Cashless economy refers to that economic condition in which the financial transactions are conducted on various digital platforms between the two transacting parties. With the arrival of electronic banks in1990, the cashless economy came into existence. Cashless economy helps to pump up the inflation and render the hoarding of the illegal cash. It enables to increase the expenditure of the consumer and also in get a curb over the black money circulation.
Cashless economy in different countries
With the arrival of the internet digitization has brought a revolutionary change in the lifestyle of 21st century people. But what has been affected the most is the economy system. With the arrival of the electronic banks people started using online payment methods. And now nearly after two decades, many of the western and Nordic countries like US, France, Switzerland, Denmark are on the verge of adopting an entire cashless economy system. But again when it comes to the underdeveloped countries the scenario related to the cashless economy is a little bit different. But even if all the underdeveloped nations have not been completely accepting the cashless economy system so far there is still a difference among theses underdeveloped nation on the basis of the extent to which they have adopted the cashless economy system.
Scenario of cashless economy in the underdeveloped countries
Today there are so many nations that come under the category of the under developed countries majority of them belonging to the South Africa continent. Among these some are less underdeveloped while some are more underdeveloped and but these entire lie under the same category. There are so many reasons why these countries are still underdeveloped. But the main reason is that they have been a subject to corruption, terrorism, economic instability, low growth rate etc. as a result they have not been able to improve much even in the given time. Now since there economy still is not stable up to a mark, the scope for cashless economy to evolve is seems superficial.
Are the underdeveloped nations ready for cashless economy?
The fact that cashless economy is ruling the developed nations is because of their advancement in technology and the companies that are investing in it. Example is Uber which has not only brought advancement in the travel sector but is also known as one of the pioneers of the cashless economy. Then several companies like PayPal, Paytm and many other national and international companies have brought the digital wallet system through payments are done. But in the present scenario none of these companies are ready to invest in underdeveloped countries due to their poor financial background and political unstably. Once these countries are able to overcome these barriers they automatically become eligible to inculcate the cashless economy in their countries.
So as far as the cashless economy is concerned, it is a very good concept which is spreading all over the world. It not helps in fighting corruption but also helps to enhance the development of a nation. But as far as the underdeveloped countries are considered they still need to work on a balanced economic infrastructure, education and other basic factors. Once they start making changes in these they will surely be ready to accept the cashless economy and use it in their daily life.