Towards a cashless society | Columnist

  • Oct, Sat, 2024


The Prime Minister recently outlined a vision to transform Trinidad and Tobago into a cashless society, where transactions occur digitally—through cards, mobile apps, and other electronic means.

Nations like Norway and China have already minimised cash use, achieving improvements in both economic efficiency and security. Trinidad and Tobago seeks to mirror this model, but the transition requires cautious management, particularly in a society where many institutions still rely on manual “copybook page” processes. As Mighty Sparrow poignantly sang in his calypso, “Capitalism Gone Mad”: “The rich get richer still, the poor get poorer still”—reminding us that such reforms, if mishandled, could deepen inequality.

A primary advantage of moving towards a cashless society is crime reduction, a pressing issue in Trinidad and Tobago. The anonymity of cash enables criminal activities, but cashless systems have reduced crime rates in places like Sweden and the United Kingdom. In Sweden, for example, fewer people carry cash, making them less appealing targets for theft.

Furthermore, digital transactions leave a trace, making it harder for criminals to disguise illegal activities. After India’s 2016 demonetisation, digital transactions surged, aiding in reducing crime and corruption through improved financial tracking. Trinidad and Tobago could benefit from similar measures, though Sparrow’s warning reminds us to ensure reforms address root issues to avoid exacerbating inequality.

During a recent trip to China, my younger brother witnessed the extent of cashless adoption first-hand. He noted that even some homeless individuals displayed barcodes, allowing passers-by to make digital donations. This striking example highlighted how deeply embedded cashless systems are in some societies.

Yet, we must be cautious of “putting the cart before the horse”. A cashless society demands thorough planning and robust support systems. For instance, some view the recent move by the Trinidad and Tobago Police Service (TTPS) to revert to colonial-style uniforms as a distraction from urgent concerns, such as crime rates, officer morale, and resource limitations. Addressing deeper issues rather than surface-level changes is essential.

Similarly, the transition to a cashless society requires investments in infrastructure, digital banking awareness, and technology access. Neglecting these foundational elements could foster a culture where “the rich get richer and the poor get poorer,” both financially and educationally.

Such societal shifts, especially those that affect all citizens, demand order and foresight. A cashless system impacts everyone, from tech-savvy business owners to the elderly who may struggle with digital tools. Moving too quickly without strengthening internet access, digital literacy, and financial inclusion could marginalise the vulnerable. Rapid changes without sufficient support can displace individuals, inciting resistance and unrest. As Sparrow’s calypso reminds us, ignoring systemic effects on all levels of society can exacerbate inequities. This applies not only to cashless transitions but to all major reforms.

Consider again the police, who are frequently blamed for the nation’s crime issues. As in the proverb “Peter paying for all,” officers bear the burden of systemic failings that overlook the root causes of crime. In this context, they are Peter. Unlike the push to remove colonial imagery from national symbols, the TTPS uniform change is merely a cosmetic shift backwards. Real issues, such as a lack of resources, training, and mental health support, remain unaddressed. Similarly, pushing for a cashless society without equipping citizens with the necessary tools risks creating new problems, leaving average citizens—especially those less familiar with technology or banking—bearing the costs; it risks, as the saying goes, “spinning top in mud”.

Moreover, policies that primarily benefit certain groups while overlooking others can foster societal divides. The shift to digital payments must consider those who may face challenges, including the elderly and individuals without smartphones or reliable internet. If the government fails to include everyone, it risks exacerbating economic disparities. True progress is inclusive and considers the needs of all citizens. Otherwise, the benefits of digital transitions may only reach the privileged few, echoing Sparrow’s warning: “The rich get richer still, the poor get poorer still.”

In conclusion, Trinidad and Tobago stands to reduce crime and bolster its economy by moving toward a cashless society. However, this transition must be orderly. Countries like Sweden and China show that success lies in measured implementation, not hasty decisions. By focusing on infrastructure, education, and inclusivity, Trinidad and Tobago can ensure this shift benefits all citizens. Otherwise, there is a risk that disparities between rich and poor will only deepen, keeping genuine progress out of reach for many—a situation Mighty Sparrow’s classic “Capitalism Gone Mad” cautions against.

—Scarlet Benois-Selman is an educator, author, and advocate for equity.





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