Should cashless businesses be banned? Some American legislators think so

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The world is moving away from cash at breakneck speed, but it appears some opposition to the idea carrying notes and coins is a waste of time has emerged.

In the US, where the transition towards a no-cash economy has seen companies such as Amazon open check-out-free grocery stores, a New York city councillor has proposed a bill that would “ban” cash-free businesses.

The bill, introduced late last month, has three co-sponsors and would see businesses fined up to $250 for not giving customers access to traditional payment methods.

Other jurisdictions in the US, including Chicago, are also considering their own cash-ban bills, which could spell trouble for retailers that have already taken the leap.

In Australia, no such laws exist, but transitioning towards a cash-free economy is still a hot topic.

Reserve Bank governor Phillip Lowe said late last month Australia was at a “tipping point” where cash will soon become a “niche” payment method.

There are, however, some significant issues at play — namely, even though consumers are using cash much less, there are still issues with the reliability of Australia’s digital payments ecosystem.

There are also issues with the costs of electronic payments, and the burden those costs create for business owners, which are yet to be ironed out.

Lowe said the Payments System Board might need to “consider setting some standards” if businesses in the payments space don’t pull up their socks.

There is no mention of a cashless ban in Canberra though, yet.

NOW READ: “A lot more customers”: Why hundreds of businesses are ditching surcharges

NOW READ: Cash is dead, long live cash: The problems with Australia’s digital ecosystem

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