by Millie P » Fri Jan 29, 2010 04:04:17 AM
I'd argue that people are actually at more of a risk with electronic payment than cash. Card cloning is a lot worse than anyone is willing to admit. That isn't surprising given that pretty much anyone with a decent knowledge of computers and $300 can build a cloner. With the new iPhone device for processing transactions it is about to become even easier.
The elimination of paper currency has been a long term goal for most governments. The idea is that it reduces crime by making transactions traceable and that it would reduce tax evasion but I don't believe it will. At least three quarters non-street walking prostitution already accepts credit cards and there some drug dealers that have started. Sports betting has mostly gone offshore and they accept credit cards. If anything I'd say electronic payments actually benefit non-street level criminal activity by introducing international inter-jurisdictional issues. There would be a temporary decrease in counterfeiting but it would be short lived. The government is always slower than criminals and that becomes more so when it involves technology.
The only real benefits of not having money would be the cost of maintaining the actual notes but given how inefficient the public service is that would be insignificant and likely replaced by an even more useless department that would ineffectively monitor the new electronic currency.