Gen Z’s Banking Nightmare: Cashless Future Could Mean Powerless Dystopia

As I peer into my wallet, only a worn five-dollar bill remains. This bill is a remnant from a past vacation abroad that I consistently forget to exchange at the bank. Oddly, it has become the sole piece of physical currency I habitually carry, especially since opportunities to use actual cash in the UK are dwindling.

For a long time, our local pub only accepted cash, possibly as a quirky strategy to keep it a local haunt. I also keep some coins in my car for supermarket trolleys. However, these days, using cash often seems slightly odd or even somewhat suspicious. More and more, cafes and bars are opting for a cash-free operation, avoiding the inconvenience of transporting their earnings to a distant bank branch. A survey from Link, the ATM network, reveals that half of us have recently encountered places that either refuse cash or strongly prefer other methods of payment. But with most of the population having shifted to card payments, is this really an issue?

The Hidden Impact on Vulnerable Groups

A recent report from the House of Commons Treasury select committee points out that it’s the vulnerable sections of society who still rely on cash. This includes older individuals wary of online scams, those with poor credit who cannot open bank accounts, and adults with learning disabilities who find it easier to manage physical money. Additionally, there are cases like that of a woman who needed cash to circumvent her abusive partner’s control over their finances, as he had interfered with electronic payments for their children’s school meals.

When Digital Fails, Cash Prevails

Moreover, recent events in Spain, which suffered a severe power outage, have shown that while cash may not be predominant, it remains an essential backup. Sweden had to reconsider its move towards a cashless society, fearing vulnerabilities to sabotage and other security threats.

The Broader Cultural Resistance to Going Cashless

There’s also a broader, somewhat reluctant hesitation towards a fully digital economy. In the U.S., concerns about a government that could potentially track or freeze digital funds for political reasons make cash seem like a safer bet. This worry unites a diverse group: traditionalists skeptical of change, conspiracy theorists worried about global elites, small business owners burdened with bank fees on transactions, and anti-poverty advocates who emphasize the necessity of cash for budgeting.

Interestingly, even Generation Z, who are theoretically more accustomed to digital transactions, have embraced the “cash stuffing” trend. This involves withdrawing a set amount of cash for the week and allocating it into envelopes for different expenses. Once an envelope is empty, that’s it for spending in that category. This method has gained popularity on social media platforms like TikTok and Instagram, where followers are captivated by videos of neatly organized cash. This trend speaks to a desire for control and order, echoing older practices like saving money in a biscuit tin. However, just as those tins could attract thieves, so too could cash stuffing at home.

The Banks’ Perspective

Naturally, banks would prefer a shift to a cashless society, which would simplify their operations and reduce the need for physical branches. This would allow them to move fully digital, leaving customers to rely on call centers or chatbots for service—a cheaper alternative than staffing physical locations.

But considering the past few decades, my trust in the banks’ intentions isn’t strong. Therefore, I plan to keep holding onto my increasingly redundant stash of cash for the foreseeable future.

• Gaby Hinsliff is a Guardian columnist

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