Billionaires are known for not keeping a lot of spending green in their wallets. But that’s not why Bill Gates hates cash. He hates it because of its effect on people at the opposite end of the wealth spectrum—the world’s poor and unbanked. The Better Than Cash Alliance, which was founded last September and is partially financed by the Bill & Melinda Gates Foundation, hosted a breakfast today at the World Economic Forum in Davos, Switzerland. Speakers from the Philippines, Colombia, and the U.S., among other countries, made the case for why electronic transactions are better than cash payments.
Top five reasons, according to the alliance:
Transparency: Less corruption and theft when payments can be easily tracked. In Afghanistan, U.S. aid agencies use it so workers aren’t so vulnerable to robbery.
Security: The money gets where it’s supposed to go.
Financial inclusion: Electronic payment is a way for unbanked people to establish a record of on-time payment of their bills. This can be an “on-ramp” for them to get other services, such as loans, speakers said.
Cost savings: Moving physical cash around is costlier than zipping electrons. Many poor people, however, still find it cheaper to use cash, because some cashless networks charge high fees.
Access to new markets: This benefit is mainly for providers of financial services.
Kenya is a role model for the developing world when it comes to cashless payment. Its M-Pesa network, launched in 2007, has agents “on every block,” says Neal Keny-Guyer, chief executive of Mercy Corps, a nonprofit that’s a member of the alliance. Mauricio Cárdenas, Colombia’s minister of finance and public credit, said in an interview that he hopes within the year the national legislature will pass a law allowing nonbanks to take in cash and issue electronic vouchers.
The key is ensuring that the people who take in the cash are as well-supervised as bank tellers. “We see this as a first step,” Cárdenas said.
Bill Gates Hates Cash. Here's Why - Businessweek
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Okay, now there's this concept of having a cashless society. There's still money but it's all going to be electrionic. And on paper (no pun intended), it looks great. You can't rob someone of their money. You can't embezzle money. You can't pay for illegal things like drugs or a 'ho working on the street. You can stop the sale of alcohol to an alcoholic because the transaction cannot be done.
Of course, if there's a will, there's a way. People are going to barter for products and services.
But mark my words, if we get to that point, there are going to be people who are going to control who gets money and who doesn't and it's going to suck for those on the other end of the stick. Paying and getting paid, buying and selling. So, similar to getting your bank accounts frozen during a criminal trial, someone is going to be able to control your account, and there won't be any cash to buy something if you want it.
So, if you want to donate money to XYZ and the government doesn't like that church or organization, they are going to freeze the account of the organization so they can't get money. If the government doesn't like you, they'll freeze your account so you can't buy anything like food or pay bills.
And in order to keep the security of your electronic bank account so someone can't steal your bank card or pretend to be you (like an evil twin), your identity will be verified by going to a government office, get your DNA/fingerprint scanned and then that person be given a corresponding code that will be attached to that person. This corresponding code will be like a secondary ID that is used with a bank card and will be like a 666 tattoo or something like that.
Anyway, I'm not saying it's the truth. But that's my first conspiracy theory. Have a happy Monday.
Top five reasons, according to the alliance:
Transparency: Less corruption and theft when payments can be easily tracked. In Afghanistan, U.S. aid agencies use it so workers aren’t so vulnerable to robbery.
Security: The money gets where it’s supposed to go.
Financial inclusion: Electronic payment is a way for unbanked people to establish a record of on-time payment of their bills. This can be an “on-ramp” for them to get other services, such as loans, speakers said.
Cost savings: Moving physical cash around is costlier than zipping electrons. Many poor people, however, still find it cheaper to use cash, because some cashless networks charge high fees.
Access to new markets: This benefit is mainly for providers of financial services.
Kenya is a role model for the developing world when it comes to cashless payment. Its M-Pesa network, launched in 2007, has agents “on every block,” says Neal Keny-Guyer, chief executive of Mercy Corps, a nonprofit that’s a member of the alliance. Mauricio Cárdenas, Colombia’s minister of finance and public credit, said in an interview that he hopes within the year the national legislature will pass a law allowing nonbanks to take in cash and issue electronic vouchers.
The key is ensuring that the people who take in the cash are as well-supervised as bank tellers. “We see this as a first step,” Cárdenas said.
Bill Gates Hates Cash. Here's Why - Businessweek
>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>>
Okay, now there's this concept of having a cashless society. There's still money but it's all going to be electrionic. And on paper (no pun intended), it looks great. You can't rob someone of their money. You can't embezzle money. You can't pay for illegal things like drugs or a 'ho working on the street. You can stop the sale of alcohol to an alcoholic because the transaction cannot be done.
Of course, if there's a will, there's a way. People are going to barter for products and services.
But mark my words, if we get to that point, there are going to be people who are going to control who gets money and who doesn't and it's going to suck for those on the other end of the stick. Paying and getting paid, buying and selling. So, similar to getting your bank accounts frozen during a criminal trial, someone is going to be able to control your account, and there won't be any cash to buy something if you want it.
So, if you want to donate money to XYZ and the government doesn't like that church or organization, they are going to freeze the account of the organization so they can't get money. If the government doesn't like you, they'll freeze your account so you can't buy anything like food or pay bills.
And in order to keep the security of your electronic bank account so someone can't steal your bank card or pretend to be you (like an evil twin), your identity will be verified by going to a government office, get your DNA/fingerprint scanned and then that person be given a corresponding code that will be attached to that person. This corresponding code will be like a secondary ID that is used with a bank card and will be like a 666 tattoo or something like that.
Anyway, I'm not saying it's the truth. But that's my first conspiracy theory. Have a happy Monday.
