IRVINE, Calif., Sept. 29, 2016 /PRNewswire/ -- Governments and banks are discouraging the use of cash, but a problem with a cashless society is a loss of privacy, explains Dr. Scott Sumner, Professor Emeritus of Economics at Bentley University. He points out that Sweden already is moving toward eliminating all coins and paper money, and Italy and Canada are beginning to discourage the use of cash.
Dr. Sumner predicts the elimination of cash would make it easier for governments to impose negative interest rates and could lead to increases in values for gold and alternative currency, such as the Bitcoin.
A fantastic heist (we like our crimes as smart and magical as dreams) took place some years back, when a stolen helicopter landed on the roof of a cash depot in Stockholm and three masked men smashed a skylight to climb inside. It was September 23, 2009. The depot was freshly stocked in expectation of a coming Swedish payday. Armed with a Kalashnikov, the invaders held employees at bay while their accomplices outside positioned road spikes to keep cop cars from swarming the building. Fake bombs had been set among the police helicopters to delay an aerial chase. The thieves loaded bag after bag of bills into their aircraft, then departed. Seven men were later caught and sentenced, but nearly all of the stolen cash—reportedly some $6.5 million—still has not been found.
The use of mobile-based prepaid instruments or e-money products could be one of the ways for India to transition towards a cashless economy.
The past couple of years have seen a number of initiatives to facilitate cashless transactions in the Indian economy, including the launch of the Unified Payment Interface (UPI) earlier this year. Such moves may raise the volume of cashless transactions in India in the years to come but the latest available internationally comparable data shows why moving towards a cashless economy remains a Herculean challenge for the country.
Data pertaining to payment, clearing and settlement systems in 23 major economies, recently released by the Bank for International Settlements (BIS) shows that India lags far behind both emerging market and developed peers in the move towards a cashless economy. Non-cash payments transactions in India amounted to only 11 per inhabitant in 2015, much lower than other BRIC economies, with China reporting 17 such transactions per inhabitant in 2014 (data for China is unavailable for 2015).
Technavio analysts forecast the global automated teller machine (ATM) slide rails market to grow at a CAGR of 16% during the forecast period, according to their latest report.
The research study covers the present scenario and growth prospects of the global ATM slide rails market for 2016-2020. To calculate the market size, the unit shipments of the slide rails that are installed on a yearly basis in the ATMs have been considered.
Banks are looking for measures to reduce the cost of operations and with the introduction of the image enabled ATMs and self-service cash recycling machines, the banks can recycle and maintain cash automatically. As new cash dispensing machines are available, they not only reduce the overall manpower required by a bank but also help improve the efficiency of banks. With the introduction of such new machines, there has been revised demand for ATMs for a new market as well as for replacement market. Since ATMs are the de-facto end application for ATM slide rails, the demand for the ATM sites directly affects the demand for ATM slide rails.
The future of banking, especially tellers inside bank lobbies, is changing. So is the future of cash, this being coins and bank notes. The big question for those interested in numismatics is if the days are numbered for physical currency.
Not so, according to a British testing service. The Smithers Pira service released a study in August that indicates the number of bank notes will increase by about five percent annually between 2016 and 2026. The study did not address coinage directly, but considering the recent move towards eliminating low denomination bank notes and replacing them with coins, the Smithers Pira study could be termed a “coincidence barometer” for the future of coins as well.
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