No cash in hand
Stockholm is moving to eliminate hard currency. But besides undeniable advantages, the tendency towards a cashless economy has a few hidden glitches.
- Thursday, 01 March 2018
Alittle more than a year ago, India decided to undertake a very risky experiment which involved the demonetisation of its economy in an attempt to reduce the country’s dependence on cash. By so doing, Delhi also hoped to put a few spanners in the works against corruption and informal payments. The experiment has thus far not produced the hoped-for results, partly because it was badly planned. The elimination of some of the cash denominations (the most common ones used in the informal economy went out of circulation overnight) was too sudden, leading to a contraction of the economy as it was suddenly deprived of the necessary means for economic transactions, particularly in rural areas.