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| In an electronic world, cash still has currency | |
| (35 minutes later) | |
| Kenneth Rogoff (Why cash isn’t king any more, theguardian.com, 5 September) erroneously suggests that a less-cash society would be “fairer and safer”. His thesis is that cash payments aid and abet the underground economy and that we should gradually curtail them in favour of alternative electronic payment systems. | Kenneth Rogoff (Why cash isn’t king any more, theguardian.com, 5 September) erroneously suggests that a less-cash society would be “fairer and safer”. His thesis is that cash payments aid and abet the underground economy and that we should gradually curtail them in favour of alternative electronic payment systems. |
| More than a dozen countries have imposed restrictions on cash payments but until now, no evaluation of the effectiveness of these measures has ever been undertaken. There does not appear to be any correlation between the size of the shadow economy and the adoption of restrictions. | More than a dozen countries have imposed restrictions on cash payments but until now, no evaluation of the effectiveness of these measures has ever been undertaken. There does not appear to be any correlation between the size of the shadow economy and the adoption of restrictions. |
| As Rogoff himself acknowledges, scaling back paper currency would hardly end criminal activity or tax evasion. The vast majority of cash transactions are perfectly legitimate, while the vast majority of cash users are law-abiding citizens. Making life just that little bit harder for a handful of criminals at the expense of millions of law-abiding citizens would be the ultimate example of taking a sledgehammer to crack a nut. | As Rogoff himself acknowledges, scaling back paper currency would hardly end criminal activity or tax evasion. The vast majority of cash transactions are perfectly legitimate, while the vast majority of cash users are law-abiding citizens. Making life just that little bit harder for a handful of criminals at the expense of millions of law-abiding citizens would be the ultimate example of taking a sledgehammer to crack a nut. |
| Cash is fundamentally about freedom. As the German central banker Carl-Ludwig Thiele observed, abolishing cash would hurt consumer sovereignty. Do we really want the state to collude with large financial institutions to know every single detail about how we spend our money and where? | Cash is fundamentally about freedom. As the German central banker Carl-Ludwig Thiele observed, abolishing cash would hurt consumer sovereignty. Do we really want the state to collude with large financial institutions to know every single detail about how we spend our money and where? |
| Moreover, curtailing cash payments in favour of alternative electronic payment systems would also have far-reaching social consequences. In terms of financial inclusion, restricting cash would disproportionately affect the most vulnerable in society, including young, elderly and infirm people. | Moreover, curtailing cash payments in favour of alternative electronic payment systems would also have far-reaching social consequences. In terms of financial inclusion, restricting cash would disproportionately affect the most vulnerable in society, including young, elderly and infirm people. |
| At a time when cash in circulation is increasing, along with the value of ATM transactions, it seems illogical of Rogoff and others to wish to discriminate against it. | At a time when cash in circulation is increasing, along with the value of ATM transactions, it seems illogical of Rogoff and others to wish to discriminate against it. |
| All of which suggests that cash still has currency, and if not king, it certainly has a prominent seat at the top table of payment methods.Ron Delnevo Executive director Europe, ATM Industry Association | All of which suggests that cash still has currency, and if not king, it certainly has a prominent seat at the top table of payment methods.Ron Delnevo Executive director Europe, ATM Industry Association |
| • My grandchildren are quite familiar with our daily milk deliveries by Tony in his float (Letters, 7 September). But I made some joke about something not being worth a farthing and totally flummoxed my 18-year-old grandson who had never heard the word. He was even more confused at the idea of a coin that was worth one quarter of an old penny, so I abandoned the attempt to explain that it took 960 farthings to make one pound.Judith AbbsLondon | • My grandchildren are quite familiar with our daily milk deliveries by Tony in his float (Letters, 7 September). But I made some joke about something not being worth a farthing and totally flummoxed my 18-year-old grandson who had never heard the word. He was even more confused at the idea of a coin that was worth one quarter of an old penny, so I abandoned the attempt to explain that it took 960 farthings to make one pound.Judith AbbsLondon |
| • Join the debate – email guardian.letters@theguardian.com | • Join the debate – email guardian.letters@theguardian.com |