Why cash is king, and Digital ID will take away our freedom

1. People get left behind

Not everyone is on board with digital payments, and not everyone can be. Older folks, people with disabilities, some remote communities, and low-income Aussies often still rely on cash. Not everyone owns a smartphone or has reliable internet.

When we go fully cashless, we risk leaving these people out. That is not fair, and it is something we need to think hard about.

2. We are Giving Up Our Privacy

Every time you tap your card or transfer money, that data gets recorded. It is convenient, sure, but also means your buying habits, locations, and spending patterns are all being tracked by banks, apps, and sold to advertisers.

The last thing some people want is for government agencies to track what you are purchasing with your own money.

Even if you trust your bank, what happens if there is a data breach? Not everyone is comfortable with their financial life being so exposed.

3. Tech Can Fail

How many times this year has the system goes down? Six times this year bank have had technical difficulties, and people were unable to access their money. Suddenly, you cannot pay for the essentials you need.

We have had big outages before, EFTPOS networks dropping out across the country. In those moments, it is cash that saves the day. Having a backup is not old-fashioned, it is smart. I have walked into supermarkets where I was the only one holding cash after a system failure, so I was the only one ably to purchase goods.

4. Transaction Fees Can Sneak In

Using cards and apps might feel free, but there are often hidden fees. Businesses usually pay a small fee on every tap, and those fees can add up. Some shops pass the cost onto customers, meaning you might pay more than if you used cash.

Also, it is way too easy to fall into traps like buy-now-pay-later services. You do not feel the money leaving your hand, so it is easier to overspend or rack up debt.

5. Too Much Power in Too Few Hands

A fully cashless society puts a lot of trust in banks, card companies, and tech giants. They are the gatekeepers, and if something goes wrong, like your account being frozen or a system being hacked, you could be locked out of your money with no quick fix.

There have been rumours of everything you do being controlled when you are use digital ID, in countries like China, tens of thousands are homeless because their social credit score is low, this restricts people's access to their finances, and soon they lose their home after not being able to make payments or rent.

6. It is Harder to Budget

There is something about using physical cash that helps people stay on budget. You can literally see it disappearing from your wallet, which makes you think twice before spending.

With cards or phones, it is easy to lose track. A few taps here and there, and suddenly you have spent $200 in a weekend without noticing.