Any improvements in a system always come by altering the previous methods or completely changing them. The world can see similar issues in the world as the trend of digitalization is at its peak right now. The adoption of cashless methods has increased all over the world with the introduction of cryptocurrencies, eWallets, credit cards, and online bank transfers.
The rate of adoption is so quick that the current trend shows that about 8.17 million people of society are facing this crisis due to their dependency on the payments using cash. The crisis affects about 5.2 million households, and 80% of elderly homes that are dependent on money.
Cashless Crisis in the U.K.
This digital revolution will have harsh effects in the U.K. as many people will get affected by this new world order. It is estimated that about 320,000 people are living on the streets, 1.3 million adults with no bank accounts, and 1.352 million people suffering from physical or mental health issues. These are the numbers from just one country, imagine the figures we’ll receive on a global basis.
The coins, banknotes, and cheques have been replaced by cryptocurrency wallets, eWallets, and bank cards. This rise in using alternate methods for payment services also led to a decline in ATM usage as the numbers dropped from 54,000 to 49,000 between January 2018 to July 2019.
The digital payment methods have been used to help online shoppers with the help of eWallets and bank transfers being accessible in 2018 and 2019. It is expected that the debit card will replace cash by the end of this year.
Digital India initiative for cashless India by Narendra Modi
The Prime Minister of India, Narendra Modi in 2015, launched the Digital India initiative, which included the facilities of providing internet facilities to rural areas of India and improving the online infrastructure for transactions and making payments.
This initiative is a worldwide wave, but it can be cause problems in areas where the literacy rates are low, and the people are not tech-savvy. Elimination of the traditional cash method will cause problems for people worldwide as it will be a significant change for people.