I love cash! I love the convenience of digital efficiency. But I love freedom more! I seek out the meanings of each of these forms of moving money and invite you to join me but you choose for yourself.
Cash: The king of privacy, reigns supreme in the realm of financial anonymity. Transactions are exchanged freely, allowing individuals to control their financial information without external oversight. It’s universally accepted, requiring no technology or internet access, making it a reliable option even in remote areas. Cash also provides tangible value, fostering a sense of security and control over one’s finances. You can physically hold it, count it, and feel its weight, offering a tangible representation of your wealth. It’s resilient to hacking and system failures, making it a safe haven in times of technological uncertainty. Cash also offers a level of independence from centralized systems, making it a valuable tool for those seeking to avoid fees, interest rates, and expensive surcharges of financial institutions. I can use it at the markets or at food stalls on the side of the street and as far as I am aware, I cannot spread deadly germs by using cash.
Digital Currency: The speed demon of finance, digital currency revolutionizes transactions, facilitating fast, cheap, and borderless transfers. It breaks down barriers to international trade and remittances, allowing individuals to send and receive money across borders with ease. Digital currencies also promote financial inclusion, enabling individuals without access to traditional banking systems to participate in the global economy. I can send money overseas to relatives who need it and vice versa! While I am tempted to make online clothing purchases, I resist so I can support NZ-made or buy designers from the local op-shop … but that’s just me.
Central Bank Digital Currency (CBDC): The efficiency champion, CBDC promises to streamline payments, reducing transaction costs and processing times. It offers potential for increased efficiency and security, with the backing of one central global bank. CBDC could also enhance financial inclusion. It creates a more transparent and accountable financial system because all transactions have the same endpoint. China has this same system. It has served well to ensure the same for everyone. The system is programmable too which allows the central global bank to control how people spend their money and when. This means as long as people are ‘towing the line’ of sustainability, ‘good’ speech, kindness and obedience, you get to be rewarded with using your money. No thanks … but that’s me!
Which Provides the Most Freedom?
While CBDC promises efficiency and financial inclusion, and digital currency offers speed and accessibility, cash reigns supreme in the realm of financial freedom. Its anonymity and lack of control by institutions allow individuals to manage their finances without external surveillance or restrictions. Cash empowers individuals to make financial decisions without fear of scrutiny or manipulation. It fosters a sense of autonomy and control over one’s financial destiny. While digital currencies and CBDC might offer convenience and efficiency, they come at the cost of privacy and potentially increased government control. In a world increasingly dominated by data and surveillance, cash remains a vital symbol of individual freedom and financial sovereignty.
