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Is Cash Endangered?

October 27, 2020

The use of technological instruments is increasing, we may be on the way to global monetary digitization.

4 min read

The opinions of the employees of You are personal.

Is Cash Endangered?
Is Cash Endangered?


  • In order to achieve better adaptation to technology and especially at the transactional level, incentives need to be provided that benefit and encourage the use of this new modality. This is a task for everyone involved, for authorities as well as for companies and society.

Social evolution is in a curve and a phase of adjustment. We have made great strides in the last few months. The use of technological tools is increasing, we may be on the way there global monetary digitization.

Going back a few decades, explaining or understanding e-commerce in order to transfer any amount without going to a bank branch and even paying with QR codes on your cell phone has been unthinkable.

We have seen the great effort that the Banco de México has made in implementing CoDi. However, the dissemination strategy has not produced the expected results. It is worth noting that this technology has been used in China for several years and has lagged far behind in this area with great success.

Reducing cash consumption could be socially beneficial. We need to consider several variables that would create an employment complication. Both private and public institutions would need to find a way to adapt without affecting the work of everyone involved in the creation, transportation, security and operation that involve handling physical money.

Technology has permeated every moment of our lives; The synergy that is gradually emerging with society is highly relevant. Dare you say that the physical extinction of cash would to some extent be irresponsible. There are several factors to consider; such as the access to various platforms that accelerate this transition, the high levels of informal trading and even reluctance to fail to meet tax obligations; that is, paying taxes.

One of the obstacles we have in Mexico is the technological accessibility and coverage of the Internet network. Not to mention the phone tariffs and even the high cost of a mobile data service. In our geography we still find many points that lack a good signal. The telecommunications infrastructure offers great opportunities and opportunities to talk about the supply and demand of telephone services.

In terms of security, we found very interesting benefits, and we speculated a little that “common” crimes would be minimized, so to speak. However, all institutions would have to robustly strengthen their cybernetic devices to ensure clean and tidy transactions. with no margin for fraud or controversy.

Image: rupixen.com via Unsplash

Some of the arguments of various sectors or industries for which they do not fully accept bank digitization are the control of resources. In the past few months, steps have been taken to increase collection. Many companies, entrepreneurs and families sometimes feel unprotected and imagine tax prosecution.

In order to achieve better adaptation to technology and especially at the transactional level, incentives need to be provided that benefit and encourage the use of this new modality. This is a task for everyone involved, for authorities as well as for companies and society.

As entrepreneurs, we are at a crucial moment to achieve technological change from our platform and our service. In a way, we need to guide the user and show them the facilities we have today without feeling or suffering from any sense of vulnerability.

Cash will not go away in the short or medium term, the path will be followed little by little, but we have to keep an eye on the socio-economic classes and find the perfect combination so as not to exclude any part of the population.

Given the current situation, there is a latent need in the entrepreneurial universe to reinvent itself and simplify operations.