RT Journal Article
SR Electronic
T1 Is a Cashless Society Achievable?
JF The Journal of Investing
FD Institutional Investor Journals
SP joi.2019.1.079
DO 10.3905/joi.2019.1.079
A1 Kevin Rutter
A1 Morten Wilhelm Winther
YR 2019
UL https://pm-research.com/content/early/2019/03/05/joi.2019.1.079.abstract
AB Given increasing physical cash in circulation in many areas, a cashless society is likely not achievable soon for most countries. However, there are certain countries, particularly the Nordics, where the rise of digital payments is accompanied by a decrease in physical cash. While consumer preferences may drive towards a near-cashless society in these countries, a fully cashless society is not possible without first addressing several obstacles. First, a credible technical solution would need to exist as a substitute for physical cash, given the risks to consumers of strictly holding money with defaultable private sector institutions. Second, laws and regulations regarding the use of physical cash would have to change. We discuss high-level designs for how a retail-facing central bank-issued digital currency (CBDC) could be built on R3’s Corda and evaluate legal changes in Norway.