Cash Is a Fundamental Human Right. Not So Says Business Insider

Access to cash is a fundamental human right. If banks cannot give you your cash, they should be dissolved. When you deposit your money into a bank, it is no longer yours, but is a loan to the bank. Since that is well understood in banking, the implication is that while it is in your possession, the cash belongs to you.

Therefore, the Business Insider article speaking to the issue of cash with the diverting title Traditional Banks May Be in Trouble Due to Digital Banking is very troubling. The article is an obituary for cash as a viable option going forward. And it is written by BI Intelligence, right from the heart of Business Insider.

Here are just a few disturbing trends they see. I have written about some of them, but the authors of this article have a positive take on these very disturbing trends, that have yet to be proven. This is my brief take on the points in the article:

1. The Bank Branch will become obsolete.

2. Banks should upgrade their technology to keep communication open with customers.

3. The ATM will go the way of the phone booth.

4. The smartphone will become the primary banking channel

Of course you need a subscription to get the whole scoop. I don't want to encourage this thinking.

But what concerns me is that the destruction of cash will be the destruction of freedom. When you loan money to the bank, it becomes the bank's money. When you don't loan money to the bank, you can save it under the mattress or spend it. It is your money.

But the banks are counting on technology to impose the abolition of freedom to hold cash, so they don't have to write a law. Same with Sweden, in particular, who seeks to abolish cash through allowing business the power to refuse cash transactions.

I believe both the destruction of access to cash and the refusal to take cash should be against the law at least for retail goods. The government must protect cash because if it doesn't, the consumer will only have two choices, to spend his money or lend it to the bank. 

Technology is doing for banks what they want to impose, forced savings or the choice to spend. They want a hot potato effect of spending to boost the economy. They would try for negative rates on retail accounts and push it as far as they need to, to get people to spend. They want to do away with big bills to force people to spend or deposit money, since it is cumbersome to take small bills around for large quantities of money.

And of course, this desire for a cashless society is all couched in the concept of crime. Stop crime by stopping large cash transactions they say. But it never was about crime. It was always about negative interest rates.  The real crime is the destruction of the freedom to access cash. That is a societal crime of immense proportions.  


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