Money was once always in a physical form. But now with the transformation to a digital currency Money or Cash to be more precise is now becoming harder to see.
Have you ever gone to the Supermarket or other shopping center and seen a busker, reaching into your pockets and there is nothing there? Do you even look anymore?
This may not be because you have no money, but because its digital currency there is no way to hand it to the busker.
Banks now charge a "Cash Handling Fee" which is kind of Ironic considering a bank is actually designed and meant to handle cash. If they weren't handling cash I would be worried.
Should we be worried? I don't know the answer fully. I think we do need to be wary, though. Being a bunch of numbers it's easy for it to disappear or for it to become lost. It's also hard to tell where the physical cash is.
If all customers of a Bank went to withdraw the physical money from their accounts they simply couldn't banks don't hold or store enough money. So it relies on trust. Is it something we should fully trust, though? I don't think so. We need tight controls over what the banks can and can't do with our hard earned money.
When companies or Organizations (especially Government Organizations) go cash-free then we should be extremely worried. Forcing people to a Digital Currency isn't ethical, Not safe and no one should ever be refused the right to pay with Cash. This is the Money of circulation after all.
Fairfax Media reports, "Waikato District Council, has gone cash-free in its Huntly office and library" and "reported a retired man was shocked when his cash was rejected for paying a telephone bill at the Spark store".
I believe this is totally wrong. When you go to a store and purchase something. You are creating a Debt, until such time as it is paid no matter how long or short it is. There for a form of Legal Tender can not be refused.
The reserve bank states on their website "The rules of legal tender say that cash cannot be refused in payment for a debt".
It goes on to further state "In the case of purchases from a shop, however, no debt is incurred by the customer at the time they offer to pay for goods with cash". This, of course, is kind of ironic and would only apply to cash sales, or where there is no need for GST registration etc. But to process a Digital or Electronic payment, first, a Debt has to be created. Otherwise, how do we know how much to pay? A digital payment using a Point of Sale system will offer a Total to Pay. It's already created the debt. And if it is a manual transaction a Shopkeeper has to have made some method to determine the amount you owe to charge you. And yes this forms a Debt. As you owe the business or the organization until the payment has been completed. Whether this is in seconds or years it doesn't matter. Fact is a Debt exists and therefore can not refuse a cash payment.
So although Cash is a Dying form. A business or an organization can not refuse to accept CASH. If we go down this avenue we put even greater control to the banks, where we should be putting restrictions on them instead.
First Published by D Blair, Hamilton @ 1:02PM 03/01/2016 Last Updated @ 1:02PM 03/01/2016