The Axa Research Fund has published an in-depth analysis of societal resilience. The publication highlights that three decades of economic growth and technological innovation have contributed to reducing extreme poverty and increasing literacy. This has, however, been achieved to the detriment of the environment and has come with growing social and economic inequality. Academic and institutional experts offer a holistic view of the most salient topics in the fields of inclusion and societal resilience, including gender inequality, climate changeThis is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More, health systems… One paper focuses on the social role of moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More in an age of digitalization.
Tristan Dissaux, economist and researcher in socioeconomics and financial innovations [and member of the CashEssentials’ Steering Committee], explains how the digitalisation of money comes with a high social cost despite undeniable gains in terms of convenience and efficiency.
“Monetary systems are not just technical in nature, but vital tools of social cohesion, creating a “community of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More”. They embody shared values, legitimacy, and societal trust. Their functionality is vital for societal resilience.”
Dissaux argues that as the digitalisation of money accelerates, it becomes urgent to act now to address these drawbacks and preserve the social role of money.
“It needs to be recognized that digitization has grown because it makes sense in cost and efficiency terms for the private financial sector to move away from cash.” says Dissaux. This, however, has led to the erosion of the cash infrastructure itself, which has nudged individuals away from cash. “Therefore, to preserve cash for those who need it, cash needs to be recognized as a public good akin to a public utility. This requires the commitment of the state.” concludes Dissaux.