Is money at risk of extinction?

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Is cash in danger of extinction?

The use of technological instruments is increasing, we may be on the way to global monetary digitization.

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October
27, 2020

4 min read

This article has been translated from our Spanish edition using AI technologies. Errors can occur due to this process.

The opinions expressed by the entrepreneur's contributors are their own.

  • In order to achieve better adaptation to technology and especially at the transactional level, incentives must be provided that encourage and encourage the use of this new modality. This is a task for everyone involved, for authorities as well as for companies and society.

Social evolution is in a curve and a phase of adjustment. We have made great strides in the past few months. The use of technological instruments is increasing, we may be on the way to global monetary digitization.

Going back a few decades, explaining or understanding e-commerce in order to transfer any amount without going to a bank branch and even paying with QR codes on your cell phone has been unthinkable.

We have seen the great effort that the Banco de México has made in implementing CoDi. However, the dissemination strategy has not produced the expected results. It should be mentioned that in use, this technology has been implemented in China for several years. With great success the reality is that we are way behind in this area.

Reducing cash use could be socially beneficial. We need to consider several variables that would create an employment complication. Both private and public institutions would need to find a way to adapt without affecting the work of everyone involved in the creation, transportation, security and operation that involve handling physical money.

Technology has permeated every moment of our lives; The synergy that is gradually emerging with society is of great relevance. Dare you say that the physical extinction of cash would be to some extent irresponsible. There are several factors to consider; such as the access to various platforms that accelerate this transition, the high levels of informal trading and even reluctance to fail to meet tax obligations; that is, paying taxes.

One of the obstacles we have in Mexico is the technological accessibility and coverage of the Internet network. Not to mention the phone tariffs and even the high cost of a mobile data service. In our geography we still find many points that lack a good signal. The telecommunications infrastructure offers great opportunities and opportunities to talk about the supply and demand of telephone services.

In terms of the security issue, we found very interesting advantages, and we speculated a little that "common" crimes would be minimized, so to speak. However, all institutions would have to robustly strengthen their cybernetic devices to ensure clean and tidy transactions. with no margin for fraud or controversy.

Image: rupixen.com via Unsplash

Some of the arguments of various sectors or industries for which they do not fully accept banking digitization are the control of resources. Measures have been taken in the past few months to increase collection. Many businesses, entrepreneurs and families feel unprotected to some extent and envision tax prosecution.

In order to achieve better adaptation to technology and, above all, to the transaction levels, incentives must be provided that encourage and encourage the use of this new modality. This is a task for everyone involved, both public authorities and companies and society.

As entrepreneurs, we are at a crucial moment to achieve technological change from our platform and our service. In a way, we need to guide the user and show him the facilities we have today without him feeling or suffering from any sense of vulnerability.

Cash will not go away in the short or medium term, the path will be followed gradually, but we have to take socio-economic strata into account and find the perfect combination so as not to exclude any part of the population.

Given the current situation, there is a latent need in the entrepreneurial universe to reinvent itself and simplify operations.