How to Start with Cryptocurrency | Episode 12: The Trend Toward Cashless Society and Cryptocurrency [Shuto Fudou]
Famous for trying to introduce a proprietary virtual currency (cryptocurrency) called Libra, Facebook is facing cautious remarks from top officials in major countries’ administrations and finance ministries. This news has moved the prices of cryptocurrencies such as Bitcoin. In Japan, there has been increasing exposure to news about cashless society. This time, let’s have Shutaro Fudō give us the background to these movements.
*This article is a re-edit of FX攻略.com’s October 2019 issue. Please note that the market information written in the main text may differ from current market conditions.
Shutaro Fudō (Fudō Shutarō) Profile
Forex instructor and writer. Publishes seminar DVDs and interview CDs through a publisher. Besides giving lectures at financial exchanges, stock exchanges, FX brokers, and investment trust companies, he also writes for magazines and serves as a school instructor for FX and stocks.
Official site：Shutaro Fudō's “Behind the News Coverage”
twitter：https://twitter.com/syutaro_fudo
Advantages and Disadvantages of Cashless Society
In Japan, there is a growing movement to reduce cash transactions and promote cashless payments through credit cards, electronic money, and electronic payment systems. Nowadays you often see security guards in protective gear transporting cash-filled boxes to ATMs. One of the advantages of going cashless is that the number of times large amounts of cash must be carried is reduced, decreasing the risk of being robbed during transport. Additionally, with cashless systems, consumers can shop and dine without worrying about how much money they have on hand, which can lead to increased sales for restaurants and retailers.
On the other hand, there are several drawbacks to cashless society. There are many different cashless methods—credit cards, electronic money, electronic payment apps—and using the right one for each payment scenario can be tedious. Recently, major Japanese retailers’ electronic payment systems have been widely reported as being fraudulently used, and there is ongoing concern that cashless systems may continue to be misused or involved in fraud. There is also concern that the benefits of cashlessness could lead consumers to overspend.
Furthermore, the mobile devices required for electronic payments, such as smartphones, can fail to work when the battery dies. Japan experiences frequent natural disasters like earthquakes and typhoons, and in some cases large-scale power outages can occur. Cashless systems require electricity, so during a power outage, cashless transactions become difficult.
