The coronavirus pandemic has reawakened debate about the continued viability of what has been the physical lifeblood of global economies: paper money and coins.
(AP) — In troubled times, people have been known to hoard currency at home — a financial security blanket against deep uncertainty. But in this crisis, things are different. This time cash itself, passed from hand to hand across neighborhoods, cities and societies just like the coronavirus, is a source of suspicion rather than reassurance. No longer a thing to be shoved mindlessly into a pocket, tucked into a worn wallet or thrown casually on a kitchen counter, money’s status has changed during the virus era — perhaps irrevocably. The pandemic has also reawakened debate about the continued viability of what has been the physical lifeblood of global economies: paper money and coins.
From the supermarkets of the United States and Japan to the shantytowns of Africa to the gas stations of Tehran, a growing number of businesses and individuals worldwide have stopped using banknotes in fear that physical currency, handled by tens of thousands of people over their useful life, could be a vector for the spreading coronavirus.
Businesses from refusing to accept currency, and some countries from urging citizens to stop using banknotes altogether. In the midst of the coronavirus era, a thousand calculations are made before cash is handled — mostly with gloved hands. Some leave the money laid out on surfaces for days, for the virus to die. Others disinfect banknotes with spray. Some even microwave them in the belief it kills the virus. In China, banks are now required to sterilize cash with ultraviolet light or heat, then store notes for at least a week before they are given to customers. “In many areas, cash was already beginning to disappear due the increased risk of robbery, the ease of internet ordering, and the ubiquity of cell phones,” says Zachary Cohle, an assistant professor at the department of economics at Quinnipiac University in Connecticut.
Sweden, Finland, Norway, Canada and others have slowly phased out cash to the point where using it in large amounts seems suspicious. The United Kingdom and Australia are among countries expected to become cashless societies. And in China, use of cash by consumers has plunged as smartphone-based payment services rose in popularity over the past decade.
“I always pay with cash — as a matter of principle!” Ingel Strobl, a 76-year-old pensioner, says while shopping at a bakery in central Vienna. “I know they want to abolish cash. But I don’t want that we lose our right to our own money. You know what I mean anyway! I stick to cash — corona or not.”’
Since the virus outbreak, however, shops that have remained open, like grocery stores, have posted signs encouraging people to pay with cards. Many are: According to Germany’s central bank, the Bundesbank, 43% of people have changed their payment behavior in the past few weeks; now, a large percentage are likely to make contactless payments with a card.
Dorothy Harpool, director of student and community initiatives and lecturer at Wichita State University’s W. Frank Barton School of Business, predicted the pandemic would lead some consumers to rethink their use of cash. Nick Note: Cash is a problem and the problem is growing. My high hopes for bitcoin have fizzled. Gold and silver are useless and draws bigger scrutiny then a bag of cash and cocaine in the trunk of a stopped car. And its impossible to spend! Their is a solution as i learned in the collapse of the banking system in Greece and Cyprus. A international Debit card was the only money. The solution is a debit card tied to the INTERNATIONAL MasterCard/Visa network. Its accepted anywhere in the world in most every currency. You can spend what ever you want and no one bats a eye. Panhandlers on the street accept master card or visa. Get this I know a guy who bough a Ferrari on his MasterCard. Now if your very cleaver you can also set up a offshore entity nice and legal like to domicile your MasterCard. No NOT the Cayman Islands. That place has a certain smell to it. How about the worlds oldest banking center. Like London England. And how about setting up a entity that dates back to the Crusades and the Tempers. I am talking about a offshore English Commonwealth Jersey Trust. That has trillions of dollars of established Trusts respected the world over. A jersey Trust administrated out of England with access to your funds through a MasterCard is a dream come true. All Anti money laundering, Know your client, Patriot Act and IRS compliant. More on this later.