Will a Future Without Cash End the Black Economy?

Many are sceptical around the use of bitcoin and whether cryptocurrencies are generally used for less than savoury purposes such as money laundering, drug trafficking and other related crime activities. It was very interesting to read MYOB’s praise of the Black Economy Taskforce in the AustralianFinTech, a taskforce dedicated to combat the black economy.

The CEO of MYOB, Tim Reed openly complimented the Government’s Taskforce for the recommendations handed down in order to the tackle the black economy, where they recommended that cash payments no longer can exceed $10,000. Quite simply, Reed believes we need to stop the victimless attitude of, it’s ok to use cash in the black economy, as ‘everyone does it’. Reed’s suggestion that a digital economy in place of a paper/cash economy is a good one as it will allow traceability, efficiency and accountability. Indeed.

It makes sense.

At its core, all governments would like to stamp out transactions that are illegal or they are unsure of the origins of how the monies were acquired. That’s clear. The only real way of doing that is to have a currency where all transactions can be traced, and the answer to this a digital currency. Moreover, efficiencies come with this mode of currency. This sounds familiar. Right?

It sounds very similar to what a cryptocurrency could deliver, which is perhaps why the Swiss government have commissioned a report in to investigating the viability of having the ‘e-franc’ as their national digital currency.

It will be interesting to see the findings of that report. I am sure that many governments are sitting back to see how it plays out.

Watch this space.

This Industry Insight has been inspired by “MYOB predicts a future without cash to end Black Economy” from AustralianFinTech publication. Read the rest of the article here.