Israel Could Become
The First Cashless Country
October 14, 2013 [...]
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It's not just a rumor, it's news!
The government of Israel has stablished a committee to analyze ways to eliminate the usage of cash in the economy.
The aim is to restrain the "black economy", to facilitate the payment of taxes.
This way, taxation will be far easier and collecting data will be facilitated by the modern electronic platforms.
Cash inflow and outflow would be much easier to measure - accounting would be facilitated as well.
The downside of a cashless society would not be able to tackle with foreign cash operations, though. People would probably react by purchasing foreign exchange in the form of cash.
Therefore, this measure could dreadfully backfire and weaken the economy.
There have been initiatives and proposals in other parts of the World for limiting the use of cash and even for its elimination.
What else can hide behind this?
More government control of financial assets: prevention of bank-runs (as we're seeing the global economic crisis worsen, the runs on the banks are more and more frequent), wealth taxation could be another issue (let's not forget the the "Cypriot recipe").
Cash is physical. Forcing people to use intangible money will block them from holding their financial assets in their own hands.
Still, the are alternative tangible assets that could help build up safer savings than money.
(The main source of this news can be found here).