The concept of a cashless society has been gaining traction in recent years, especially in forward-thinking countries like Canada. It is becoming clear that using paper and coins to pay for things in the internet era is antiquated, and some analysts believe that most of the world could move away from cash by 2030.
Canada is expected to be one of the countries leading the world into this new future, as the online infrastructure here is immaculate. According to a blog from Facilero, there is an average of four contactless payments per person in the country. On top of that, Canadians have access to a vast range of digital payment options.
Why is Cash an Outdated Payment Method?
Ever since the early days of civilisation, people have been using currency to buy and sell goods and services. Originally, the coins themselves were inherently valuable because they were made of precious metals. However, when the concept of money started to become widespread and more of it was needed, it made sense to use cheaper metals and paper to represent its value.
The cash that exists in today’s society is basically worthless on the face of it. It only holds value because as a world we have agreed that it does. Banknotes were first introduced in 7th-century China, and at the time, people may have thought the concept crazy. Indeed, it could have been like explaining Bitcoin to someone living today who still pays for everything with physical money.
Cash was the best solution that our ancestors had to perform transactions, but that’s no longer the case. Now that the internet has come along, there are more efficient ways to move funds around. Paper and coins are becoming more of an inconvenience. Moreover, this form of money can be lost or stolen. That’s not to mention the unhygienic nature of these items being passed around by innumerable people.
What are the Best Alternatives to Cash?
The fact that we have so many alternatives to cash in the modern age makes this the perfect time to start moving away from this form of payment. The rise of eCommerce and online businesses brought about a need for varying payment systems, and developers in the fintech industry duly obliged. Aside from famous credit card companies like Visa and Mastercard, platforms for transactions such as PayPal and Skrill are now globally recognised.
Some people believe that along with going cashless, the world should get rid of individual currencies for different nations. Certainly, in an online setting, it would make sense for there to be a unifying global currency. Bitcoin and other cryptocurrencies aim to fulfil this need, and these options have taken off in recent years as well. The idea of an e-currency may have seemed like a novelty when Bitcoin was first conceived in 2009, but now the payment method is recognised around the world as a viable option.
Indeed, some of the planet’s biggest companies and industries have started to accept Bitcoin payments, with the likes of Microsoft and Starbucks famously on board. The gaming industry offers players plenty of ways to use Bitcoin, with online casinos leading the way. That’s because it’s easy to play with, and this is illustrated by a handy infographic by Bitcoincasinowiz. It’s simply a case of choosing a wallet, buying some crypto, making a deposit at an online casino that accepts crypto, and then playing table or slot games. The advantages to using Bitcoin include fast transactions, higher security, and an extra level of trust.
Canada Likely to Be One of the First Nations to Go Cashless
As we always emphasise here at Nilsen Report, Canada is at the forefront of the technology industry and one of the world leaders in various sectors. More than 1.2 million people here already own cryptocurrency, and that figure is steadily rising. A whopping 31 million of the 38 million population in the country own a smartphone now, with internet penetration at around 98 percent. Those numbers underline how easy it would be for the country to go cashless, as nearly everyone already has the tools required to perform online transactions wherever they are.
There are still quite a few Canadians who want to hold on to cash for the time being, and more than 50 percent of people surveyed recently said they had no plans to go cashless in the next five years. Other countries like Norway and New Zealand are leading the way. However, when those dominoes fall, Canada could be swift to follow suit.
It is getting much harder to justify the existence of cash in the modern age, especially when there are so many more efficient alternatives available. As the world gradually moves towards becoming cashless, Canada is likely to be one of the leading countries in the digital revolution.