Cash is the first step of financial inclusion

Swedes are starting to worry about the risks of a cashless society - and they're starting to make their voices heard.

Modi's demonitisation has had dramatic consequences on the Indian economy in general, and on the poor in particular.

Contrary to what many have said, Kenneth Rogoff, the Havard Economist, is not cheering for a cashless society but rather for simply a less-cash one, his main argument being that it could potentially deter fraudsters and criminals.

Former Director of the Currency Department of the Bank of Israel, Mordechai Fein, analyses the growing debate in Israel about cash restrictions and the growing controversy linked to the closure of commercial banks.

Contrary to what is said, the push for cashlessness in Sweden is not "natural" and not demanded by consumers. There is a lot to gain from a cashless society for players of the payments landscape.

Cash might be a symbol of national sovereignty, but it goes beyond that. It's an important tool for social inclusion, for education and is essential for places struck by a crisis.

India's demonitisation last November has also affected small microfinance firms - directly impacting small industries, farmers and other unorganised sectors of the economy.

A 10-year study led by the Dutch UNU-Merit University researched the long-term effects of cash transfer programmes in developing countries. The preliminary findings praise the benefits of such programmes as vectors for improved nutrition and poverty reduction.

Going cashless has many hidden repercussions that we have not even started thinking about yet, as the example of the schoolchildren on British Airways.

The new ATMIA study on the role cash plays in financial inclusion “Access to Cash: the First Step toward Financial Inclusion” presents an international picture of the importance of cash and ATMs in reaching 2 billion financially excluded persons “As cash is the only form of payment devoid of any prerequisite conditions for access, efforts to liberate people from financial inclusion should, instead, encourage its use,” the paper states.

Unlike what Bill Gates claims, cash is much more cost-effective than poultry for poverty relief programs.

India is not ready to go cashless despite the government's push to do so. Infrastructure is not up-to-speed, a large portion of the population is either unbanked or illiterate or both and it's a luxury to have internet access at home in rural areas.