Cashless Society incoming?

Gary Neal
The Polis
Published in
3 min readDec 18, 2023

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Central Bank Digital Currencies

Someone counting out banknotes in their hands
Photo by Alexander Grey on Unsplash

The Bank of England is exploring a UK Central Bank Digital Currency (CBDC). It will be used by households and businesses for everyday payments and would exist alongside cash and bank deposits. It would be a digital representation of the pound and would be backed by the Bank of England, much like physical money is today. This will be different to cryptocurrencies, which are issued privately and are extremely volatile. A £10 digital will be the same value as a £10 banknote.

The growth of online banking and mobile apps has made digital payments easier and quicker. This growth was helped by the 2020 Covid-19 pandemic. According to the Statista website, in 2022, 86% of point of sale payments in the UK were made electronically, debit cards, credit cards and digital wallets. 10% of the payments were in cash. Contrast this with Europe as a whole and according to the European Central Bank (ECB) 59% of point of sale transactions used cash, mainly for small value payments. Card payments stand at 34%. In both cases, cashless payments were rising.

In the UK bank branches are being closed at a rapid rate, more so in rural areas as more people turn to online financial transactions

Advantages of CBDCs

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Gary Neal
The Polis

Retired taxi driver, creative writer, experimental poet, computer enthusiast, web design and learning to program