Quote:
Originally Posted by SoCal Al
The move in China and India to go cashless is enormous but for 2 very different reasons.
In India they're trying to figure a way to bridge the gap between the lowest level up to the next one. No one lends them money, at least no one legit, because they can't verify income. By going with a cash-card they can establish credit (good) and show income stream (better) to lend against.
In China that adoption of technology & crypto currency is hyper-fast and this plays into many people's view of "efficiency". The government is promoting it for that reason along with cost savings by not having to print/mint actual money. But tI think the real reason (other that giving the Central Committee more control over you) is that it goes a long ways towards eliminating the black market (and confirming people's income = more tax revenue)
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For India, getting rid of 500/1000 rupee notes was trying to get away from corruption. Graft is pervasive throughout the economy and by making 500 / 1000 notes illegal, they wanted to force people who had the money stashed in cash as part of the black economy to either have to declare it or take the loss.
Going cashless makes sense from just streamlining the payments in the business back end. No safe, no counting, no deposits, no need to change bills. The card networks are complicated enough that maybe they have found some ways tosave on interchange fees and other things. The money behind Sweetgreen is Steve Case. Maybe he has an angle.