Cashless Transacting Economy: A Necessary Evil for Development! A Zimbabwean Scenario!
Dynamic Research Journals' Journal of Economics & Finance (DRJ-JEF), Vol. 2(4), pp. 01-10, April 2017
10 Pages Posted: 27 Apr 2017
Date Written: April 26, 2017
The need to make and receive payments lies at the heart of every business. It could be a customer purchasing goods or services or a company making payments to its suppliers or a bank account holder transacting with his or her bank. The emergence of advanced information technologies has brought economic agents closer; the world has just turned into a global business village. Apparently, Zimbabwe’s transition to a cashless society is an opportunity rather than a challenge; though it has been brought up by the works of the invisible hand to counter the cash crisis bedeviling the economy. This study mainly uncovers the implications of a cashless economy to Zimbabwe. The study made some policy recommendations that are envisaged to improve the operation of the cashless economy in Zimbabwe. Through financial literacy enhancement to sectors lagging behind and the general populace, the economy can be financially advanced and business transactions smoothened through increased usage of electronic payment systems. The study has also called for advanced audit techniques to be applied in monitoring electronic transactions and avoid possible fraud. Promoting a cashless economy and reaping full benefits, requires financial discipline from the Reserve Bank and other financial institutions where money creation is linked to reserves and productivity levels.
Keywords: Banks, Bank Charges, Cash Crisis, Cashless Economy, Cashless Society, Electronic Cash, Financial Innovation, Financial Literacy, Plastic Money, Zimbabwe
JEL Classification: E41, E42, E51, E52, E58, F36, F38, G01, G21, G33, 033, M15
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