Apparently, that’s one reason why the negative interest policy has been successful in Sweden, which is reported to already be practically cashless. If people aren’t used to cash anymore, they may be willing to pay to avoid using it. Of course, cash has the advantage of usually being untraceable, and people may come to value that aspect of it.
The planners aren’t going to boil that cash frog all at once, though. They’ll do it slowly, carefully:
No politician is likely to prohibit cash entirely, at least not until it has already all but disappeared from day to day life. Concerns about surveillance and the power of the state are likely to grow, as electronic money is completely traceable.
“Cash is useful for small transactions, and until it disappears naturally, I would be loathe to say let’s outlaw it,” says Sir Charles.
“Sir Charles” is Sir Charles Bean, former deputy governor at the Bank of England. One of the first steps will be to outlaw large-denomination notes, which are often used in drug transactions.
If you think of it, cash is a form of liberty, isn’t it?
Read the rest here...