Microsoft Word - ECCU Creative Youth Competition Essay KAH

discussions of a cashless society being implemented, there should also be a discussion geared towards if this happens will this make the Eastern Caribbean Currency less stable or more stable and also the opportunities and the challenges that may arise. There are many different opportunities that may arise due to a society being cashless. According to Lin, Melissa. “Is a Cashless Society the New Reality?” Toptal Engineering Blog , www.toptal.com/finance/market-research-analysts/cashless-society-new-reality; “Cashless economy pros includes: reduced tax evasion, less crime and corruption, savings on costs of cash, and accelerated modernization of citizens.” This is because physical cash can be anonymous and untraceable, allowing it to play a large role in crime, including bribery, tax evasion and counterfeiting. However, cashless payments leave behind records that can be traced. Technologies such as voice and face-recognition, can be inbuilt to payment technologies and transactions, therefore having the potential to become more secure than ever because payments can also be protected by end-to-end encryption and fraud-preventing technology. In addition, a related approach recently explored in a speech by the Deputy Governor of the Bank of England, Ben Broadbent, brought about the idea that Central Banks should consider adopting their own digital currencies. This would provide the Eastern Caribbean Central Bank an edge, since the Central Bank issues paper money, there may be a case for it to also issue digital currencies. This would have the effect of enabling Central Banks to provide directly through settlement technology the verification and recording of transfers, therefore making the Eastern Caribbean starting off as being cashless.

But with these opportunities, challenges may arise; therefore, the Eastern Caribbean

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