The Economic Benefits and Social Risks of a Cashless Society

Wen Ye

doi:10.54097/2mxegf86

Authors

Wen Ye Affiliated School of Jun for Hongkong & Macao, Guangzhou 511458, China

DOI:

https://doi.org/10.54097/2mxegf86

Keywords:

Cashless Society, Financial Inclusion, Financial Surveillance

Abstract

This DRP discusses advantages and disadvantages of a cashless society. Cashless systems decline service costs, expand inclusive finance for disadvantage groups, strengthen household resilience and raise GDP by easing business lending. However, digital payments weaken spending restraint, fuel overconsumption and risky household debt. Traceable transaction data also triggers privacy leaks by corporations and governments. It concludes complete cash elimination is undesirable, retaining cash and proper regulation balances overall financial development.

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