In the first part of this story, we dived into the early stage of money to what is new, now we are about to go through the recent advancement of money which is the cashless system, together with emerging decentralised solutions.
Since 2020, after the pandemic, there was a Global economic restructuring and digital payment became widely used. Quite a number of fintech companies were established as at that time in order to meet this demand, also, startups increased in various countries launching remarkable and user-centric products that cut across health, education, other sectors, and with certainty, these solutions were accepted by the public as well as the Government. Without any doubt, humans could easily download their preferred financial mobile app or sign up for what they think is best. This approach got better, making it almost impossible for any individual to go around with cash. Investment and saving also became more secure with better profits.
With all of these innovations happening, the advanced cashless system was known to many. In my opinion, it is an advanced cashless system because it can not be cashed out, it is digital and can only be digitally operated. Equally, products in this category are decentralised, built on the blockchain and can only be accessed through the internet.
Comparatively, decentralization is often referred to as a peer-to-peer network without a central authority where all payments are connected. This allows individuals to process transactions directly, across borders without bank rules or policies. Also, users’ activity is not controlled by one central server, instead, operations are multiple-chained and very direct.
For this to be appropriately done since it involves money and all of its purposes, coins were minted but can only be used virtually. These coins otherwise known as digital currency were the only acceptable currency on blockchain technology, they can’t be felt or seen but can be spent. Bitcoin was invented, the first digital coin to ever be minted but as time went on, there were other types; Ethereum, stable coins, and ardor, amongst many others.
Impacts of Advanced Cashless Economy
- To clearly detect fraudulent activities through decentralised system
- For individuals to track and monitor their daily transactions and expenses
- To optimize and improve the financial economy data
- For easier record and book-keeping of other sector’s cash inflow and outflow, that is; health, agriculture, education, etc
- Encourage people to save and invest easily and wisely
- Improve payment system Globally