In the digital age of electronic payments, cash continues to play a key function in ensuring financial security and independence Citizens. prof. Tomasz Rostkowski Warsaw School of Economics (SGH) notes the risks associated with the full removal of cash from circulation and argues that it is inactive the foundation of the economical system. The article will show why cash it should not be forgotten, despite the progressive digitalisation of financial services.
Cash and financial security
One of the key arguments put forward by prof. Rostkowski is the question immunity payment strategy Technical failure. In a time of widespread dependence on technology, specified as Internet banking is mobile wallets, network failures, Internet breaks is Blackouts may suspend payment. In specified situations where conventional payment schemes fail, cash remains the only means to carry out basic economical transactions.
Knowing the scale of the failure of electronic systems, specified as in 2022 the failure of the payment strategy PayPalwhich affected hundreds of thousands of users, cash constitutes independent alternativethat avoids paralysis in everyday life. W 2021 80% of transactions in Poland were carried out digitally, which emphasizes the increasing dependence on electronic systems, yet cash remains crucial in crisis situations.
Financial privacy – cash protects against surveillance
Another crucial aspect that the prof. emphasizes is privacy transactions. In the digital age, any of our activities can be recorded and the details of financial transactions are kept by banks and payment operators. Cash is the only way to make a transaction anonymous, without leaving a trace in the databases. This is important, especially in a increasing context Digital surveillance and concerns about over-control of our finances.
Popular central bank digital exchange systems (CBDC) may make fresh privacy challenges. prof. Rostkowski points out that specified systems can enable governments and banks to full control all citizen's transaction, which raises concerns about loss of financial privacy. In this context, cash acts as protection against fraud and uncontrolled supervision.
Cash as a form of social inclusion
Despite the increasing popularity of electronic payments, cash It is inactive preferred by many Poles, especially by older people, villagers or those who do not have access to modern banking infrastructure. From data collected by National Bank of Poland (NBP) It appears that in 2023 around 15% of Poles did not usage electronic banking and 1.7 million people He inactive prefers to pay conventional methods.
Professor Rostkowski points out that the full removal of cash can exclude part of the society, especially the aged or little wealthy. Social inclusion in payment circles, it is crucial to avoid marginalisation of certain social groups which are incapable to adapt to digital payment forms.
Cash and social control
Professor Rostkowski besides points out, for example, Canadawhere the government decided to usage the banking strategy to restrictions on access to finance protesting citizens. As part of this operation, bank accounts of people who participated in protests against government policy were frozen. This phenomenon shows how digital payment systems can be utilized to Citizens' controland thus change the attitude to privacy and individual freedom. Cash, which is the mediate independent from digital systems, provides protection against specified abuse of power.
Cash and the future of digital payments
Although prof. Rostkowski does not deny improvement modern payment technologies, believes that you should keep balance between innovative solutions and conventional forms of payment. Cash safety mechanism and an alternate in crisis situations, which is peculiarly crucial at a time erstwhile digitalisation He's moving fast. It is worth noting that maintaining cash in circulation does not mean opposing the improvement of technology, but constitutes risk shield excessive control of citizens.
Professor Tomasz Rostkowski points out the crucial function of cash in the financial system, stressing its importance in the context of safety, privacy and social inclusion. Although digitalisation of payments has its advantages, cash remains an essential component in providing stability and financial independence. Maintaining cash in circulation not only protects citizens from risks related to method failures, but besides counterbalances the increasing state control over finances.
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