The European Commission has said that its proposal of putting a cap on the upper limit to cash payments for individuals has met with strong opposition with an overwhelming 95 per cent of the population rejecting the proposal.
The proposal was laid out in January earlier this year and this proposal was followed by an EU-wide survey to garner a greater understanding of what the people felt about the plan. The survey concluded that 95 per cent of the respondents are rejecting the proposal and strongly believe that this measure isn’t useful at all. The report of the survey notes that majority of the respondents were from Germany – a country where financial privacy matters a lot and where people love cash payments.
EU isn’t the first one to propose such a plan. One of the best examples of how governments have been trying to curb excessive use of cash is India. Late last year, the Indian government demonetized high denomination notes to wipe out fake notes as well as to curb terrorism financing as well as black money. There was not widespread protest and the transition to a cashless society has already begun slow and steadily.
Amsterdam too introduced an innovative way for homeless people to collect money. Homeless people were given jackets that allowed them to digitally receive money, which can be used to buy food, baths, and accommodations at a homeless shelter.
Bitcoin & Cashless society
Bitcoin isn’t getting along with regulatory agencies and a great example of this is how the Venezuelan government decided to crack down on Bitcoin operations. After the Venezuelan Bolivar dramatically dropped in value, many people decided to exchange their remaining money for bitcoins.
When it comes to cash payment limits, citizens are forced to use less cash or no cash at all and this could be a factor that could force more and more people towards cryptocurrencies like Bitcoin, Ethereum among others.