getting rid of paper currency can save a lot of money and also help the economy …

if you list down the costs of maintaining a paper currency , here are the costs

  • the printing cost
  • transport cost
  • safeguarding cost
  • atm machines
  • rent for atms machine buildings
  • other costs like keeping the atm machines stocked with money , air conditioning for these buildings , communication equipment for the atm machines , closed circuit tv , security guard for the atm machines

all these can be eliminated with digital banking.. direct money transfer , if you want to pay someone

the money saved with this can be used to give customers a higher interest rate on their money . once more customers come in , the bank will have more money to lend out ( a multiplier of 5 to 10 is generally used , since banks use the fractional reserve banking system ) .. it will increase the profits of the bank and also have more money in the economy .. it is a win win for all

a lot of digital banks have come up , some of them are monzo , revolut , n26 .. they allow you to bank from anywhere and transfer money instantly ..

they use apple pay or google pay for digital money transfers

you can use any of the existing bank atm machines to withdraw cash , if needed

for the governments , this can be an additional source of revenue .. for every digital transaction / transfer , the government could charge a very small percentage as tax … the volume of these transactions is so much that it can add a significant amount of revenue to the government’s coffers

Leave a Reply