Global Breaking News - Monday, December 23, 2024

The End of Cash
Alternatives to cash are proliferating: not only point-of-sale technologies like Square and Google Wallet but also a digital currency, bitcoin, which has attracted the interest of rivals, criminals and regulators, along with plenty of skepticism. But still, most holiday shoppers this year are wielding credit cards, debit cards and cash. Is there a better way? Should the U.S. eliminate cash and stop printing currency?
* alternative (to ~) = (~에 대한) 대안/ proliferate = 급증하다, (빠르게) 확산되다/ skepticism = 회의(론)/ wield = (권력, 권위 등을) 행사하다; (무기, 도구를) 휘두르다/ eliminate = 없애다, 제거(삭제)하다

  미국은 현금(현찰)을 없애고 지폐 인쇄를 멈추어야 하나요?

1. A Wasteful System, but Hard to Replace
There are hidden costs to a cash economy, but an effective alternative must replicate the convenience of a dollar. So far nothing can.

2. Cash Sustains Small Businesses
Through the worst, when banks stopped lending and credit was exhausted, cash has carried us through (sometimes just barely).

3. If Privacy Matters, Cash Is Still King
Digital currencies are still a long way from providing a feasible alternative. Physical cash remains the only anonymous and accessible medium of exchange in this country.

4. Cash Is a Crucial Option for Consumers
Some consumers spend more responsibly when they deal in cash. Others skip credit cards to avoid data mining and identity theft.

Sample Essay

If Privacy Matters, Cash Is Still King

Many new technologies seem designed to eliminate cash. Square provides an accessible way for businesses to accept credit cards, and emerging digital currencies such as bitcoin are purely digital forms of cash.

Although these technologies are increasingly prevalent, the vast majority of them assume access to (at least) a credit card. The argument that we could move toward reliance on these technologies and eliminate cash thus ignores the millions of Americans who are not currently part of the mainstream financial system. Some stand apart by choice, because they are concerned about privacy and do not want their personal information in the hands of banks and credit card companies. Others have no alternative, because they do not qualify or cannot afford the banking fees.

One exception to this rule is emerging digital currencies, such as bitcoin, that seek to emulate the anonymity and accessibility of cash. You can currently buy bitcoins using cash at an ATM, and you are then free to do business online with any vendor or individual who accepts bitcoins.

The problem, however, is that these currencies are still a long way from providing a feasible alternative to cash. Academic studies demonstrate that bitcoin does not achieve the anonymity of physical cash: every bitcoin essentially behaves like a marked bill. And although new initiatives by startups such as Coinbase are likely to make bitcoin significantly more accessible in the short term, the larger issue is that bitcoin currently offers no consumer protection. Users who keep bitcoins in online banks (and even many who don't) are subject to near-constant theft, and because transactions are irreversible, victims are unlikely to recover stolen bitcoins.

For now, bitcoin should be viewed as high risk and not ready for mass adoption. And in the meantime, physical cash remains the only anonymous and accessible medium of exchange in this country.