What was the issue?
State bank of India started promoting cash less transactions.
What is digitized economy?
- Digital economy refers to an economy that is based on digital computing technologies.
- The digital economy is also sometimes called the Internet Economy.
- Increasingly, the "digital economy" is intertwined with the traditional economy making a clear delineation harder.
What are the advantages of digital economy?
- Transactions are digital, no need of safe guarding physical currencies.
- Time saving and faster means of exchange.
- The government able to track any transaction.
- There is increasing tax revenue.
- Dealing with criminal transactions is easier.
What are the issues with digital economy?
- Physical cash often offers the easiest and cheapest way to deal in many low-value transactions.
- It make no economic sense for small businesses to build the infrastructure required for digital payments
- Cash less economy would threaten the stability of the banking system.
- Cash acts as a natural check on inflationary government policies.
Source: The Hindu
