Here is what I came across on this issue..
"America may soon be poised to go cashless. Now, the nation must decide if ditching the dollar bill is a good idea.
Two-fifths of Americans used no cash in 2022. Back in 2015, by contrast, fewer than one-quarter of consumers went cashless, according to Pew surveys. In a separate poll, three-fifths of consumers told Gallup they used cash only on occasion last year, twice the share of five years ago...
Consumers used cash for 20 percent of all payments in 2021, down from 31 percent in 2016, according to the Federal Reserve. In place of cash, shoppers favored the credit card (28 percent) and debit card (29 percent).
'People have literally been changing the way they pay for goods and services,' said Lee Rainie, director of internet and technology research at Pew.
COVID-19 hastened the cashless trend. The pandemic inspired fears, largely misguided, that the virus might spread on currency. Many consumers stopped carrying cash, spurring a national coin shortage.
'I think its very much like the jump in e-commerce we saw during the pandemic,' said Ted Rossman, a senior industry analyst at Bankrate, the financial services company. ?I think we?re going to continue to see a slow evolution away from cash. .
Take note, however, that the George Mason scholar shares the ACLU?s concern over shrinking privacy in financial transactions.
To illustrate the vulnerability of consumer data, in a widely circulated 2019 article, a Washington Post columnist purchased a pair of bananas at a big-box retailer with his credit cards.
'You might think my 29-cent swipe at Target would be just between me and my bank,' he reported. 'Heavens, no. My banana generated data that?s probably worth more than the banana itself. It ended up with marketers, Target, Amazon, Google and hedge funds, to name a few.'
Credit card companies and retailers conspire to sell consumer data to advertisers, who use it to predict ? and even to subtly influence ? the shopper?s next move. In this transaction, the consumer is the product.
To counter the data spies and retain a modicum of free will, consumer advocates say, read the fine print on your card agreement, consider paying in cash, use a robust ad blocker and avoid clicking on anything that looks like a promotion.
'All this data, its not empowering you, its empowering somebody else,' Stanley said.
Soon, even the federal government may be able to harvest consumer data. Late last year, the Fed announced a pilot program for a central bank digital currency.
The digital dollar would offer a federal alternative to cryptocurrency, backed by the government. Citizens could open a bank account directly with the Fed, accessing digital funds on an app or a prepaid card, said David Waugh, managing editor at the American Institute for Economic Research, in a column for The Hill.
'Cash remains our strongest tool to promote financial inclusion while preserving privacy and security, and new digital tools should emulate it? not replace it,' said U.S. Rep. Jes?s ?Chuy? Garc?a, an Illinois Democrat, in support of legislation to develop a digital dollar.
But a digital dollar would also give the government 'direct control' over citizens bank accounts,' Waugh writes. Chinas government has touted its own digital currency as a means to control its citizens. "
.. https://thehill.com/changing-americ...shless-future-is-here-so-is-big-brother/
"America may soon be poised to go cashless. Now, the nation must decide if ditching the dollar bill is a good idea.
Two-fifths of Americans used no cash in 2022. Back in 2015, by contrast, fewer than one-quarter of consumers went cashless, according to Pew surveys. In a separate poll, three-fifths of consumers told Gallup they used cash only on occasion last year, twice the share of five years ago...
Consumers used cash for 20 percent of all payments in 2021, down from 31 percent in 2016, according to the Federal Reserve. In place of cash, shoppers favored the credit card (28 percent) and debit card (29 percent).
'People have literally been changing the way they pay for goods and services,' said Lee Rainie, director of internet and technology research at Pew.
COVID-19 hastened the cashless trend. The pandemic inspired fears, largely misguided, that the virus might spread on currency. Many consumers stopped carrying cash, spurring a national coin shortage.
'I think its very much like the jump in e-commerce we saw during the pandemic,' said Ted Rossman, a senior industry analyst at Bankrate, the financial services company. ?I think we?re going to continue to see a slow evolution away from cash. .
Take note, however, that the George Mason scholar shares the ACLU?s concern over shrinking privacy in financial transactions.
To illustrate the vulnerability of consumer data, in a widely circulated 2019 article, a Washington Post columnist purchased a pair of bananas at a big-box retailer with his credit cards.
'You might think my 29-cent swipe at Target would be just between me and my bank,' he reported. 'Heavens, no. My banana generated data that?s probably worth more than the banana itself. It ended up with marketers, Target, Amazon, Google and hedge funds, to name a few.'
Credit card companies and retailers conspire to sell consumer data to advertisers, who use it to predict ? and even to subtly influence ? the shopper?s next move. In this transaction, the consumer is the product.
To counter the data spies and retain a modicum of free will, consumer advocates say, read the fine print on your card agreement, consider paying in cash, use a robust ad blocker and avoid clicking on anything that looks like a promotion.
'All this data, its not empowering you, its empowering somebody else,' Stanley said.
Soon, even the federal government may be able to harvest consumer data. Late last year, the Fed announced a pilot program for a central bank digital currency.
The digital dollar would offer a federal alternative to cryptocurrency, backed by the government. Citizens could open a bank account directly with the Fed, accessing digital funds on an app or a prepaid card, said David Waugh, managing editor at the American Institute for Economic Research, in a column for The Hill.
'Cash remains our strongest tool to promote financial inclusion while preserving privacy and security, and new digital tools should emulate it? not replace it,' said U.S. Rep. Jes?s ?Chuy? Garc?a, an Illinois Democrat, in support of legislation to develop a digital dollar.
But a digital dollar would also give the government 'direct control' over citizens bank accounts,' Waugh writes. Chinas government has touted its own digital currency as a means to control its citizens. "
.. https://thehill.com/changing-americ...shless-future-is-here-so-is-big-brother/
