Digital cash has great potential. It allows an individual to save money, manage funds and even break the cycle of poverty. However, It is not without risks.
More money is going digital, hold that thought. This doesn’t mean that cash is dying, no it’s not. Cash transactions still make up of up to 85% of the retail payments worldwide. People are at ease when they receive immediate cash payment for goods and services rendered. Currencies stored digitally does not guarantee that paying bills, managing funds or buying goods will be easier.
Studies have shown that those benefits are able to break the cycle of poverty and also make it for people to save, pay and be paid.
Mobile money can help the poor avoid expensive fees for cashing checks. If you are paid well, digital cash gives you a wide range of choices. Well, maybe too many choices. This could be to pay for stuff, buy a car, phone, dress etc.
Various apps, services have been generated to give people who don’t have bank accounts ways to more securely move their money around. Some of these concepts come with new risks, though, including one idea that uses volatile cryptocurrencies to offer more financial inclusion.
Digital money is definitely revolutionary and would also change the way we transact with money.