The transition to a cashless society in Australia has been a topic of heated debate in recent years.

While the convenience of digital payments is undeniable, Sunrise host Natalie Barr has raised significant concern about the potential risks of becoming overly reliant on digital currency.

This comes in the wake of a warning from the Reserve Bank Governor that Australians might have to pay a fee to access physical cash in the future.

Barr's concerns stem from the potential for system failures that could bring the country to a standstill if there was no physical cash in circulation.

She cited the Optus outage in November, which left millions of Australians without phone and internet connectivity.

This resulted in many small businesses being unable to accept payments as they relied on EFTPOS linked to the telco.

Natalie Barr shares her thoughts on Australia’s move towards becoming a cashless society. Image source: jcomp on Freepik.

While such outages are not uncommon, with Telstra experiencing a similar issue in May and Westpac Bank going offline just last week, they cause issues in the everyday lives of their customers.

These incidents also highlight the vulnerabilities of a digital-only economy. If there is no circulating cash, a simple network disruption could have far-reaching consequences.

The Westpac outage, in particular, caused panic among customers who were unable to see their money when they logged into their accounts.

Many mistakenly thought there had been a hack, illustrating the potential for confusion and fear in a cashless society.

Despite the push towards a cashless society, there are those who believe that there will always be a place for hard currency in the economy.

Minister for Government Services Bill Shorten has stated that physical cash is still essential and hoped that we will not see a world where 'you've got to pay cash to use cash'.

The Cost of Cash

While the convenience of digital payments is undeniable, the cost of maintaining physical cash is growing.

Banks are looking to recoup some of these costs, which could result in customers having to pay a fee to access their own cash.

Some customers and businesses already have to pay a surcharge whenever a 'tap-and-go' payment is done—essentially paying for the infrastructure and systems that facilitate digital payments.

This is a concept that Barr finds difficult to grasp, stating that the idea of paying for the 'privilege' to use your own notes and coins handled by your banks is hard to accept.

'I don't think this will go down well with Aussies—if we have to pay to use our own cash. Let's hope it doesn't get that,' she said.

Reserve Bank of Australia (RBA) Governor Michele Bullock recently highlighted that the share of consumer payments made using cash dropped from 70 per cent in 2007 to only 13 per cent last year.

This trend has put pressure on the running costs of ATMs and the physical distribution of notes and coins.

She warned that the cost of distributing cash could lead to customers being charged for using banknotes, similar to how they are now charged for credit card transactions.

'The issue with cash has always been that businesses don't really understand the costs of cash in their business,' she said in an interview.

'They are, at the moment, understanding it a bit more, but in the past, they haven't internalised the cost of processing.'

She argued that businesses need to understand the costs associated with handling cash, including the need for registers and safes, security measures, and the time and effort required to physically deposit cash at a bank.

She also believed that customers need to pay to use cash and the fees for cash distribution.

'Having said that, it's also true that as economists, you want people to face the prices of using particular services that reflect the cost of those services,' she added.

'It's very difficult to actually enforce payment of cash, but what's going to happen, and what [is happening] at the moment, is [that] the costs end up embedded in the costs of the financial institutions that are providing the services.'

Furthermore, the number of ATMs and bank branches where people can access cash has been steadily declining. While Bullock stated that the distances people need to travel to access cash have changed only a little in recent years, she acknowledged that this may not be the case in the future if access points continue to decline.

The RBA is reportedly keen on maintaining a 'broad coverage of ATMs at reasonable prices, particularly in regional and remote areas' and is open to suggestions from the industry on how the central bank’s regulation could help.

As the sustainability of the current distribution system is in doubt, Australia may need to consider alternative models, such as a wholesale distribution arrangement, according to Ms Bullock.

Key Takeaways

• Sunrise host Natalie Barr has highlighted potential problems with Australia transitioning to a cashless society; among the issues are system failures that could immobilise the economy.
• Barr's comments followed warnings from Reserve Bank Governor Michele Bullock that Australians might have to pay a fee to access physical money in the future.
• The shift towards digital money exposes vulnerabilities, as seen in recent network outages, including at Optus, Telstra, and Westpac Bank.
• RBA Governor Michele Bullock stated that the declining use of cash, down from 70 per cent of consumer payments in 2007 to 13 per cent in 2020, has put pressure on the costs of maintaining and distributing physical money.

The transition to a cashless society is not a straightforward issue. While the convenience and efficiency of digital payments are clear, the potential risks and costs associated with this shift cannot be ignored.

As Australia continues to move towards a cashless future, it is crucial to consider all aspects of this transition and ensure that the needs and concerns of all Australians are taken into account.

What are your thoughts on this issue? Do you think Australia is ready to become a cashless society? Let us know in the comments below.

 

[Brody]

The transition to a cashless society in Australia has been a topic of heated debate in recent years.

While the convenience of digital payments is undeniable, Sunrise host Natalie Barr has raised significant concern about the potential risks of becoming overly reliant on digital currency.

This comes in the wake of a warning from the Reserve Bank Governor that Australians might have to pay a fee to access physical cash in the future.

Barr's concerns stem from the potential for system failures that could bring the country to a standstill if there was no physical cash in circulation.

She cited the Optus outage in November, which left millions of Australians without phone and internet connectivity.

This resulted in many small businesses being unable to accept payments as they relied on EFTPOS linked to the telco.

View attachment 37513

Natalie Barr shares her thoughts on Australia’s move towards becoming a cashless society. Image source: jcomp on Freepik.

While such outages are not uncommon, with Telstra experiencing a similar issue in May and Westpac Bank going offline just last week, they cause issues in the everyday lives of their customers.

These incidents also highlight the vulnerabilities of a digital-only economy. If there is no circulating cash, a simple network disruption could have far-reaching consequences.

The Westpac outage, in particular, caused panic among customers who were unable to see their money when they logged into their accounts.

Many mistakenly thought there had been a hack, illustrating the potential for confusion and fear in a cashless society.

Despite the push towards a cashless society, there are those who believe that there will always be a place for hard currency in the economy.

Minister for Government Services Bill Shorten has stated that physical cash is still essential and hoped that we will not see a world where 'you've got to pay cash to use cash'.

The Cost of Cash

While the convenience of digital payments is undeniable, the cost of maintaining physical cash is growing.

Banks are looking to recoup some of these costs, which could result in customers having to pay a fee to access their own cash.

Some customers and businesses already have to pay a surcharge whenever a 'tap-and-go' payment is done—essentially paying for the infrastructure and systems that facilitate digital payments.

This is a concept that Barr finds difficult to grasp, stating that the idea of paying for the 'privilege' to use your own notes and coins handled by your banks is hard to accept.

'I don't think this will go down well with Aussies—if we have to pay to use our own cash. Let's hope it doesn't get that,' she said.

Reserve Bank of Australia (RBA) Governor Michele Bullock recently highlighted that the share of consumer payments made using cash dropped from 70 per cent in 2007 to only 13 per cent last year.

This trend has put pressure on the running costs of ATMs and the physical distribution of notes and coins.

She warned that the cost of distributing cash could lead to customers being charged for using banknotes, similar to how they are now charged for credit card transactions.

'The issue with cash has always been that businesses don't really understand the costs of cash in their business,' she said in an interview.

'They are, at the moment, understanding it a bit more, but in the past, they haven't internalised the cost of processing.'

She argued that businesses need to understand the costs associated with handling cash, including the need for registers and safes, security measures, and the time and effort required to physically deposit cash at a bank.

She also believed that customers need to pay to use cash and the fees for cash distribution.

'Having said that, it's also true that as economists, you want people to face the prices of using particular services that reflect the cost of those services,' she added.

'It's very difficult to actually enforce payment of cash, but what's going to happen, and what [is happening] at the moment, is [that] the costs end up embedded in the costs of the financial institutions that are providing the services.'

Furthermore, the number of ATMs and bank branches where people can access cash has been steadily declining. While Bullock stated that the distances people need to travel to access cash have changed only a little in recent years, she acknowledged that this may not be the case in the future if access points continue to decline.

The RBA is reportedly keen on maintaining a 'broad coverage of ATMs at reasonable prices, particularly in regional and remote areas' and is open to suggestions from the industry on how the central bank’s regulation could help.

As the sustainability of the current distribution system is in doubt, Australia may need to consider alternative models, such as a wholesale distribution arrangement, according to Ms Bullock.

Key Takeaways

• Sunrise host Natalie Barr has highlighted potential problems with Australia transitioning to a cashless society; among the issues are system failures that could immobilise the economy.
• Barr's comments followed warnings from Reserve Bank Governor Michele Bullock that Australians might have to pay a fee to access physical money in the future.
• The shift towards digital money exposes vulnerabilities, as seen in recent network outages, including at Optus, Telstra, and Westpac Bank.
• RBA Governor Michele Bullock stated that the declining use of cash, down from 70 per cent of consumer payments in 2007 to 13 per cent in 2020, has put pressure on the costs of maintaining and distributing physical money.

The transition to a cashless society is not a straightforward issue. While the convenience and efficiency of digital payments are clear, the potential risks and costs associated with this shift cannot be ignored.

As Australia continues to move towards a cashless future, it is crucial to consider all aspects of this transition and ensure that the needs and concerns of all Australians are taken into account.

What are your thoughts on this issue? Do you think Australia is ready to become a cashless society? Let us know in the comments below.

 

[Brody]

It is inevitable, but not being able to function as we are used to doing is going to cause so much frustration and mental anguish to Every Citizen in Australia.

I believe it is all designed to do away with
any option that is not strictly obvious by the transaction being recorded.

Other than the Barter System whereby money does not change hands for services. That would be in the idea that I do for you a Service (Tradies, Farmers etc. and you do a Service for me ). No money or Card payment changes hands.

It could be limited, but while ever we have something to Trade in return of....)
That monetary value is hidden by exchanging Services by word of mouth.
Tradies, and Farmers have been doing that for years.
FOOD FOR THOUGHT ???

 

[Frigate]

Banks should be punished by revoking banking licence by denial to provide such essential service.

 

[DasherD]

What about all of the roadside outlets, trash and treasure markets, how are these going to function? It all started with the Government and financial bobies wanting to pay via transaction only. What would happen if everyone closed their bank accounts and asked to be paid in cash only? THis may have some impact on all of the scammers.

 

[Paul M]

I Like Cash. But No Matter What if the Decision is Made. We Can’t Avoid it. It’s Been on the News Many Times in the Past Years. I know if They Stop it there will be Kaos. We all Witnessed what Happened with Telstra Optus this Year. I Hardly us Credit. So I think it is Not a Good Idea in My Books. P

 

[Jennylolo]

why are they comparing now to 2007? no sense in that. Covid refusal to accept cash is what has caused decline.

 

[McMaster]

So why do banks find it necessary to charge you to withdraw cash?? After all they are saving much in wages and maintenance as more and more banks and ATM'S are closing. Maybe this is just another example of finding ways to grab our money!!

 

[Clancieblue]

What about all of the roadside outlets, trash and treasure markets, how are these going to function? It all started with the Government and financial bobies wanting to pay via transaction only. What would happen if everyone closed their bank accounts and asked to be paid in cash only? THis may have some impact on all of the scammers.

Government doesn't care about those things; they don't pay tax.

 

[Brody]

IúWhat about all of the roadside outlets, trash and treasure markets, how are these going to function? It all started with the Government and financial bobies wanting to pay via transaction only. What would happen if everyone closed their bank accounts and asked to be paid in cash only? THis may have some impact on all of the scammers.

Good thought it might be possible for a while, but no doubt the Government
would find a way to Police It.

 

[Ronloby]

Until the internet is available and reliable to ALL Australians CASH must stay a legal tender. It must be the Government that steps up and makes sure internet coverage is available before a cashless society takes over.

 

[Janice McKay]

The transition to a cashless society in Australia has been a topic of heated debate in recent years.

While the convenience of digital payments is undeniable, Sunrise host Natalie Barr has raised significant concern about the potential risks of becoming overly reliant on digital currency.

This comes in the wake of a warning from the Reserve Bank Governor that Australians might have to pay a fee to access physical cash in the future.

Barr's concerns stem from the potential for system failures that could bring the country to a standstill if there was no physical cash in circulation.

She cited the Optus outage in November, which left millions of Australians without phone and internet connectivity.

This resulted in many small businesses being unable to accept payments as they relied on EFTPOS linked to the telco.

View attachment 37513

Natalie Barr shares her thoughts on Australia’s move towards becoming a cashless society. Image source: jcomp on Freepik.

While such outages are not uncommon, with Telstra experiencing a similar issue in May and Westpac Bank going offline just last week, they cause issues in the everyday lives of their customers.

These incidents also highlight the vulnerabilities of a digital-only economy. If there is no circulating cash, a simple network disruption could have far-reaching consequences.

The Westpac outage, in particular, caused panic among customers who were unable to see their money when they logged into their accounts.

Many mistakenly thought there had been a hack, illustrating the potential for confusion and fear in a cashless society.

Despite the push towards a cashless society, there are those who believe that there will always be a place for hard currency in the economy.

Minister for Government Services Bill Shorten has stated that physical cash is still essential and hoped that we will not see a world where 'you've got to pay cash to use cash'.

The Cost of Cash

While the convenience of digital payments is undeniable, the cost of maintaining physical cash is growing.

Banks are looking to recoup some of these costs, which could result in customers having to pay a fee to access their own cash.

Some customers and businesses already have to pay a surcharge whenever a 'tap-and-go' payment is done—essentially paying for the infrastructure and systems that facilitate digital payments.

This is a concept that Barr finds difficult to grasp, stating that the idea of paying for the 'privilege' to use your own notes and coins handled by your banks is hard to accept.

'I don't think this will go down well with Aussies—if we have to pay to use our own cash. Let's hope it doesn't get that,' she said.

Reserve Bank of Australia (RBA) Governor Michele Bullock recently highlighted that the share of consumer payments made using cash dropped from 70 per cent in 2007 to only 13 per cent last year.

This trend has put pressure on the running costs of ATMs and the physical distribution of notes and coins.

She warned that the cost of distributing cash could lead to customers being charged for using banknotes, similar to how they are now charged for credit card transactions.

'The issue with cash has always been that businesses don't really understand the costs of cash in their business,' she said in an interview.

'They are, at the moment, understanding it a bit more, but in the past, they haven't internalised the cost of processing.'

She argued that businesses need to understand the costs associated with handling cash, including the need for registers and safes, security measures, and the time and effort required to physically deposit cash at a bank.

She also believed that customers need to pay to use cash and the fees for cash distribution.

'Having said that, it's also true that as economists, you want people to face the prices of using particular services that reflect the cost of those services,' she added.

'It's very difficult to actually enforce payment of cash, but what's going to happen, and what [is happening] at the moment, is [that] the costs end up embedded in the costs of the financial institutions that are providing the services.'

Furthermore, the number of ATMs and bank branches where people can access cash has been steadily declining. While Bullock stated that the distances people need to travel to access cash have changed only a little in recent years, she acknowledged that this may not be the case in the future if access points continue to decline.

The RBA is reportedly keen on maintaining a 'broad coverage of ATMs at reasonable prices, particularly in regional and remote areas' and is open to suggestions from the industry on how the central bank’s regulation could help.

As the sustainability of the current distribution system is in doubt, Australia may need to consider alternative models, such as a wholesale distribution arrangement, according to Ms Bullock.

Key Takeaways

• Sunrise host Natalie Barr has highlighted potential problems with Australia transitioning to a cashless society; among the issues are system failures that could immobilise the economy.
• Barr's comments followed warnings from Reserve Bank Governor Michele Bullock that Australians might have to pay a fee to access physical money in the future.
• The shift towards digital money exposes vulnerabilities, as seen in recent network outages, including at Optus, Telstra, and Westpac Bank.
• RBA Governor Michele Bullock stated that the declining use of cash, down from 70 per cent of consumer payments in 2007 to 13 per cent in 2020, has put pressure on the costs of maintaining and distributing physical money.

The transition to a cashless society is not a straightforward issue. While the convenience and efficiency of digital payments are clear, the potential risks and costs associated with this shift cannot be ignored.

As Australia continues to move towards a cashless future, it is crucial to consider all aspects of this transition and ensure that the needs and concerns of all Australians are taken into account.

What are your thoughts on this issue? Do you think Australia is ready to become a cashless society? Let us know in the comments below.

Well I myself would not want a cashless society. When ANZ crashed a few months ago, my husband and I had just done our fortnightly grocery shopping. Can you imagine how embarrassed we felt not being able use our Eftpos card to pay for it. If banks can close branches, then they can cope with on line purchases and payment of bills by computer. They want it both ways, our cash and not being inconvenienced to supplying us cash. When do we say enough.

 

[Brody]

Until the internet is available and reliable to ALL Australians CASH must stay a legal tender. It must be the Government that steps up and makes sure internet coverage is available before a cashless society takes over.

Ditto !!! They really are in for a Challenge.

 

[David567]

Banks no longer do anything to earn the multi billions of dollars they make. They charge merchants to provide a service for them. That service is added to our purchases. They have no staff to pay except for the massive bonus the CEO's get, they charge to serve you, they're closing branches, ditching ATM's. Next financial year we can expect the banks will have stolen in excess of $100 billion dollars from us and they are finding ways to increase that even more. We somehow need to stop this. and the government is no help.

 

[Shane/#]

The transition to a cashless society in Australia has been a topic of heated debate in recent years.

While the convenience of digital payments is undeniable, Sunrise host Natalie Barr has raised significant concern about the potential risks of becoming overly reliant on digital currency.

This comes in the wake of a warning from the Reserve Bank Governor that Australians might have to pay a fee to access physical cash in the future.

Barr's concerns stem from the potential for system failures that could bring the country to a standstill if there was no physical cash in circulation.

She cited the Optus outage in November, which left millions of Australians without phone and internet connectivity.

This resulted in many small businesses being unable to accept payments as they relied on EFTPOS linked to the telco.

View attachment 37513

Natalie Barr shares her thoughts on Australia’s move towards becoming a cashless society. Image source: jcomp on Freepik.

While such outages are not uncommon, with Telstra experiencing a similar issue in May and Westpac Bank going offline just last week, they cause issues in the everyday lives of their customers.

These incidents also highlight the vulnerabilities of a digital-only economy. If there is no circulating cash, a simple network disruption could have far-reaching consequences.

The Westpac outage, in particular, caused panic among customers who were unable to see their money when they logged into their accounts.

Many mistakenly thought there had been a hack, illustrating the potential for confusion and fear in a cashless society.

Despite the push towards a cashless society, there are those who believe that there will always be a place for hard currency in the economy.

Minister for Government Services Bill Shorten has stated that physical cash is still essential and hoped that we will not see a world where 'you've got to pay cash to use cash'.

The Cost of Cash

While the convenience of digital payments is undeniable, the cost of maintaining physical cash is growing.

Banks are looking to recoup some of these costs, which could result in customers having to pay a fee to access their own cash.

Some customers and businesses already have to pay a surcharge whenever a 'tap-and-go' payment is done—essentially paying for the infrastructure and systems that facilitate digital payments.

This is a concept that Barr finds difficult to grasp, stating that the idea of paying for the 'privilege' to use your own notes and coins handled by your banks is hard to accept.

'I don't think this will go down well with Aussies—if we have to pay to use our own cash. Let's hope it doesn't get that,' she said.

Reserve Bank of Australia (RBA) Governor Michele Bullock recently highlighted that the share of consumer payments made using cash dropped from 70 per cent in 2007 to only 13 per cent last year.

This trend has put pressure on the running costs of ATMs and the physical distribution of notes and coins.

She warned that the cost of distributing cash could lead to customers being charged for using banknotes, similar to how they are now charged for credit card transactions.

'The issue with cash has always been that businesses don't really understand the costs of cash in their business,' she said in an interview.

'They are, at the moment, understanding it a bit more, but in the past, they haven't internalised the cost of processing.'

She argued that businesses need to understand the costs associated with handling cash, including the need for registers and safes, security measures, and the time and effort required to physically deposit cash at a bank.

She also believed that customers need to pay to use cash and the fees for cash distribution.

'Having said that, it's also true that as economists, you want people to face the prices of using particular services that reflect the cost of those services,' she added.

'It's very difficult to actually enforce payment of cash, but what's going to happen, and what [is happening] at the moment, is [that] the costs end up embedded in the costs of the financial institutions that are providing the services.'

Furthermore, the number of ATMs and bank branches where people can access cash has been steadily declining. While Bullock stated that the distances people need to travel to access cash have changed only a little in recent years, she acknowledged that this may not be the case in the future if access points continue to decline.

The RBA is reportedly keen on maintaining a 'broad coverage of ATMs at reasonable prices, particularly in regional and remote areas' and is open to suggestions from the industry on how the central bank’s regulation could help.

As the sustainability of the current distribution system is in doubt, Australia may need to consider alternative models, such as a wholesale distribution arrangement, according to Ms Bullock.

Key Takeaways

• Sunrise host Natalie Barr has highlighted potential problems with Australia transitioning to a cashless society; among the issues are system failures that could immobilise the economy.
• Barr's comments followed warnings from Reserve Bank Governor Michele Bullock that Australians might have to pay a fee to access physical money in the future.
• The shift towards digital money exposes vulnerabilities, as seen in recent network outages, including at Optus, Telstra, and Westpac Bank.
• RBA Governor Michele Bullock stated that the declining use of cash, down from 70 per cent of consumer payments in 2007 to 13 per cent in 2020, has put pressure on the costs of maintaining and distributing physical money.

The transition to a cashless society is not a straightforward issue. While the convenience and efficiency of digital payments are clear, the potential risks and costs associated with this shift cannot be ignored.

As Australia continues to move towards a cashless future, it is crucial to consider all aspects of this transition and ensure that the needs and concerns of all Australians are taken into account.

What are your thoughts on this issue? Do you think Australia is ready to become a cashless society? Let us know in the comments below.

This shit started back in the 90's when the banks pushed for electronic pay instead off cash on pay day basically controlling your money then charges to get your fund's out and if it wasn't your bank to access the cost was greater all in all the bastards are getting rich off the people they the bank's were screaming for people to save with them now it's about how much they can screw over the customer for profit as for cashless society these parasites want to control your money and protect their profits CASH IS KING as its yours doesn't need internet or power to be used you have cash you are in control not the other way around F#ck the cashless society

 

[magpie1]

Going solely digital means that you really have lost all control of your finances....the banks can do what they please and charge whatever they want for you to gain access to your funds......it's an absolute nightmare in the making and there will be nothing that you can do to access all of your money at any time that you wish to, if the banks continue to make rules to suit themselves. Hell on earth how has it come to this.?

 

[Topher]

The transition to a cashless society in Australia has been a topic of heated debate in recent years.

While the convenience of digital payments is undeniable, Sunrise host Natalie Barr has raised significant concern about the potential risks of becoming overly reliant on digital currency.

This comes in the wake of a warning from the Reserve Bank Governor that Australians might have to pay a fee to access physical cash in the future.

Barr's concerns stem from the potential for system failures that could bring the country to a standstill if there was no physical cash in circulation.

She cited the Optus outage in November, which left millions of Australians without phone and internet connectivity.

This resulted in many small businesses being unable to accept payments as they relied on EFTPOS linked to the telco.

View attachment 37513

Natalie Barr shares her thoughts on Australia’s move towards becoming a cashless society. Image source: jcomp on Freepik.

While such outages are not uncommon, with Telstra experiencing a similar issue in May and Westpac Bank going offline just last week, they cause issues in the everyday lives of their customers.

These incidents also highlight the vulnerabilities of a digital-only economy. If there is no circulating cash, a simple network disruption could have far-reaching consequences.

The Westpac outage, in particular, caused panic among customers who were unable to see their money when they logged into their accounts.

Many mistakenly thought there had been a hack, illustrating the potential for confusion and fear in a cashless society.

Despite the push towards a cashless society, there are those who believe that there will always be a place for hard currency in the economy.

Minister for Government Services Bill Shorten has stated that physical cash is still essential and hoped that we will not see a world where 'you've got to pay cash to use cash'.

The Cost of Cash

While the convenience of digital payments is undeniable, the cost of maintaining physical cash is growing.

Banks are looking to recoup some of these costs, which could result in customers having to pay a fee to access their own cash.

Some customers and businesses already have to pay a surcharge whenever a 'tap-and-go' payment is done—essentially paying for the infrastructure and systems that facilitate digital payments.

This is a concept that Barr finds difficult to grasp, stating that the idea of paying for the 'privilege' to use your own notes and coins handled by your banks is hard to accept.

'I don't think this will go down well with Aussies—if we have to pay to use our own cash. Let's hope it doesn't get that,' she said.

Reserve Bank of Australia (RBA) Governor Michele Bullock recently highlighted that the share of consumer payments made using cash dropped from 70 per cent in 2007 to only 13 per cent last year.

This trend has put pressure on the running costs of ATMs and the physical distribution of notes and coins.

She warned that the cost of distributing cash could lead to customers being charged for using banknotes, similar to how they are now charged for credit card transactions.

'The issue with cash has always been that businesses don't really understand the costs of cash in their business,' she said in an interview.

'They are, at the moment, understanding it a bit more, but in the past, they haven't internalised the cost of processing.'

She argued that businesses need to understand the costs associated with handling cash, including the need for registers and safes, security measures, and the time and effort required to physically deposit cash at a bank.

She also believed that customers need to pay to use cash and the fees for cash distribution.

'Having said that, it's also true that as economists, you want people to face the prices of using particular services that reflect the cost of those services,' she added.

'It's very difficult to actually enforce payment of cash, but what's going to happen, and what [is happening] at the moment, is [that] the costs end up embedded in the costs of the financial institutions that are providing the services.'

Furthermore, the number of ATMs and bank branches where people can access cash has been steadily declining. While Bullock stated that the distances people need to travel to access cash have changed only a little in recent years, she acknowledged that this may not be the case in the future if access points continue to decline.

The RBA is reportedly keen on maintaining a 'broad coverage of ATMs at reasonable prices, particularly in regional and remote areas' and is open to suggestions from the industry on how the central bank’s regulation could help.

As the sustainability of the current distribution system is in doubt, Australia may need to consider alternative models, such as a wholesale distribution arrangement, according to Ms Bullock.

Key Takeaways

• Sunrise host Natalie Barr has highlighted potential problems with Australia transitioning to a cashless society; among the issues are system failures that could immobilise the economy.
• Barr's comments followed warnings from Reserve Bank Governor Michele Bullock that Australians might have to pay a fee to access physical money in the future.
• The shift towards digital money exposes vulnerabilities, as seen in recent network outages, including at Optus, Telstra, and Westpac Bank.
• RBA Governor Michele Bullock stated that the declining use of cash, down from 70 per cent of consumer payments in 2007 to 13 per cent in 2020, has put pressure on the costs of maintaining and distributing physical money.

The transition to a cashless society is not a straightforward issue. While the convenience and efficiency of digital payments are clear, the potential risks and costs associated with this shift cannot be ignored.

As Australia continues to move towards a cashless future, it is crucial to consider all aspects of this transition and ensure that the needs and concerns of all Australians are taken into account.

What are your thoughts on this issue? Do you think Australia is ready to become a cashless society? Let us know in the comments below.

 

[Topher]

Bang go the "Gold coin entry" venues - and the "Buy and Sell" sites on Marketplace , Bunnings' (and others') barbeques.. and busking.
I am sure most people could come up with so many more places where coins used to reign supreme (vending machines being one)!
Of course, in the journey of one $100 note obtained from selling an unwanted item (which might pass through a dozen hands in just one week) no fees have been charged, no bank surtax has been extracted and no GST has been added (and the ATO has not been aware of it)!
That same $100, spent through eftpos machines, would garner 0.5% of that 12 x $100 transactions: $6 ... to the banks!
Black Friday sales were expected to move $6.1 BILLION through the economy: at 0.5%, that would be $3.05 MILLION in fees to the banks - and that's just for one week's/day's sales!
We have the situation already: many events and services may be paid for ONLY by eftpos transactions: assuming $1000 per week per person in Australia (and I am talking supermarket shopping, travel, entertainment, real estate movements, etc. as well (admittedly, some of this is occurring even now) and this could amount, conservatively, to $10 BILLION per week ... $5 MILLION to the banks EVERY WEEK!
Once, we moved money by cash and the banks covered the costs. Now, it seems, we are being expected to do the Banks' jobs for them ... and pay them for our efforts at conducting automatic transactions!
"The Big Four" can only get bigger - and Big brother gets to know EVERY dollar you receive and spend!
Bargain!

 

[Luckyus]

The transition to a cashless society in Australia has been a topic of heated debate in recent years.

While the convenience of digital payments is undeniable, Sunrise host Natalie Barr has raised significant concern about the potential risks of becoming overly reliant on digital currency.

This comes in the wake of a warning from the Reserve Bank Governor that Australians might have to pay a fee to access physical cash in the future.

Barr's concerns stem from the potential for system failures that could bring the country to a standstill if there was no physical cash in circulation.

She cited the Optus outage in November, which left millions of Australians without phone and internet connectivity.

This resulted in many small businesses being unable to accept payments as they relied on EFTPOS linked to the telco.

View attachment 37513

Natalie Barr shares her thoughts on Australia’s move towards becoming a cashless society. Image source: jcomp on Freepik.

While such outages are not uncommon, with Telstra experiencing a similar issue in May and Westpac Bank going offline just last week, they cause issues in the everyday lives of their customers.

These incidents also highlight the vulnerabilities of a digital-only economy. If there is no circulating cash, a simple network disruption could have far-reaching consequences.

The Westpac outage, in particular, caused panic among customers who were unable to see their money when they logged into their accounts.

Many mistakenly thought there had been a hack, illustrating the potential for confusion and fear in a cashless society.

Despite the push towards a cashless society, there are those who believe that there will always be a place for hard currency in the economy.

Minister for Government Services Bill Shorten has stated that physical cash is still essential and hoped that we will not see a world where 'you've got to pay cash to use cash'.

The Cost of Cash

While the convenience of digital payments is undeniable, the cost of maintaining physical cash is growing.

Banks are looking to recoup some of these costs, which could result in customers having to pay a fee to access their own cash.

Some customers and businesses already have to pay a surcharge whenever a 'tap-and-go' payment is done—essentially paying for the infrastructure and systems that facilitate digital payments.

This is a concept that Barr finds difficult to grasp, stating that the idea of paying for the 'privilege' to use your own notes and coins handled by your banks is hard to accept.

'I don't think this will go down well with Aussies—if we have to pay to use our own cash. Let's hope it doesn't get that,' she said.

Reserve Bank of Australia (RBA) Governor Michele Bullock recently highlighted that the share of consumer payments made using cash dropped from 70 per cent in 2007 to only 13 per cent last year.

This trend has put pressure on the running costs of ATMs and the physical distribution of notes and coins.

She warned that the cost of distributing cash could lead to customers being charged for using banknotes, similar to how they are now charged for credit card transactions.

'The issue with cash has always been that businesses don't really understand the costs of cash in their business,' she said in an interview.

'They are, at the moment, understanding it a bit more, but in the past, they haven't internalised the cost of processing.'

She argued that businesses need to understand the costs associated with handling cash, including the need for registers and safes, security measures, and the time and effort required to physically deposit cash at a bank.

She also believed that customers need to pay to use cash and the fees for cash distribution.

'Having said that, it's also true that as economists, you want people to face the prices of using particular services that reflect the cost of those services,' she added.

'It's very difficult to actually enforce payment of cash, but what's going to happen, and what [is happening] at the moment, is [that] the costs end up embedded in the costs of the financial institutions that are providing the services.'

Furthermore, the number of ATMs and bank branches where people can access cash has been steadily declining. While Bullock stated that the distances people need to travel to access cash have changed only a little in recent years, she acknowledged that this may not be the case in the future if access points continue to decline.

The RBA is reportedly keen on maintaining a 'broad coverage of ATMs at reasonable prices, particularly in regional and remote areas' and is open to suggestions from the industry on how the central bank’s regulation could help.

As the sustainability of the current distribution system is in doubt, Australia may need to consider alternative models, such as a wholesale distribution arrangement, according to Ms Bullock.

Key Takeaways

• Sunrise host Natalie Barr has highlighted potential problems with Australia transitioning to a cashless society; among the issues are system failures that could immobilise the economy.
• Barr's comments followed warnings from Reserve Bank Governor Michele Bullock that Australians might have to pay a fee to access physical money in the future.
• The shift towards digital money exposes vulnerabilities, as seen in recent network outages, including at Optus, Telstra, and Westpac Bank.
• RBA Governor Michele Bullock stated that the declining use of cash, down from 70 per cent of consumer payments in 2007 to 13 per cent in 2020, has put pressure on the costs of maintaining and distributing physical money.

The transition to a cashless society is not a straightforward issue. While the convenience and efficiency of digital payments are clear, the potential risks and costs associated with this shift cannot be ignored.

As Australia continues to move towards a cashless future, it is crucial to consider all aspects of this transition and ensure that the needs and concerns of all Australians are taken into account.

What are your thoughts on this issue? Do you think Australia is ready to become a cashless society? Let us know in the comments below.

The people tell Albo to take off his clown mask and show em his real face. Spoiler: he's still just a bloody clown inside​

 

[IAN3005]

The transition to a cashless society in Australia has been a topic of heated debate in recent years.

While the convenience of digital payments is undeniable, Sunrise host Natalie Barr has raised significant concern about the potential risks of becoming overly reliant on digital currency.

This comes in the wake of a warning from the Reserve Bank Governor that Australians might have to pay a fee to access physical cash in the future.

Barr's concerns stem from the potential for system failures that could bring the country to a standstill if there was no physical cash in circulation.

She cited the Optus outage in November, which left millions of Australians without phone and internet connectivity.

This resulted in many small businesses being unable to accept payments as they relied on EFTPOS linked to the telco.

View attachment 37513

Natalie Barr shares her thoughts on Australia’s move towards becoming a cashless society. Image source: jcomp on Freepik.

While such outages are not uncommon, with Telstra experiencing a similar issue in May and Westpac Bank going offline just last week, they cause issues in the everyday lives of their customers.

These incidents also highlight the vulnerabilities of a digital-only economy. If there is no circulating cash, a simple network disruption could have far-reaching consequences.

The Westpac outage, in particular, caused panic among customers who were unable to see their money when they logged into their accounts.

Many mistakenly thought there had been a hack, illustrating the potential for confusion and fear in a cashless society.

Despite the push towards a cashless society, there are those who believe that there will always be a place for hard currency in the economy.

Minister for Government Services Bill Shorten has stated that physical cash is still essential and hoped that we will not see a world where 'you've got to pay cash to use cash'.

The Cost of Cash

While the convenience of digital payments is undeniable, the cost of maintaining physical cash is growing.

Banks are looking to recoup some of these costs, which could result in customers having to pay a fee to access their own cash.

Some customers and businesses already have to pay a surcharge whenever a 'tap-and-go' payment is done—essentially paying for the infrastructure and systems that facilitate digital payments.

This is a concept that Barr finds difficult to grasp, stating that the idea of paying for the 'privilege' to use your own notes and coins handled by your banks is hard to accept.

'I don't think this will go down well with Aussies—if we have to pay to use our own cash. Let's hope it doesn't get that,' she said.

Reserve Bank of Australia (RBA) Governor Michele Bullock recently highlighted that the share of consumer payments made using cash dropped from 70 per cent in 2007 to only 13 per cent last year.

This trend has put pressure on the running costs of ATMs and the physical distribution of notes and coins.

She warned that the cost of distributing cash could lead to customers being charged for using banknotes, similar to how they are now charged for credit card transactions.

'The issue with cash has always been that businesses don't really understand the costs of cash in their business,' she said in an interview.

'They are, at the moment, understanding it a bit more, but in the past, they haven't internalised the cost of processing.'

She argued that businesses need to understand the costs associated with handling cash, including the need for registers and safes, security measures, and the time and effort required to physically deposit cash at a bank.

She also believed that customers need to pay to use cash and the fees for cash distribution.

'Having said that, it's also true that as economists, you want people to face the prices of using particular services that reflect the cost of those services,' she added.

'It's very difficult to actually enforce payment of cash, but what's going to happen, and what [is happening] at the moment, is [that] the costs end up embedded in the costs of the financial institutions that are providing the services.'

Furthermore, the number of ATMs and bank branches where people can access cash has been steadily declining. While Bullock stated that the distances people need to travel to access cash have changed only a little in recent years, she acknowledged that this may not be the case in the future if access points continue to decline.

The RBA is reportedly keen on maintaining a 'broad coverage of ATMs at reasonable prices, particularly in regional and remote areas' and is open to suggestions from the industry on how the central bank’s regulation could help.

As the sustainability of the current distribution system is in doubt, Australia may need to consider alternative models, such as a wholesale distribution arrangement, according to Ms Bullock.

Key Takeaways

• Sunrise host Natalie Barr has highlighted potential problems with Australia transitioning to a cashless society; among the issues are system failures that could immobilise the economy.
• Barr's comments followed warnings from Reserve Bank Governor Michele Bullock that Australians might have to pay a fee to access physical money in the future.
• The shift towards digital money exposes vulnerabilities, as seen in recent network outages, including at Optus, Telstra, and Westpac Bank.
• RBA Governor Michele Bullock stated that the declining use of cash, down from 70 per cent of consumer payments in 2007 to 13 per cent in 2020, has put pressure on the costs of maintaining and distributing physical money.

The transition to a cashless society is not a straightforward issue. While the convenience and efficiency of digital payments are clear, the potential risks and costs associated with this shift cannot be ignored.

As Australia continues to move towards a cashless future, it is crucial to consider all aspects of this transition and ensure that the needs and concerns of all Australians are taken into account.

What are your thoughts on this issue? Do you think Australia is ready to become a cashless society? Let us know in the comments below.

Just let them try and charge me for using cash...... they ain't seen the customer from hell yet.....