April 21, 2023
Marketplace recently published an article featuring Jay Zagorsky, Associate Professor of Markets, Public Policy, and Law discussing the emergence of digital transactions and its impact on paper money usage.
With the increased growth of cashless payment methods, such as Venmo and PayPal, 41% of Americans use these electronic payments compared to cash in a given week. Despite this, experts argue that cash will always be around to limit issues in security, accessibility, and privacy.
Zagorsky explained that there is a responsibility for the IRS to make cash payments even more seamless to promote the use of it amongst citizens. “And that’s because as we move toward cashlessness,” he said, “we need to take into account the aforementioned disadvantages, like weather-related disasters and the exclusion of the unbanked.”
Uncontrollable factors, like weather related disasters, also impact the digital currency world, proving that cash will always be necessary. The lack of paper money could leave citizens with no way to pay, as many people aren’t connected to checking or savings accounts.