Connect with us

Hi, what are you looking for?

Financial Source ReportFinancial Source Report

Editor's Pick

The Government Doesn’t Want You Using Cash

Nicholas Anthony

In the Wall Street Journal, I had a letter to the editor published on June 26 regarding the rise of electronic payments and the fall of cash.

In the article I responded to, Oyin Adedoyin pointed out that businesses have been moving away from cash for a variety of reasons. For example, tapping a card can be much faster than counting out change. Likewise, not having to store large sums of cash on‐​site can reduce the risks of theft (both internal and external). However, as I pointed out in my letter, it’s also worth noting how much the government itself discourages cash use.

For its part, the Internal Revenue Service goes to great lengths to avoid accepting cash. Elsewhere, the law requires citizens to report one another when making cash payments over $10,000. Failure to comply can result in a $25,000 fine or five years in prison. Then there is the Bank Secrecy Act regime to contend with—a regime that broadly labels businesses as “financial institutions” and requires them to report transactions as well.

The list goes on, but the point is simple: cash is becoming less common for many reasons, but we shouldn’t lose sight that some of those reasons are decisions made by the government itself.

You May Also Like

Editor's Pick

“Caius Gracchus” Babeuf came to Paris in 1790 and imbibed the revolutionary atmosphere. Five years later, he founded the secret Conspiracy of the Equals.

Tech News

Image: FromSoftware Playing Erdtree was a lesson in humility I needed. Continue reading…

Tech News

I can’t afford an actual house in this hellish economy, so a virtual one will have to do. | Image: Snap Snapchat Plus subscribers...

Tech News

Photo by Getty Images Car dealerships hamstrung by outages following two cyberattacks against CDK Global in June might finally be able to use their...

Copyright © 2023 FinancialSourceReport.com All Rights Reserved.