Reflections on Cash

Cash Essentials reported on an article by Tristan Dissaux, AXA Fellow at the Université Libre de Bruxelles, 'The Social Role of Money in an Age of Digitalisation'. The article pulls together much of debate and thinking around the payment tension created by digitisation and, as we end 2022, it is a good time to reflect on this.

What is the problem?

Digitalisation is justified largely on economic grounds. It enables, and usually delivers, efficiency gains, convenience and increased security. In payments it can extend the possibilities of transactions to more people. Importantly it creates payment histories which are important for people who want to borrow money.

The data collected on payments increases transparency which can be used to deliver both payment security and allow the authorities, whether tax authorities, the police or the secret service, to focus on crime and societal security risk. The data can also be used to create innovative new products and services and new business models.