BANKERS ADVOCATE’ CASHLESS SOCIETY’
ECONOMIC uncertainty around the globe has raised concerns that consumers could take cash out of banks-especially in negative interest rate environment-and board it.
Eliminating cash therefore is one way to reduce that risk, according to the Bankers Association of Zambia (BAZ) Public Relations Officer, Miriam Zimba.
Ms Zimba indicated that countries such as Denmark, Sweden and Norway were already considering this, while the European Union Central Bank was considering getting rid of large-denomination bills.
She observed that efforts towards the realisation of a digital economy lied in the continuous research and development of innovative solutions for digital financial services (DFS).
“The shift towards the uptake of DFS is one such avenue that will bring the Zambian economy a step closer towards becoming a ‘Cashless Society’, which brings to fruition the realisation of a digital economy,” Ms Zimba said in her write up on the Digital Banking as an Alternative to Cash Transactions.
She however said the rise of cyber-crime amid growing concerns about the ability of public agencies to look through digital records would add to the unwillingness among many to let go of paper money.
According to Ms Zimba, the migration to cashless society (in order for it to become either uniform or universal) varied, as most countries were at different levels.
“Presently, there is no country around the globe that is truly as cashless society. But countries around the world are embracing cashless payments systems.
“It is hard to predict and exact period as to when this transition could happen, but some experts speculate that it could be much earlier than anticipated,” Ms Zimba said.
By BUUMBA CHIMBULU