Anyone born before Google became a household word is scratching his head over the news that one day in the not too distant future; cash will no longer be accepted. Cash was always the sure bet, but it appears this may change soon to the surprise and dismay of many.

Israel on Sunday, 11 Tishrei 5774, at the weekly cabinet meeting will discuss joining a number of other countries looking to change over to digital currency. Not that cash currency will be eliminated, but it will be limited to a specified ceiling. All transaction above the set amount will be conducted digitally. A main reason for the proposed change is to limit and control money laundering. If large sums of cash are no longer acceptable, the incentive to accept payment off the books will decline dramatically. Cash payments may also be eliminated in certain areas, albeit not involving significant sums of money.

Acting at the behest of Prime Minister Binyamin Netanyahu, PMO Director-General Harel Locker has drafted the proposal to present to cabinet members, a proposal the prime minister feels will be a major step in the direction of stopping tax evasion and other money laundering activities. Simply stated, if money transactions leave a digital trail, one will have a more difficult time covering up illegal activities.

With the rapid growth of the smartphone market, the now household device is likely to soon serve as the hardware to host digital payments. Credit card companies, banks, PayPal and others have already developed smartphone apps, and in Israel there are already paid services permitting one to accept credit card payments with a smartphone.

It is too early to know how far the government will take the digital payment plan, but some favor eliminating cash as much as possible. That means payment in stores, buses, trains and other daily expenses will be made via smartphone, eliminating the use of cash. There is also a voice calling for offering incentives for stores and businesses that encourage the use of credit cards.

Many countries have already taken steps to permit monitoring cash transactions. This is true in the USA for sums over $10,000, over 15,000 € in the EU, and 10,000 NIS in Israel. Proponents points out that eliminating cash would deliver a major blow to terrorist funding, a major selling point for Western nations.

In the EU, officials a weighing lowering the ceiling amount from 15,000 € to 7,500 € as thoughts of a digital currency become increasingly popular.

(YWN – Israel Desk, Jerusalem)