The advantages of a cashless policy that are often overlooked.

Global Economy

The advantages of a cashless policy that are often overlooked.

0. The cashless policy should render stolen money useless if it is implemented as planned. And so far, it is working. The politicians and public servants who swindled public funds are the only ones in trouble, as we have observed them to be extremely agitated and furious. This is one of the most important aspects of the cashless policy. In 2016, Narendra Modi of India carried out the same action, and the outcomes were remarkable.

1. The Struggle to Predictability: Criminals and terrorists will no longer be able to extort money from anyone if the cashless policy is implemented as planned. It goes without saying that millions of dollars can't be taken out to pay ransoms. Drug and weapon sales will also be restricted by this policy. It is simple to follow and keep an eye on any transaction that is carried out by bad people.

2. Defeating corruption and bribery: Bribery will not be possible if the cashless policy is implemented as planned. When there is a lack of resources, corruption will have less effect. thereby encouraging people to follow the law.

3. GDP expansion: If the cashless policy is implemented as planned, experts have predicted that it will increase Nigeria's GDP. In Nigeria, cashless transactions currently exceed 45%, or approximately N39 trillion. Nigeria will be able to achieve its goal of a sustainable economy and surpass many other nations as a result of this.

4. Stop inflation: The cashless policy's planned reduction in money circulation will result in lower prices. Things are going well so far: In the last few weekdays, grain and livestock prices have decreased by 15 to 25 percent.

5. discipline with your spending: People will learn to spend less and control what they have if the cashless policy goes as planned. Nigerians lack discipline in their spending. Markets will be empty because people won't spend much right now, resulting in lower prices for goods.

6. If the cashless policy goes through as planned, it will strengthen the banking industry. If banks have money on hand, small businesses and startups will be able to get loans and advances, and the interest rate will naturally go down a lot; because banks do not currently have sufficient funds, which results in extremely high interest rates.

7. According to the BusinessDay Nigeria newspaper, it cost approximately N6 billion to distribute the new naira notes and N77.6 billion to print them. Currency notes can be expensive to print. Imagine how many hospitals, roads, schools, and other forms of infrastructure we would have if the funds were put to good use. Due to the high cost of making new notes, this nation loses billions of dollars each year. Consequently, e-banking can be utilized more easily and for less money than printing billions of dollars' worth of paper currency.

8. In 2021, I remembered fighting tax evasion in a restaurant. I asked the Nigerian-based Indian businessman why he chose Nigeria over all other countries. "In India, the tax makes me poor, but rich people don't pay taxes in Nigeria," he stated. This is so disappointing. According to the FIRS, only 30% of Nigerian businesses pay taxes. Tax evasion is a serious offense that can result in punishment in Nigeria. If 80% of our businesses pay taxes, Nigeria will stop taking loans from other nations, and taxpayers will now be more concerned when government employees steal money. As a result, Nigerians will gain awareness and a sense of responsibility. It is dangerous to refuse to pay taxes because doing so puts Nigeria's future growth in jeopardy.

9. Information and data mining: If the cashless policy goes as planned, the government will be able to collect information about individuals and businesses. This will greatly benefit the provision of useful statistics and budgets. This will allow the government to track and monitor suspicious financial activities, such as money laundering, which is more important.