Copenhagen — Getting rid of much of the cash in circulation might be an effective way to reduce inequality. The world’s poor stand to be among the "biggest beneficiaries" of the changes that would follow should cash become almost obsolete, according to Kenneth Rogoff, a Harvard economy professor and the author of The Curse of Cash. Benefits include less crime and a reduction in the kind of off-the-book labour that hurts society’s weakest members. But weaning societies off cash requires the right infrastructure, and here there is inspiration to be found in Scandinavia, a region that Rogoff says is at "the cutting edge" of the cashless experiment. The Nordic nations all rank among the least corrupt and most transparent in the world. Cash accounts for less than 5% of the money in circulation, making them the least cash-reliant group of countries on the planet. "If you do financial inclusion the way you’ve done it in Denmark, for example, where you give everyone free debit cards, it wou...
Would you like to comment on this article?
Sign up (it's quick and free) or sign in now.
Please read our Comment Policy before commenting.
Subscribe now to unlock this article.
Support BusinessLIVE’s award-winning journalism for R129 per month (digital access only).
There’s never been a more important time to support independent journalism in SA. Our subscription packages now offer an ad-free experience for readers.
Cancel anytime.
Questions? Email helpdesk@businesslive.co.za or call 0860 52 52 00. Got a subscription voucher? Redeem it now.