In an anonymous article, the uthor demands the eradication of cash in order to provide central banks and governments more power. This article was published in The Financial Times.
This article was published under the title The case for retiring another ‘barbarous relic’. People are stockpiling cash because they believe that another economic collapse is about to take place.
The author believes that if cash is abolished, it would allow the government to more easily lift taxes directly from people’s bank accounts and eliminate informal economy.
The author is more for the existence of electronic reserves than for the existence of bank notes. This article mentions an argument made by Kenneth Rogoff. This former chief economist of the International Monetary Fund wanted to eliminate €100 and €500 bank notes.
Rogoff discussed issue of eliminating cash in London earlier this year with the representatives of the Federal Reserve, the ECB, the Swiss and Danish central banks. The idea of banning cash was also discussed at a Bilderberg Group meeting.
The purpose of banning cash is to put an end to tax evasion and illegal activity and stop people from withdrawing money when interest rates are close to zero.
According to economist Jim Leaviss, the society without cash would spend only by electronic means. Such accounts would exist in a bank which is held, monitored and run by government.
In case such scenario did happen, society would increase its demand for physical gold and silver.
Such a course of actions would demand a ban on those too.