Potential negative effects of a cashless society. Turning citizens into criminals and other economic dangers
| Pages | 350-358 |
| Date | 07 May 2019 |
| DOI | https://doi.org/10.1108/JMLC-04-2018-0035 |
| Published date | 07 May 2019 |
| Author | Joseph Wilfrido Rivera |
Potential negative effects of
a cashless society
Turning citizens into criminals and other
economic dangers
Joseph Wilfrido Rivera
Department of Criminology, Law and Society, University of Florida, Gainesville,
Florida, USA
Abstract
Purpose –In the past few years, several countrieshave begun to drastically change their economies to be
entirelycash free. The point of this policy change is to hopefully prevent the amountof crime that results from
the proliferationof cash. However, there are potential negativeconsequences to this policy change that receive
little to no attention and there are several misconceptions regarding the opportunistic nature and
resourcefulness of organized crime. As such, this paper aims to attempt to study thesepotentially negative
consequencesto provide some warning to countries adopting a cashlesseconomic policy.
Design/methodology/approach –This is a conceptual paper relying upon an understanding of the
literature in the fields of sociology, anthropology, psychology and criminology as applied to the topic of
money and economicpolicy.
Findings –This paper discusses numerous negative effects to adopting a cashless economic policy, to
include the proliferation of underground financing through the hawala system and organized criminal
channels, the increased use of Bitcoin, the more difficult task of tracking currency through bank reporting
requirements,and the potential effect of increasing other crimes, which are harderto track.
Research limitations/implications –This is an entirely conceptual paper. As such, it is not able to
state definitivelywhether the outcomes discussed will occur or to what extent it may occur.
Practical implications –This paper couldhelp to serve as a warning for governments wishing to adopt a
cashless economic policy, and it may encourage those countriesto hopefully develop safeguards to prevent
some of the potentiallynegative effects that might result.
Social implications –This paper expands upon the understandingof money and the various ways that
individuals may adapt or react culturally,psychologically or violently to changes in monetary policy or the
form of currencyitself.
Originality/value –There have been few if any paper discussingthe consequences of cashless economic
policies and its implications toward organizedcrime. This paper is unique in both the subject matter being
discussedand the conceptual arguments it puts forth.
Keywords Corruption, Money, Organized crime, Money laundering, Cashless
Paper type Conceptual paper
Introduction
A few years ago, at the ACJSconference in Orlando, FL, a professorwas discussing the topic
of money laundering and organized crime. While the main topic of the professor’s
presentation was interesting, the underlying policy rationale behind the professor’sstudy
was that, to decreasecrime, governmentsshould decrease the use and availability of money–
specifically referring to paper money –circulating through its economy.The argument made
sense to a point because there have been numerous incidents where individuals have been
targeted by criminal organizationsprimarily for carrying cash. Tothis, the professor’s point
JMLC
22,2
350
Journalof Money Laundering
Control
Vol.22 No. 2, 2019
pp. 350-358
© Emerald Publishing Limited
1368-5201
DOI 10.1108/JMLC-04-2018-0035
The current issue and full text archive of this journal is available on Emerald Insight at:
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