Denmark May Be the First Country to Say Goodbye to Cash
Denmark officially wants to be the first cashless society. The executive director of the Danish Bankers Association, Michael Busk-Jepsen, said:
“A cashless society is no longer an illusion, but a vision that can be fulfilled within a reasonable time frame.”
From their retailers to their restaurants and gas stations, Denmark plans on becoming a completely digital nation, in terms of accepting payments.
Late last year, the Danish National Bank announced it would begin the process of discontinuing the internal printing of bills and minting of coins in 2016. According to Reuters, the main benefit of going cashless is, well, money — a cash transaction was estimated at 7.1 crowns ($0.92) versus 4.1 crowns for a card transaction .
Danske Bank reports that nearly 40% of the population already uses their MobilePay, which is a system that allows citizens to transfer money and make purchases in stores or online from their mobile devices.
The new Scandinavian law proposes that businesses would only be able to accept debit, credit cards and mobile payments, which may actually end up being more convenient for their consumers.
According to Norway’s central bank, Scandinavians only rely on cash for less than 6% of all payments. Considering the United States uses cash to make around 47% of their payments, the difference is drastic.
With plans to move forward into the coming 2016 year without their bills or coins, Denmark, as well as many other nations and economies, are sure to be heavily influenced by this law, even if it does not pass.