The Importance of Cash in a Digital World
The world is rapidly becoming digital, with more and more people using cards and phones to make payments. However, Canadians are not ready to give up on cash just yet. In fact, despite the rise of digital payments, the nominal value of money in the average Canadian’s wallet or purse has more than doubled since 2009.
The Benefits of Cash
Cash offers several benefits that digital payments do not. For one, it is a resilient form of payment that does not require electricity, a communications network, or a secure payment system to function. This makes it a reliable option in times of crisis, such as natural disasters or power outages. Additionally, cash is a hard-cap budgeting tool, allowing individuals to only spend what they have on hand. This can help prevent overspending and debt.
Cash and Security
Cash also offers a level of security that digital payments do not. It is difficult to hack into a cash transaction, and it is not vulnerable to cyber attacks. This makes it a popular option in countries where digital security is a concern. In Ukraine, for example, cash use spiked following the Russian invasion in 2022.
The Risks of a Cashless Society
Despite the benefits of cash, the Canadian government is proposing measures that could make it more difficult to use. Bill C-2, introduced in June, proposes to make it illegal for any person, business, bank, or charity to accept cash payments of $10,000 or more. This could have serious consequences for businesses that rely on cash transactions, and could even lead to an increase in crime.
The Impact on Vulnerable Groups
A cashless society could also have a disproportionate impact on vulnerable groups, such as the elderly, low-income individuals, and those living in rural areas. These groups often rely on cash for their daily transactions, and may not have access to digital payment options. A 2023 report by McGill’s Max Bell School of Public Policy warned against "sleepwalking" into a cashless society, given the outsized role bills play in the lives of many disadvantaged groups.
The Need to Protect Cash
It is therefore crucial that we take steps to protect the use of cash in Canada. This can be done by opposing measures that restrict the use of cash, such as Bill C-2, and by promoting the benefits of cash to individuals and businesses. We must also ensure that vulnerable groups have access to cash and are not left behind in a digital world.
What You Can Do
So what can you do to help protect the use of cash? One simple step is to use cash regularly. Try to make at least one cash transaction per week, whether it’s buying a coffee or paying for a meal. This will help to keep the infrastructure for cash transactions in place, and ensure that it remains a viable option for years to come.
Conclusion
In conclusion, cash is an important part of our economy and our daily lives. It offers a level of security, resilience, and budgeting control that digital payments do not. While the Canadian government may be pushing for a cashless society, it is up to us to protect the use of cash and ensure that it remains a viable option for years to come. By promoting the benefits of cash and taking steps to protect its use, we can help to create a more inclusive and resilient economy that works for everyone.
