more spending and spurs economic growth and expands the scope of the use of Internet. But there is a high price we have to pay – there is more government control of the economy and more intrusion by the government and private corporations in our financial privacy – since they will have access to every transaction we make (like access to where, when and what was purchased). And what about the increasing risk of hacking?
In one Internet report about cashless society, there is speculation that even “Australia could be completely cash free by 2020 accelerated by new technology that will soon be introduced by the Reserve Bank of Australia later in 2017.”
The shift from cash to digital/electronic is now unstoppable. In fact, the coming of the so-called cashless society has been predicted in the Holy Bible.
In the US, the institution that holds the distinction of having the starring role in the acceleration of the US shift from physical money to electronic money is the US Federal Reserve Bank (FED). Under the 1913 Federal Reserve Act, the FED operates without direct oversight from Congress or the President. No wonder the FED has almost total control of US money supply without any checks and balances. Through the FED computer system called FEDWIRE, FED has the capability to transmit money instantly between every major/financial institution in the world including Wall Street firms.
FEDWIRE facilitated more than US$713.3 trillion in new transactions. Yearly, FED processes more than 127,022,420 transactions, with an average value of these transactions amounting to US$5.23 million.
There’s an interesting study that was conducted at New York University Center for Genomics and Systems Biology. Based on an Internet report, it was found out that there are identified 3,000 kinds of bacteria in a $US one (1) bill. Not surprising because cash moves around from hand to hand all day long.
Finally, the transformation of money from the physical to the digital world has entered a fast stage of acceleration. There’s no doubt about it. Not only in US but in other countries as well, including the Philippines.
Have a joyful day! (For comments/ reactions please send to Ms. Villafuerte’s email: villafuerte_nelly@ yahoo.com).