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Topic: Going cashless: How far will Canadians go in parting with their bills and coins?  (Read 424 times)
walktothewater
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Interesting read, thanks for sharing.

It is indeed an alarming trend for anyone who prefers to use cash (like seniors & people who are afraid that too much electronic = a slippery side into debt: like myself). 

It is a subject discussed pretty extensively (& sometimes heatedly) over in the WORLD threads of CCF (& no wonder).  I find it a shame how society (& even this paper) suspect the rise of large denominations being retained in circulation as a direct correlation to organized crime hoarding.  I believe a lot of people don't necessarily trust banks, the stock market or other financial institutions & may hoard some of the more commonly accepted currencies (like Pound, US $ & Euro).

For another BOC researcher's take:  https://www.bankofcanada.ca/search/?esearch=cashless+ & read the PDF research doc "Is a Cashless Society Problematic?" by W Engert, B Fung & S Hendry

I think the BOC researchers look at our trend towards a cashless society as troublesome for the BOC (what will their function be if no cash?) & slightly problematic for society in times of troubles (since electronic $ is no good in emergencies/if computer systems are out, etc).  Other papers I've read also recommend people think twice about it since hacking into so-called 'secure' systems is always happening so to rely on one's source of wealth primarily by one method could be dicey.
Seth
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I use credit cards to pay for almost everything but always have at least $100 worth of cash on me. Last week the payment network went down in the supermarket and credit and debit cards could not be processed. Cash only. I had cash to pay for my $45 purchase. Almost nobody else had enough cash for their purchases, not even the lady buying just five oranges.

People who think that the electronic payment network will always be up and running need a reality check. There will always be a need for physical cash.
« Last Edit: February 04, 2019, 12:27:23 am by Seth »

Track your Canadian currency online!

http://www.whereswilly.com
Dean
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I cannot tell you how irritating it is when an establishment does not take cash.
At a recent Leaf game, most Pizza Pizza and other concession stands are now "cashless" and I think that within a few years, fans will not be able to pay for anything anywhere in the Scotiabank Arena using cash.

As usual, any protests fall on deaf ears.

I like to use cash and I will continue to do so until I can't anymore, which I hope is a long time from now.

Rupiah
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It is interesting to note that while the BoC is report less use of cash the number of cash in circulation in $ value has increased 28% from 2013 to 2017. This is well over twice the rate attributable to increase in GDP.


Is it under the table type of situation? Is it under the mattress type of situation?


As the authors of the BoC paper have stated things could change dramatically if the interests go up and if it under the mattress type of scenario.


The BoC is clearly looking at digital currency of its own. Without the money they are making from the seignorage their existence would be otherwise threatened.




Wonder what paper money would say if it could talk?
Rupiah
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People who think that the electronic payment network will always be up and running need a reality check. There will always be a need for physical cash.

This sentiment is interesting. Not too long ago credit cards were "Swiped" on the machines. Maybe some of these grocery stores have them lying around in case of emergency.

Its like saying we will always have wired phones because what happens if the power goes off and wireless does not work. Wired phones are relics now. The possibility of occasional events of these types does not hold back technology in decimating old ways of doing things.

I don't think electronic payments not working occasionally will prevent a society from going cashless. Otherwise we would still be carrying gold and silver in our pockets.

Of course that does not mean alternative ways of addressing the problem should not be considered.

Wonder what paper money would say if it could talk?
Rupiah
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I cannot tell you how irritating it is when an establishment does not take cash.
At a recent Leaf game, most Pizza Pizza and other concession stands are now "cashless" and I think that within a few years, fans will not be able to pay for anything anywhere in the Scotiabank Arena using cash.

As usual, any protests fall on deaf ears.



Think of it in positive light - if there is no power all the Pizza will be free. I am sure they'd rather give it away than throw it away. ;)

Wonder what paper money would say if it could talk?
Dean
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Think of it in positive light - if there is no power all the Pizza will be free. I am sure they'd rather give it away than throw it away. ;)

You don't know MLSE very well...   :D  They'd never give anything away!  When I worked at the ACC, the cleaners used to help themselves to the leftover food from the concession stands and box suites all the time--it was good food---until one time, somebody got food poisoning and sued.  Then the order came down that all food had to be thrown away.  MLSE has backed off from that stance recently and now "donates" leftover whole pizzas and other untouched food to Second Harvest and other charitable organizations.

If the pizza has one slice out of it, then it goes into the garbage and employees are forbidden from taking anything home.

walktothewater
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Quote
People who think that the electronic payment network will always be up and running need a reality check. There will always be a need for physical cash.

- I could not help but think of this thread while in the Philippines.  I could not use plastic for 90% of my transactions (& if I insisted on using plastic at any tourist spot- often charged a surcharge).  So I guess, the quote above must run through their minds, especially during the rainy season when they're prone to cyclones, the system down, etc.
AJG
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If Canada ends up going cashless, i bet the BoC will remove legal tender status from all existing banknotes and coins, forcing citizens to bring their bills and coins to the bank and redeem for face value.

But before that was to happen, I wouldn't be surprised if older versions of the current denominations will lose legal tender status.

I think a universal card for electronic payments is a good idea.  But they would have to make it very secure in order to prevent robbery and debit card fraud.  Maybe use faceprints on all cards, and all debit terminals should have cameras inside to determine if the facial structure matches what is recorded on the card, and if it doesn't match, the card would be denied.
Marc
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If Canada ends up going cashless, i bet the BoC will remove legal tender status from all existing banknotes and coins, forcing citizens to bring their bills and coins to the bank and redeem for face value.

Yeah.  Coercion would be the only way to accomplish that.

Marc :)
 

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