abolishing cash/banknotes?

[Simo]

On Sat, 2014-01-25 at 23:09 +0100, Daniel Pocock wrote:
> 
> On 25/01/14 21:13, David Gerard wrote:
> > ZeroHedge is the NaturalNews of economic blogging. They have predicted
> > 200 of the last 1 recessions.
> 
> Hence my opening comment that it is not really about a bank run, despite
> the hype
> 
> > The HSBC cash restriction is about pressure from the government after
> > HSBC was busted blatantly money-laundering for drug cartels. The
> > restriction does not apply to non-cash transactions. Despite
> > scaremongering from foolish people.
> > 
> 
> That, too, is what I commented - getting more people to pay by
> electronic means (making cash/anonymity appear shameful) seems to be the
> objective

It is more complex and at the same time, I believe, simpler, than that.

Cash is inconvenient for banks, it is hard/expensive to move around, can
be easily stolen, and requires costly procedures to handle.

In contrast numbers on a computer can be easily double checked, cannot
be stolen from a branch office as easily and can be transferred easily
between banks and customers.

So, although, I do not deny there are those that really like the idea of
tracking people, I think it is mostly due to cost-cutting.

You can certainly use prepaid, anonymous, credit cards, and the banks
would be as happy.

Simo.