As many analogue technologies enjoy a renaissance—with younger generations discovering the pleasures of books, vinyl and acoustic instruments—is the world also ready to revisit the joys of cash? Economics professor Jay L. Zagorsky says the benefits of physical money are too critical to wait and see, and now is the time to ‘use it or lose it.’
Writing for The Conversation, Zagorsky, Clinical Associate Professor of Markets, Public Policy and Law at Boston University, says he ‘was amazed by the mixed signals [he] saw in many storefronts’ in Seattle, with shops displaying signs saying they are ‘welcoming and inclusive’ right next to a sign saying ‘no cash accepted’. The message seems to be that individuals without bank accounts or cashless means of payment are not, in fact, welcome.
Zagorsky observes around six million U.S. households are unbanked—roughly equal to the population of Wisconsin—with the figure standing at over one billion unbanked worldwide. In the U.S., reasons for this are myriad, with some people, such as unhoused individuals, unable to meet the requirements to open an account, those on very low incomes finding the fees prohibitive, some being too sceptical of the banking industry, and others seeking to preserve their financial privacy.
When businesses refuse cash, these unbanked people either cannot access them, or are forced to use other payment methods such as prepaid debit cards, which can be costly. He cites an example of Walmart’s reloadable basic debit card, which costs $1 to buy and charges $6 per month in fees, plus $3 every time it’s loaded with cash at a register.
