A Cashless Society

Going cashless shouldn’t bother anyone, but it will probably bother most people quite a bit. Most people seem to value those little green rectangles of paper, but paper notes have no real value. They are a liability since they can be easily stolen and the cost of maintaining and policing the physical currency is astronomical (both points are made in the SGU episode segment) Digital currency has all the benefits of physical currency, without the need to carry it around. It is a win-win.

I used to be a hardcore numismatist. I was all in on silver and gold currency, coin collecting, etcetera. Then I tried bartering for goods with silver as a test to see how well it would be received by businesses. Most businesses were not interested. They wanted to deposit their earnings in the bank at night and the bank only accepted federal money, “the coin of the realm.” The test was a failure, as was the silver currency that I was using as my test at the time.

To individuals, the physicality of the money is what makes it valuable. To volume businesses, the physicality is a liability. This is why credit cards took off and why businesses gladly gave four percent to the card issuers in exchange for not having to deal with cash. It makes their jobs easier and safer and the analog or digital nature of the money being traded on the card system makes no difference as long as it can’t easily be stolen or have to be stored.

The value is in the goods exchanged, the location maintained, not in the money that made the transaction possible. Money has no value because you can’t eat it, it won’t keep you safe, it doesn’t make you live longer. The things that do can be traded for money, so long as the person who has those things has them to trade.

The future’s cashless society will look almost exactly like the one we live in now. The government will have to maintain accounts for each and every one of us in order to make it work; otherwise the poor will be shut out of participation in the economy to the detriment of us all and to the eventual destruction of our societies. In the US they may even make us all banks so that the fed can just issue us money directly. You’ll be able to go to the Post Office (most likely) to conduct your federal banking business. The better off will move their funds to private banks, but the poor will have to rely on government issued cards to buy their necessities. Life will go on pretty much as before.

Black markets will still exist. They’ll go to the barter system and commodities like gold and silver. They’ll create bot nets of dummy accounts that will mask the crypto-currency transactions. The buyer will need to show up with the commodity the seller wants in exchange. Currency is irrelevant.

Bob talks about the briefcase full of cash and that magical moment of imagination towards the end of the segment as a reason for preserving the greenbacks. Remember the scene in Pulp Fiction? You never see what is in the briefcase. You only see the golden reflection on Pumpkin/Ringo’s face, but that’s enough to make you understand the immense value of what is in that case. The money in his wallet is irrelevant. The money in your wallet is irrelevant. The money in my wallet is irrelevant. The commodities. They have value.

Standoff Scene from Pulp Fiction (Prime Video)

Based on an email sent to The Skeptic’s Guide to the Universe in reference to the segment in episode 844.


I have apparently been nominated to be the Jesus of monetary policy. Not quite sure how to take that. Run and hide before the Pharisees send the Romans to crucify me, or stand and accept my fate? I’m thinking I should decline the nomination now that I’ve spelled the conditions out for myself.

This article was test-posted to Reddit in two places; here and here. In both places the upvotes did not equal the downvotes which proves my original assertion. Most people are afraid of the idea of going cashless. The commentary on the two different thread also proved out my suspicions that a good number of people don’t even understand what going cashless would entail.