Oh cash, you are dying quickly. The machine wants you dead, and when the machine wants you dead, sooner or later you’re gonna be dead.
(From Wolf Street)
While it is true that recent technological advances and changes in generational priorities mean that cash’s days are probably numbered anyway, there is a whole world of difference between a natural death and euthanasia. It is increasingly clear that a loose, albeit extremely powerful alliance of governments, central banks, big banks, credit card companies, and large corporations wants to pull the plug on cash, for their own distinct motives.
Central banks want to make NIRP an eternal reality and the only way of doing that is to stop depositors from cashing out. For credit card companies, cash is the ultimate rival. As such, it’s no surprise that the likes of Visa and MasterCard are among those pushing the hardest for a cashless economy. As for banks, the obvious attraction is the virtual elimination of the threat of bank runs. As Ellen Brown warns, the ultimate premise of Dodd-Frank was that there would be “no more taxpayer bailouts”:
Instead, insolvent systemically-risky banks were supposed to “bail in” (confiscate) the money of their creditors, including their depositors (the largest class of creditor of any bank). That could explain the push to go cashless. By quietly eliminating the possibility of cash withdrawals, the central bank can make sure the deposits are there to be grabbed when disaster strikes.