commodorejohn wrote:It's not so much that it's a slippery slope as that people were holding up systems that require an $x9.99-x99.99 gadget to use as essentially equivalent alternatives, that's all.
In many ways they are. Digital transactions are in practice
cheaper for businesses to handle than cash ones, just like e-books are cheaper to handle than paperbacks - in both cases it's just predatory price-gouging that has the pricing reversed - and eventually it'll flip round so that it's cash
that will attract a 3.75% fee to pay with... Example 1: Up until this year, it was free with WeChat both to transfer cash to a person or business and
free to withdraw your e-balance to your bank account; They only recently increased the fee to 0.1%. Example 2: For public transport in my city in China it costs more to pay for your bus journey with cash than with your contact debit card.
In addition, the cost of smartphones will
eventually drop to the point that noone would be without one. If the Indian $5 smartphone turns out to be fake, one day it'll be real. When a smartphone costs less than a wallet, 'requiring' a gadget of people is not vastly burdensome...
Eventually the advantages of paying for stuff electronically will vastly outweigh the advantages of using cash - and it'll go from 90% of E500 transactions being illicit to 99.99% of transactions being so... The case for abolishing such banknotes will only get stronger, especially as digital cash will eventually become as anonymous and untraceable as cash currently is.