There are a number of countries around the world that have done away with cash altogether. While there are a few benefits to this, there are also some major drawbacks.
Let’s take a look at some of the pros and cons of a cashless society. There are a few countries around the world that have been experimenting with going cashless, but so far no country has completely eliminated cash.
Sweden is often cited as an example of a country moving towards a cashless future, but even there, cash is still used in about 40% of all transactions according to a recent study.
There are a number of reasons why countries might want to move away from cash. For one thing, it can be expensive and time-consuming to print and distribute physical currency.
Additionally, cash is often used in illegal activities such as drug trafficking or money laundering, so getting rid of it could make it harder for criminals to operate.
And finally, going digital could allow for more efficient payments systems and help reduce fraud.
So far, no country has been able to fully eliminate cash, but it will be interesting to see if any do so in the coming years.
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Which Countries Have No Cash?
While there are many countries around the world that have adopted cashless societies, there are still some holdouts.
Here are a few countries where you can’t use cash:
1. Sweden:
In Sweden, it’s estimated that only about 15% of all transactions are conducted using cash. The country has been moving towards a cashless society for years and even launched a pilot program in 2015 that allowed people to make bus fare payments using their cell phones.
2. Denmark:
Denmark is another European country where cash is rapidly falling out of favor. In fact, Copenhagen’s public transportation system stopped accepting cash payments back in 2016.
And, like Sweden, the Danish government is also considering eliminating the nation’s smallest denomination coin (the 1-krone coin).
3. Norway:
Cash usage is also on the decline in Norway with less than 20% of transactions being conducted in paper money or coins according to a recent study.
The Norwegian government has also been working on making it easier for people to use electronic payment methods like debit and credit cards as well as mobile apps for making payments.
4. China:
China is one of the world’s leading economies and it’s also embracing a cashless future. Alipay and WeChat Pay dominate the Chinese mobile payment landscape with over 1 billion active users between them.
And these days, it’s not uncommon to see people paying for everything from street food to taxis using their smartphones instead of cash.
5. Belgium:
Belgium is another European country where using cash isn’t as common as it once was due largely to the rise of contactless payments .
Which Country is the Most Cashless?
There is no definitive answer to this question as it largely depends on individual definition and criteria.
However, if we look at the percentage of cashless transactions in relation to all transactions carried out within a country, then Sweden would be considered the most cashless.
In 2016, only 13% of all payments were made in cash in Sweden and this figure is expected to drop to just 6% by 2020.
This compares to around 80% of payments being made in cash in the United States. One of the main reasons for Sweden’s high level of cashlessness is due to the widespread use of ‘swish’, a mobile phone app that allows users to make instant peer-to-peer payments.
This has become hugely popular in recent years, with over half of Sweden’s population now using the app.
Other factors include the development of contactless payment systems and the increasing use of online banking and mobile apps for making payments.
Does China Not Use Cash?
In China, cash is still used in many transactions, but it is not the only form of payment. Other options include bank cards, mobile payments, and e-commerce.
Cash is still commonly used for small purchases, such as food or transportation. However, for larger purchases, such as housing or cars, bank cards and mobile payments are becoming more popular.
E-commerce is also growing in popularity in China. Alibaba’s online marketplaces, Taobao and Tmall, account for over 60% of all online retail sales in the country.
And while cash on delivery is still the most popular payment method on these platforms, other options like Alipay are gaining ground.
So while cash is still an important part of the Chinese economy, it is no longer the only form of payment. And as e-commerce continues to grow, we may see even less use of cash in the future.
Which Country Does Not Need Money?
There is no country in the world that does not need money. All countries need some form of currency to function properly. Even so-called “communist” countries like China and Cuba use money.
The only way a country could theoretically function without money would be if it had enough resources to barter with other countries or if everyone in the country agreed to work for free.
However, both of these scenarios are highly unlikely and impractical. Therefore, it is safe to say that no country in the world does not need money.
Will Digital Payments Replace Cash In The U.S?
Countries That Don’T Use Paper Money
There are a handful of countries around the world that don’t use paper money as their primary form of currency.
Instead, these nations rely on coins, barter, or even credit and debit cards to conduct transactions.
Let’s take a look at five countries where you won’t find any paper money in circulation.
1. Canada
The Canadian dollar is primarily coin-based, with notes only accounting for about 2% of all currency in circulation. Coins are denominated in 5-cent, 10-cent, 25-cent, $1, and $2 increments.
You’ll also find plastic “notes” in $5 and $10 denominations which are technically called polymer banknotes.
2. Switzerland
The Swiss franc is also mostly coin-based, with notes only making up about 8% of all currency in circulation.
Coins come in 5 rappen (cent), 10 rappen, 20 rappen, 50 rappen (half franc), 1 franc, 2 francs denominations; while banknotes are available in values of 10 francs all the way up to 1,000 francs.
3. Singapore
The Singapore dollar has been transitioning to a more “cashless society” in recent years and as such coins now make up a minority of the country’s currency (accounting for just over 30%).
Notes remain popular though and are available in denominations of 2 dollars all the way up to 1000 dollars.
You may also see special commemorative notes from time-to-time like those issued for the country’s 50th anniversary celebration back in 2015.
4. Monaco
One interesting thing about Monaco is that it actually has two official currencies: the Euro and its own local Monaco Monetary Unit (Monegasque Franc).
However, very few Monegasque Franc coins remain circulating as most have been phased out since Monaco adopted the Euro back in 2001. Banknotes can be found in values ranging from 5 Euros up to 500 Euros.
There are also special collector’s edition banknotes which feature Monte Carlo on one side and various landmarks or important figures on the other. These include Princess Grace Kelly, Prince Ranier III, and Saint Nicholas Cathedral, among others.
5. Hong Kong
Like Singapore, Hong Kong has also been moving towards a cashless society with an increasing reliance on electronic payments via Octopus card or mobile apps like WeChat Pay or Alipay.
As such, coins now account for less than 20% of all currency circulating within Hong Kong with most transactions being done via banknote.
Denominations for Hong Kong banknotes start at HK$10 and go all the way up to HK$1000 .
Countries That Only Use Cash
There are a number of countries that only use cash as a means of exchange. These countries include but are not limited to: Afghanistan, Cambodia, Ecuador, Haiti, Indonesia, Iraq, Laos, Myanmar (Burma), Nicaragua, North Korea, and Zimbabwe.
Each of these countries has its own unique reasons for using cash as the primary form of currency. In Afghanistan, cash is used due to the instability of the banking system.
The banks in Afghanistan are not able to hold onto money deposited by customers due to the volatile security situation in the country.
This makes it difficult for people to trust banks with their money and so they instead keep their savings in cash.
Cambodia also uses cash as its primary currency due to the instability of its banking system. In addition, many people in Cambodia do not have formal identification documents which makes it difficult for them to open bank accounts.
As a result, most people in Cambodia prefer to keep their money in cash rather than deposit it into a bank account.
Ecuador switched from using the US dollar to its own currency, the Sucre, in 2000. However, after just a few years (in 2009), Ecuador re-adopted the US dollar as its official currency due to high inflation rates and instability within Ecuador’s economy.
Many businesses and individuals still prefer to transact in US dollars rather than Sucres which has led to a increase in demand for USD bills resulting in a shortage of smaller denominations ($1 and $5 bills).
To try and alleviate this problem, the Ecuadorean government has started printing larger denomination bills ($20 and $50) which can be broken down into smaller amounts when necessary.
Haiti predominantly uses Haitian gourdes but US dollars are also widely accepted throughout Haiti.
After the 2010 earthquake, there was an influx of US dollars into Haiti as relief aid poured into the country.
This caused inflationary pressure on prices leading the Haitian government to print more gourdes which further exacerbated inflationary pressures.
As a result, many Haitians started hoarding US dollars instead of spending them which has ledto shortagesof smaller denomination bills ($1 and $5).
To try and alleviate this problem, the Haitian government instituted a policy where US dollars that are brought into Haiti have to be exchanged for gourds at a fixed rate for they can be spent.
Top Cashless Countries 2022
In a world where going cashless is becoming more and more popular, which countries are leading the way? A recent study by Mastercard found that these are the top 10 cashless countries in the world, based on the number of card payments per capita.
1. Sweden
With nearly 50% of all retail transactions being made with cards, Sweden is far and away the most cashless country in the world. In fact, many stores and restaurants there have stopped accepting cash altogether.
2. Denmark
Cash is used for just 21% of retail transactions in Denmark, which is second only to Sweden in terms of cashlessness.
Like its Nordic neighbor, Denmark has also seen a significant increase in card usage over the past decade.
3. United Kingdom
The UK has been moving towards a cashless society for years now, with card payments accounting for 43% of all retail transactions.
London is particularly ahead of the curve, with contactless payments being used for nearly 60% of all transactions in the city.
4. Canada
Canada isn’t quite as far along as some other countries on this list when it comes to going cashless, but it’s certainly heading that way. Currently, about 30% of retail transactions in Canada are made with cards.
5. United States
The US lags behind much of the developed world when it comes to cashless payments, but things are slowly changing.
Currently, about 26%of retail transactions in America are made with cards (though this number jumps to nearly 40%in cities like San Francisco).
6 . Australia
In Australia, around 35% of all retail transactions shave been converted to card payments—a number that has been steadily increasing over the years.
And like other developed nations on this list, Australia is also seeing a rise in the use of mobile wallets and contactless payment options.
Least Cashless Countries
There are a number of countries around the world that are considered to be the least cashless. This means that these countries have very low rates of cashless payments, and most transactions are still done in cash.
Some of the least cashless countries include:
- Venezuela
- Argentina
- Peru
- Mexico
- Bolivia
In these countries, there are a number of reasons why cash is still king.
First, many people do not have access to banking services or credit cards. This means that they can only use cash for transactions.
Second, inflation rates in these countries are often high, which makes it difficult to save money.
Finally, crime rates are also generally high in these countries, making it dangerous to carry around large amounts of cash.
Conclusion
There are a few countries around the world that have done away with cash altogether. Instead, these countries use only electronic forms of payment, such as debit and credit cards, or mobile apps.
The reasons for this vary from country to country, but generally, it’s seen as a way to reduce crime and increase efficiency.
Some of the countries that have eliminated cash include Sweden, Denmark, Norway, and Belgium. In Sweden, for example, cash is used in less than 2% of all transactions. And in Denmark, some stores don’t even accept cash anymore.
So what do people in these countries use instead of cash? Debit and credit cards are the most common form of payment. But mobile apps like Apple Pay and Android Pay are also becoming more popular.
In fact, in Sweden, you can even pay for public transportation with your phone! Do you think we will ever see a world without cash?
