The Cash Tax Not Enough To Make It Go Extinct

from the money-down dept

A recent report from England quantified the amount of money the British government makes just from printing currency. As it turns out, it amounts to a fairly sizable tax. In addition to the money that the government makes, currency leads to a lot of other costs associated with storage and security. There's not much doubt that digital money is far more efficient and cost effective. But the transition to a cashless society is taking a long time. Part of the problem is that payment providers (banks, credit card companies, etc.) are able to levy high fees on each transaction. In many cases, they make it worthwhile for merchants to opt for cash, even with its carrying costs. Eventually, situations where you'll need cash will become quite rare, but as long as digital money carries significant "taxes" of its own, cash will be around for some time.

Filed Under: digital money