The Massive Cashless Push Is On

Editor’s Note: Time has passed, but the heartbeat of this piece hasn’t changed. If anything, it’s stronger. Read it with intention…

Recently, the European Union officially passed legislation that reshapes financial freedom as we know it. Here is what some of these laws will entail.

As of March 2028, cash purchases over €10,000 would become illegal. By 2027:

• All European exchanges will require full KYC.
• No more self-hosted or anonymous crypto wallets.
• Any crypto transaction over €1,000 must be state-approved.
• Every transaction tracked, traced, and monitored.

By 2029, the Digital Euro (CBDC) is rolled out, with complete surveillance infrastructure already prepared. This is now written into European law.

Sweden is now closest to the cashless ideal. Cash is used in less than 15 percent of transactions in that country. The value of cash in circulation has declined significantly in the 21st century, now accounting for approximately 1 percent of GDP.

Swedish retailers and restaurants are permitted to refuse cash payments simply by posting a sign, and more than half of all Swedish bank branches no longer handle cash.

The transition away from cash to programmable money has already begun, and while most people are distracted by other happenings of the day, the majority remain unaware of what this means for their privacy, autonomy, and financial control.

Supporters of a cashless society argue that digital transactions are more convenient for both customers and businesses, and that going cashless would reduce many criminal activities. They believe the trend toward a cashless economy is unstoppable, given the increasing digitization of economies and consumers’ growing preference for conducting daily business on mobile devices.

However, this trend has also been pushed by banks that have intentionally made cash transactions less convenient for customers—by closing branches and removing ATMs—to encourage the use of digital services that are more profitable.

What is most troubling is the potential for serious breaches of privacy, because purchases and sales made with digital currency are not anonymous. Technological glitches could block access to funds, while systemic failures caused by natural disasters or large-scale hacking could make all purchases and payments impossible.

During an economic crisis threatening the solvency of major banks, depositors would be unable to rescue their money by withdrawing it in cash. Depositors would also be unable to prevent troubled banks from taking a portion of their deposits in “bail-in” scenarios, under which the institution’s shareholders and creditors—including depositors—are held responsible.

Presently in the U.S., up to $250,000 of each deposit is protected from such seizures. This would not happen with programmable currency.

Most importantly, ordinary depositors would not be able to protect themselves from negative interest rates, which central banks in some countries (such as Japan) have implemented to combat recession or deflation.

Canada is a leader in the cashless race, as revealed since 2024. Only 10 percent of transactions in Canada today are done using cash, according to Carlos Castiblanco, an economist with the group Option Consommateurs. “There is a need to protect cash right now before more merchants start refusing it,” Castiblanco said recently on a radio show.

It is critical to act now, he added, before retailers begin removing all the infrastructure required to store and maintain physical money. “They are already used to dealing with cash,” he said. “So this is the moment to act, before it becomes more complicated.”

Canadians have always had a love-hate relationship with cash. Here are some findings from a report by Payments Canada:

• 31 percent of Canadians use cash for day-to-day purchases.
• 49 percent believe Canadian stores will be completely cashless within the next 10 years.
• 52 percent feel concerned about the prospect of cashless stores.
• 26 percent of Canadians feel the need to wash their hands after handling cash.
• Canadians are divided on embracing digital currency: 36 percent find a digital dollar appealing, while 30 percent do not.
• Key motivators for using cash include speed (38 percent), wide acceptance (38 percent), and the ability to use one’s own funds rather than borrow (25 percent).
• 15 percent of Canadians use cash to make “under-the-table” payments.
• One in 10 Canadians feels more “spend guilt” when using cash.

Payments Canada also reported that while cash use has significantly declined over the last six years (2017–2022), there has been a 59 percent decrease in the volume of cash payments and a 41 percent decrease in the value of cash purchases.

Of the 87 percent of Canadians who still use cash, nearly one in three (31 percent) use it for day-to-day purchases, such as making small purchases, paying expenses, or paying friends or family members.

Nearly one in four (37 percent) use cash not only for day-to-day payments but also to hold onto it for emergencies. Older Canadians (55 years or older) are significantly more likely than other age groups to use cash in this multi-purpose way.

A further 32 percent of Canadians report mainly holding onto cash for emergencies but have stopped using it for day-to-day payments. New research suggests Canadians have no intention of ditching their physical wallets just yet.