Cash is a problem for banks and governments. And, as we know, banks and governments are joined at the hip – each creating policies that strengthen the power of the other. It is no mystery, then, why we continue to see an acceleration in the “War on Cash.” Cash creates a barrier to tracking and control and removes the ability to charge a wide range of processing fees and hidden charges. Cash impedes easy tax collection for governments, and creates the perception that governments are allowing crimes and corruption to occur without the ability to swiftly crack down on “evildoers.” Clearly, such an instrument would become the enemy to these institutions.
But we now live in a globalized, connected world where people are embracing the digital economy in all of its forms. Studies show that debit and credit card use is surpassing cash in places like the UK. We have also embraced the full range of digital devices that make us more mobile and provide more options for communication and banking. As it stands, this has only elevated the exposure the average individual has to all manner of tracking, taxation, and the fees imposed by the banking structure. Bitcoin and other cryptocurrencies are aiming to fill the need for modern methods of money storage and transference while simultaneously decentralizing the means for doing so, thereby reducing the power for a host of middlemen to grab pieces of our earnings along the way. Thousands of people all over the world now carefully watch the Bitcoin price every day, buying and selling as they see fit, just as others do with stocks and bonds. That is certainly a valid approach to the crypto space, but the blockchain itself — which underpins all cryptocurrencies — is also enabling the development of new tools that can promote economic freedom to more people in more places than ever before.
This is precisely why we have been strong promoters of cryptocurrency. While, yes, it does technically contribute to going cashless, it still thwarts the centralized control mechanisms of the dominant players in traditional banking which have proved to be usurious at every level. Moreover, cryptocurrencies provide the necessary distributed network of currency options, as well as payment methods that can offer more choice to more people.
For example, CoinText is an application that allows anyone to instantly send various types of cryptocurrency via text message, even with a non-smartphone and no Internet connection. This turns cryptocurrency into a text-based, as-good-as-cash system of payment transfer. No bank account is needed and no crypto wallet is necessary. Similar applications, as well as those we haven’t thought of yet are propagating across the crypto space, each with a mission to decentralize and lessen the cost of money transfer.
When US Treasury Secretary Steve Mnuchin addressed the Economic Club of Washington earlier this year, he compared cryptocurrency to “Swiss numbered bank accounts.” Weeks later, thousands of miles away in India, the nation’s Finance Minister said his government would “take all measures to eliminate use of these crypto-assets in financing illegitimate activities or as part of the payment system.” These are just two examples, but they speak volumes. Governments across the globe are greeting the rise of cryptocurrency with suspicion and cynicism at best and often with downright hostility. This is precisely the reaction that governments have with fiat cash. Why is that?
Lest we pretend that governments have our best interests at heart by trying to get everyone into their version of a cashless world, their policies so far have caused chaos and cost lives in poorer countries such as India with its disastrous demonetization strategy. But make no mistake, this is a global agenda.
The Better Than Cash Alliance is the United Nations framework from which the plans to “de-cash” the globe originate. The alliance forms a system of interlocking governments, companies, and international organizations that have partnered in the cashless agenda.
Perhaps not mysteriously, the two largest global payment processors are also at the forefront of working with the goals set out by this Better Than Cash Alliance.