There’s never ending BS about money. Now the idea is that eliminating cash will eliminate recessions. The reasoning is full of holes of course.
Governments would really like to do away with cash money. They use the excuse that it’ll eliminate crime. Frankly, I think the biggest economic crimes have already happened with electronic money. The derivative market has gotten so big that there isn’t enough paper in the world to print the money.
What governments want is to be able to tax every transaction. They can’t stand the idea that Bill the painter can paint your living room and give you a discount for paying in cash.
Lets imagine that governments are successful and all official money is electronic. My guess is that there’d soon be a very busy black market operating with silver and gold. No doubt there’d be people willing, for a fee, to launder that metal money into electronic. Don’t tell me it can’t be done. The incentive to do so huge.
Imagine if people get used to electronic money. Who’s to say they have to go through a central government sanctioned bank? What’s to stop people from developing “open source” money, sorta the Linux of money. Get a large enough group of people exchanging “Linux” money for goods and services, and most of a person’s transactions can take place in the unofficial currency. In fact, it wouldn’t be too hard for the open source money to be more reliable than the government money. All the new money people would be concerned with is having a good useful and stable product, unlike the government that has incentive for inflation and political shenanigans.
Then there are all those people who are already deep into barter and gift economies. Electronic money will just give them more incentive to expand barter and gift exchanges.
Electronic money? Bring it on. It’s just the incentive we need to kill fiat money.