Cash fuels most black market activities because it changes hands without leaving a trace. So what will happen if or when all that cash is converted into global digital currency?
One hypothesis states that crime rates will remain the same due to tax evasion and offshore bank accounts to name a few. A cashless society may even increase financial crime, according to Ellen Zimiles, a lawyer and expert on fraud and money laundering. Waldman states, "She suspects that financial crime would increase in a cashless society, since it’s easier to move electronic currency fast." This is a great point. This faster future of transactions would spill over into major crimes that could possibly be more difficult to detect than the normal briefcase of money exchange. Also, a good point that was made that the black market would simply switch to another form of value such as precious metals.
The other theory suggests that a cashless society would indeed reduce fiscal crimes solely due to the fact that it is traceable. The inevitable trails allow law enforcement to detect and put a stop to suspicious activity just as fast as it is committed. The black market would fall weak because without cash, it would be deemed less trustworthy than it already is.
My opinion is that I do believe that civil crimes would reduce in a cashless society, but criminal activity would remain the same. Nations are already on the road to becoming coinless(Canada) so of course one day it will be completely paperless. Cashless, yes. Crimeless, never.
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I agree with the first hypothesis, that if cash was eliminated from our society, the rates of financial crimes would either stay the same or maybe even increase. It's so much faster than trading actual cash between people. While transferring currency digitally can be traceable, I think that criminals in the black market will find better ways around that to make it non-traceable. I'm sure those that are experts in fraud have something else up their sleeves. Just because there is no paper currency doesn't mean that financial crimes will stop.
ReplyDeleteThat is great point, Bianca. Criminals would defintely find better ways to hide their digital trace. Perhaps identity theft would rise because the increased demans for a fake names to receive dirty money from!
DeleteI feel as cashless transactions become commonplace, that exchanges will become more visible and traceable. Criminal activity may decline due to financial exposure. The Government could tract, monitor, and expose criminal organizations. There is a privacy issue, but I feel, if it would help to reduce crime, the Government should be able to investigate suspicious spending.
ReplyDeleteWithout a doubt there would be financial transparency that would come with some privacy issues, and I'm sure any successful business would have to have the users' best interest at hand.
DeleteBut also remember that since the government would have all the power to track, monitor, and expose these financial crimes, would come the power to support malicious activity as well!
I do agree with your points! While we don’t anticipate a massive switch from cash to cards in the name of crime prevention, we are encouraged by these acknowledgments of the benefits of digital currency.A Cashless Society is a Crimeless Society, Back in my country, we use cash all the time in the daily life, a lot of cash and coins, it's easy to lose money! I think digital card is more safe!
ReplyDeleteWenyi Chen
I agree with both sides! A cashless society would make it easier for the authorities to track any suspicious activity. BUT criminals will always find a new way to bypass and avoid the authorities in order to make their money. I feel that moving into a cashless society would make it harder on people to manage their money. I know that it is much easier for me to pay for something using my debit or credit card. I am a lot more hesitant to pay for something with cash because I can actually see my money going into someone else's hands. I feel that although this cashless society would help law enforcement it would harm the rest of us. Lets face it, we should be able to be responsible adults and properly keep track of our spending but that hasn't been the case. So many people are in credit card debt...
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