The physical form of currency – cash is something which has its own special charm for everyone, right? Though this asset class is often subject to a lot of risks such as theft, inflation, damage etc., it is cash that helps us all in times of need.
In periods of uncertainty such as stock market downfall or sudden unemployment or social occurrences like riots and curfews, it is cash which helps us tide over the tough times.
The situation the economy is facing today is quite similar. There is a lockdown, there is a curfew, there is an economic slowdown and the root cause of this entire thing is highly contagious virus.
You must have heard that China destroyed thousands of bank notes and many others were sanitized and disinfected to eliminate the spread of the virus, which clearly means, that even your trusted currency- in the form of cash - might not be the best payment mode today.
The World Health Organization (WHO) also has released a statement in early March, urging people to avoid handling cash for the risk of spreading the disease.
The Federal Reserve in USA has started quarantine of bank notes! Bank notes are quarantined before recirculation, because there are chances that the notes can have the virus which may have landed on it, if it was ever held by a person who was diagnosed with Covid-19.
There are many retail outlets which are supporting the WHO, and have totally stopped dealing in cash.
So is cash is out of option, what should you do?
Thankfully, we have a ton of cashless options available with us which have efficiently taken place of hard cash. With the evolution of contact less payment methods like digital wallets, contact less cards and others, it makes no sense to use cash and help the infection spread.
Necessity Over Convenience
Everyone has a limited amount of money in the form of hard cash. Though we live in a time where almost all the vendors accept electronic payments and plastic money, it is very important to have some amount of cash with you and maintain liquidity.
Considering the economic state, it is recommended to spend only on essentials, and use contact less payments wherever possible. The new virus is so contagious that even handling over your card to the cashier can help in the spread. The pandemic has forced the countries to use digital payment methods. They are not only convenient but are also very safe.
Benefits To The Economy
A country like India spends around 1.7% of its GDP which is nearly around $ 210 billion on printing, storing and distribution of currency notes. The global economies have faced a loss of over $ 1 trillion due to the Coronavirus.
In such a condition, digital payments will provide financial aid to the country, because a greater number in digital payments will led to a lesser requirement of cash, thus saving huge cost.
Switching to Digital payments is very easy and convenient. You no longer need to take the risk of stepping out of your home in the lockdown, to withdraw cash from your bank or ATM. This again increases your safety, because public places like banks and ATMS are visited by many people on a daily basis and can be contaminated with the virus.
Using digital payments is seamless. You no longer require exact change, and retailers and service providers have various lucrative offers on digital payments which can be beneficial for you.
To sum it up, it is better to opt for digital and contact less payments in the lockdown. It not only keeps you safe from the contagious virus but also helps you in maintaining liquidity which is very important considering the current economic state across all the sectors.
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