Essay-Merits and Demerits of cashless economy SSC CGL Tier 3 I SSC CHSL Tier 2
A clean and growth-oriented economy sets the future fate of any country whereas a hazy and debt-ridden economy can cause a disaster. A clean economy means an economy that is transparent and free from black money transactions and a cashless economy is one of the pillars on which a clean economy can be built.
There are many successful countries that have transformed their cash-driven economy into a cashless economy. For instance, Singapore made 61 % of its total transactions through cashless mode.
There are several merits of a cashless economy. Firstly, it promotes electronic payment methods that improve transparency and accountability. Secondly, it leads to an increase in tax collection. Thirdly, it mitigates corruption and the flow of black money as all the deals can be traced. Fourthly, it is more convenient as people need not carry cash all the time. And lastly, a cashless economy is environment friendly too, as it saves a huge amount of paper used for the printing of currency. Moreover, less cash means less counterfeiting of money.
But like everything, it has its fair share of demerits too. A cashless economy is convenient for educated…