In recent times there has been a steady increase in the number of citizens employing their cellphone apps to make payments for things. This uptrend has been observed due to the ease of making payments and not having to carry cash around.
On one hand, this development is good for the people as long gone will be the days of having to carry bulky wallets and having to stay attentive of the cash people are carrying. Moreover, it removes the headache of carrying exact change in case a transaction is to be made as using apps can help in tranferring the exact amount due. It is also easier to keep track of all your transactions, as it is stored and recorded on an online database, making it simpler for a person to track their expenses and plan out there finances.
On the other hand, this practise can have some serious repecursions as these cellphone apps charge a nominal fee for such transactions which the government can start regulating with the rise in popularity. On top of that, a digital wallet is rendered useless if the device runs out of charge, and if the person is not carrying physical currency, can lead to trouble in unforeseen circumstances in the long run.
In conclusion, the bottom line is, ruling out physical currency is something only the naive will prefer. In my opinion, the increase in the number of users of cellphone apps is a necessary step but has it’s own drawbacks as all the transactions are recorded and can be further monitored by the government affecting the tax planning of an individual.