Article No. 8

1 August, 2023


AUGUST 1, 2023

Cash vs. Cashless: 

The Struggle for Privacy in the Digital Age

In a world increasingly marked by digitalization and rapid technological advancements, the concept of a cashless society has moved from the realm of science fiction to a tangible possibility. While this transition presents several advantages such as improved convenience, speed, and efficiency, it also brings along significant challenges. Primarily, these challenges pertain to privacy, the potential monopolization of money by centralized entities, and the implications of total control over money. 

Advocating for Cash

Cash has been the lifeblood of economies for centuries, offering an easily accessible and universally understood medium of exchange. A key advantage of cash is its intrinsic privacy. Cash transactions leave no digital footprint and are anonymous by nature. This safeguards against surveillance capitalism, wherein entities could potentially use spending data for manipulative advertising, discriminatory pricing, or more malicious purposes. In a cashless society, every transaction you make would be tracked and logged, compromising your privacy.

Cash also plays a crucial role in the economy by providing financial inclusion. Not everyone has access to banking services or digital forms of payment. According to the World Bank, about 1.7 billion adults worldwide still remain unbanked, revealing a glaring digital divide. Removing cash could marginalize these populations further, exacerbating socio-economic disparities.

Advocating for a More Private Currency

As we move deeper into the digital age, the idea of private digital currencies has begun to gain traction. Cryptocurrencies like Bitcoin and Ethereum provide an example of what these currencies could look like. These offer a higher degree of privacy than conventional digital payments, mirroring some benefits of cash, while also offering the convenience and speed of digital transactions.

Private digital currencies operate on decentralized networks, reducing the risk of monopoly by a single entity. They offer anonymity and secure transactions, addressing the privacy concerns that arise in a cashless society. 

Privacy: A Fundamental Right

Privacy, often taken for granted, becomes increasingly precious in a cashless society. With every transaction logged, entities (either corporations or governments) could monitor an individual’s every purchase. This raises alarming questions about surveillance and the potential misuse of personal data.

In an era where data is the new oil, the right to privacy needs to be fiercely protected. Digital currencies need to be designed with privacy in mind, ensuring only necessary data is collected and that it is securely stored. Regulations need to be put in place to limit data collection and ensure transparency in how collected data is used.

Against Centralized Digital Currencies

Centralized digital currencies, such as proposed central bank digital currencies (CBDCs), while promising efficiency and modernization, bring along potential risks. A key concern is the centralization of power. With a centralized digital currency, the controlling entity, usually a governmental body, has full control over the currency. This could lead to unprecedented financial surveillance, with the potential for money to be “turned off” for individuals or groups at the discretion of the controlling body.


As we edge closer to the reality of a cashless society, it’s important to critically evaluate its implications. While digital transactions offer undeniable benefits, we must strive to preserve the privacy and autonomy offered by cash and private currencies. The potential monopolization and control inherent in centralized digital currencies raise significant concerns that must be addressed before proceeding on this path. In this era of technological revolution, striking the right balance between innovation and privacy, between convenience and control, becomes more crucial than ever before.