The Pros and Cons of Digital Currency and the Removal of Cash

A World Without Cash?

The idea of a cashless society has gained momentum over the past decade. Driven by advances in technology, policy shifts, and changing consumer behaviour, digital currencies and payment systems are on the rise. Central banks, fintech start-ups, and tech giants are shaping a future where physical money may become obsolete.

But what does that really mean for us as individuals, for businesses, for governments — and for society at large?

This article explores the key benefits and drawbacks of digital currency and the potential disappearance of cash, equipping you with a deeper understanding of what’s at stake.

Part 1: Understanding Digital Currency

Digital currency is money in purely electronic form. It can include:

>>> Central Bank Digital Currencies (CBDCs): Government-issued digital currencies like the proposed Digital Pound or Digital Euro.

>>> Cryptocurrencies: Decentralised assets like Bitcoin, Ethereum, etc., run on blockchain technology.

>>> Commercial Digital Money: Bank deposits or e-wallet balances (e.g., PayPal, Apple Pay, and Revolut).

What unites them is their lack of physical form. They’re intangible, data-based, and transacted electronically.

Part 2: Why Is the World Moving Away from Cash?

Convenience

>>> Tap to pay.

>>> Instant transfers.

>>> Borderless spending.

Efficiency

>>> Reduced costs for printing, transporting, and securing physical cash.

>>> Streamlined accounting and reporting.

Policy Goals

>>> Better visibility for taxation and anti-money laundering.

>>> Easier control of monetary policy via programmable money.

Consumer Behaviour

>>> Pandemic-driven hygiene concerns accelerated contactless usage.

>>> Younger generations increasingly rely on mobile payment solutions.

The Advantages of Digital Currency

1Convenience and Speed

Digital payments eliminate the need to carry coins or notes. Transactions are instant, recorded, and easy to trace.

2Cost Efficiency

For governments, digital currency reduces overhead costs associated with minting, printing, and distribution.

Financial Inclusion (Potentially)

With smartphone penetration rising, even underserved populations could access digital wallets — no need for traditional bank accounts.

Reduction in Crime (Possibly)

Less cash may mean less theft, black-market activity, and untraceable transactions.

Transparency and Accountability

Governments could trace public funding, reduce tax evasion, and manage economic flows more efficiently.

Programmability

Digital money can be “coded” with rules — for example, stimulus funds that expire unless used within a timeframe, or restricted to certain sectors.

The Hidden Costs and Critical Concerns

Despite the benefits, the shift to digital currency comes with significant trade-offs.

Loss of Privacy

Cash is anonymous. Digital currency isn’t. Every transaction could potentially be monitored, recorded, and analysed by corporations or governments.

Serious Risk of Overreach

Authoritarian regimes or overzealous regulators may use programmable currencies to control how people spend, restrict dissent, or impose limits.

System Vulnerabilities

What happens when systems go down? Power outages, cyberattacks, or simple technical glitches could block access to money.

Exclusion of Vulnerable Populations

Not everyone has smartphones, internet access, or digital literacy. Older adults, rural communities, and the homeless may be shut out.

Centralisation of Power

CBDCs could give governments unprecedented control over economic life — from negative interest rates to asset freezes with a click.

Commercial Surveillance

Big Tech and banks already track user behaviour. Digital-only currency could turbocharge surveillance capitalism.

Monetary Manipulation

Programmable money may be used to “nudge” behaviour or impose time-bound conditions — essentially rewiring how markets operate.

The Removal of Cash — Is It a Choice?

Many nations claim digital currency is “an option,” but critics argue we’re being nudged into a cashless future without genuine debate.

What’s Happening Now:

>>> Sweden is nearly cashless.

>>> China’s digital yuan is already in live trials.

>>> The UK, EU, and US are exploring CBDC frameworks.

>>> Some shops and services refuse cash — by policy or design.

Societal Implications

Freedom vs. Control

The biggest concern isn’t the currency itself — it’s the infrastructure of control. In the wrong hands, digital-only systems could limit personal freedom, dissent, or independent economic activity.

Economic Redesign

Some argue we need this shift to reset flawed models. Others fear it’s a financial Trojan horse enabling wealth extraction and centralised power.

Resilience

Cash is resilient. It doesn’t need the internet, electricity, or central servers. It’s an anchor in crisis.

A Balanced Path Forward

A truly fair financial system must be:

>>> Inclusive: Ensuring access for all.

>>> Private: Preserving anonymity options.

>>> Resilient: With offline modes or hybrid systems.

>>> Transparent: Developed with public debate, not just central bank policy.

Digital currency can coexist with cash — if we demand it. That balance ensures liberty while embracing innovation.

We Must Have This Conversation

The transition to digital currency isn’t just a technical shift — it’s a philosophical and societal one. It affects freedom, control, privacy, and democracy. The benefits are compelling. But so are the risks.

We must ask:

>>> Who decides what’s programmable?

>>> Who audits the system?

>>> How do we ensure no one is left behind?

>>> What happens when dissent means digital exclusion?

If we don’t ask these questions now, the decisions will be made without us.