Australia’s New Draft Bill: A Step Towards Digital
The Liberal Party of Australia is throwing down the gauntlet! Their proposed draft bill seeks to outlaw cash transactions exceeding AUD 10,000 (about USD 6,750). Why? Well, the government believes this shocking move will cut down on tax evasion and spur the shift towards a cashless society. No more stuffing cash under the mattress, folks!
According to the proposed legislation, any transactions at or above this amount must now dance through the electronic payment channels or flow through checks—no more hiding your cash in the proverbial potato sack! Plus, these payments will have to be reported by entities bound by Anti-Money Laundering (AML) laws. And surprise! Cryptocurrencies are also on the list of transactions that need reporting. It seems the crypto world isn’t getting off that easy either.
Global Trends Towards Cashless Societies
Australia isn’t alone in its bid to wave goodbye to physical cash. Let’s check out three countries rapidly approaching cashless nirvana.
Sweden: The Leading Players on the Cashless Stage
Sweden is racing ahead with a mere 2% of transactions involving cash! The government and the public have jumped on the cashless bandwagon—less than 20% of retail outlets even accept cash. By 2023, the experts predict Sweden could go entirely cashless. Talk about a serious commitment!
As public transport refuses to accept cash and small businesses hop on board the digital payment train, Sweden’s central bank, Riksbank, is gearing up to test a digital currency called e-krona. According to Gabriel Söderberg, an economist at Sveriges Riksbank, while he’s not keen on current cryptocurrencies as a means of payment, he sees the future being bright for government-backed digital currencies.
Germany: Cautious Steps Toward Limitation
Germany, on the other hand, has had a long-standing love affair with cash. But change is in the air! Proposed caps on cash transactions of €5,000 (about USD 5,600) are stirring the pot. While the public has been less than enthusiastic, this is a clear signal that the old cash traditions might alter over the years.
As of February 2018, Germany recognized Bitcoin as a legitimate currency, allowing crypto to fit into this changing landscape just like swiss cheese in a good fondue. But let’s face it, discussions around cryptocurrencies still show there’s a fair bit of confusion between nations.
Canada: Playing the Balancing Act
Stepping into the frosty world of Canada, there’s a commitment to a balanced approach. The Bank of Canada estimates that cash transactions could plummet to just 10% of total spending by 2030. But the swift transition to a cashless society doesn’t come without its concerns—elderly folk wanting to cling to their cold, hard cash, for example!
The Bank of Canada is looking into potentially issuing a Central Bank Digital Currency (CBDC) to maintain control while still keeping an eye on innovation. Meanwhile, innovations in technology are being tested—they were already working on blockchain experiments way back in 2017!
The Future: Cash or Cashless?
The idea of leaving your physical wallet at home sounds like sci-fi, but it’s closer to reality than we think. For many, using cards or mobile devices for daily transactions has become second nature. But what about the role of cryptocurrencies and blockchain technology as we sprint towards a cashless future?
The battle isn’t just over convenience; cash’s ultimate demise could depend on technological advancements proving they can deliver speed and security. So, buckle up: the age of the cashless transaction is just around the corner!
