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In this 21stcentury, we have already entered into the era of post modernity and post

industrialism. Todays World is witnessing the unprecedented and unforeseen changes in

every walk of life, thereby presenting a scenario of chaotic and bizarre changes. Changes in

different sectors of society ranging from economy, society, politics, family and culture are so

multi-directional that at the surface level, it becomes very difficult to decipher a meaningful

and coherent picture from this jungle of changes. Sometimes this scenario leads one to

perceive World as a dehumanizing society. But such despair is unwarranted, for it is so more

because of its lack of proper management and proper knowledge about it. In fact the present

day post-industrial civilization of the world calls for a drasticparadigm-shift and a new

insight to bring out a meaningful and articulate picture of todays World. The present paper is

an effort in this direction.

Most people think of a cashless society as something that is way off in the distant

future. Unfortunately, that is simply not the case. The truth is that a cashless society is much

closer than most people would ever dare to imagine. To a large degree, the transition to a

cashless society is being done voluntarily. Today, only7 per centof all transactions in the

United States are done with cash, and most of those transactions involve very small amounts

of money. Just think about it for a moment. Where do you still use cash these days? If you

buy a burger or if you purchase something at a flea market you will still use cash, but for any

mid-size or large transaction the vast majority of people out there will use another form of

payment. Our financial system is dramatically changing, and cash is rapidly becoming a

thing of the past. We live in a digital world, and national governments and big banks are both

encouraging the move away from paper currency and coins. But what would a cashless

society mean for our future? Are there any dangers to such a system?

Those are very important questions, but most of the time both sides of the issue are notpresented in a balanced way in the mainstream media. Instead, most mainstream news

articles tend to trash cash and talk about how wonderful digital currency is. The rules of

global trade forbid countries from artificially boosting exports and curbing imports by

manipulating the exchange rates of their currencies. But for many reasons, policymakers have

been wary (more wary than presidential candidates, anyway) of pressing cases against abuses.

That reluctance may be coming to an end, however, as the global recession slouches on and

the shadow of chronic unemployment looms over industrialized economies. What explains

that traditional reluctance to pursue currency abuses? For one thing, more is typically at stake
http://www.washingtonpost.com/world/europe/high-tech-sweden-edges-closer-to-becoming-cashless-society/2012/03/17/gIQANtd2HS_story.htmlhttp://www.washingtonpost.com/world/europe/high-tech-sweden-edges-closer-to-becoming-cashless-society/2012/03/17/gIQANtd2HS_story.htmlhttp://www.washingtonpost.com/world/europe/high-tech-sweden-edges-closer-to-becoming-cashless-society/2012/03/17/gIQANtd2HS_story.htmlhttp://www.washingtonpost.com/world/europe/high-tech-sweden-edges-closer-to-becoming-cashless-society/2012/03/17/gIQANtd2HS_story.html


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in bilateral relations than commerce. For another, some groups in the losing countries

benefit from currency manipulationCountry As exporters unfair advantage translates into

lower prices for consumers and higher profits for retailers in Country B. Besides, economists

argue, currency manipulation may determine which industries flourish, but it should not have

much effect on the total number of unemployed in the long run. Last but not least,

policymakers sympathize with some motives for currency manipulationin particular, for

building nest eggs of foreign currency to protect against economic (and military) shocks and

for providing income for future generations when non-renewable resources are depleted.

However, the politics and economics of what is appropriately dubbed currency aggression

have been changing. Jobs do not seem to come back as quickly in the wake of economic

downturnsand when they do come back; they leave a trail of economic and social

dislocation. As the biggest nonaggression, the United States is plainly suffering. I estimate

that in 2011, currency aggression cost Americans more than two million jobs.

The more civilized, refined, analytical and scientific, that man became, the more refined,

sophisticated, systematic and symbolic, became the form of currency. All that a primitive

man needed was a hunting knife to satisfy his varied wants. Now that tool has progressed andevolved into the modern-day credit card, with which a man can buy anything he needs. The

process of evolution continues into the future with currency changing as the times change.

The present world economic scenario strongly requires the development of alternate modes of

currency as a medium of exchange which can match the fast paced, computerized economy.

The future is thus in the use of handheld, electronic 'Cash Pads' which will replace paper

currency for many day-to-day transactions. Carefully developed electronic pads can control

the happenings of fake currency, any many other type of fraud. It will also have the properties

of better durability and dependability than paper cash. It can become true legal tender with

almost no chances of black income. Practically every type of financial corruption can be

avoided. Through this system, a monitoring body can have full control on the flow of

currency (i.e., every deal can be accounted for). Electronic currency will certainly prove to be

a scientific & technically competent mode of exchange. THE ELECTRONIC CURRENCY

PAD: Electronic currency system can be operated through electronic currency pad to be

issued to every citizen of the country. Electronic currency pad will be a small handy

electronic instrument. This will have besides "on button", buttons from A to Z, Buttons from


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0 to 9, payment button, bank payment button, receipt button, bank receipt button, search

button and balance button with simple calculation buttons. These pads will have password

operating system. Each pad will be assigned a unique code number for identification. These

pads will also have screen, speaker, input-output sockets and a cord. ELECTRONIC

CURRENCY PAD Electronic Currency will function on the principle that every deal/

transaction affects two sides, i.e., one is receipt other is payment (one is receiver another is

'giver', payment maker). This means that when one person is receiving from another, it

implies that that another related person is paying.

This is how the transaction will take place. Electronic Currency Pads will be fed, through

Internet by banks, into their memory transaction codes issued exclusively for that particular

pad along with all transaction codes issued to any electronic currency pad with in that

country. These transaction codes will be computer generated which will come to be known

only at the time of transaction. In this system, every financial transaction will be accounted

and reconciled leaving no scope for unaccounted money i.e. black money


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References-

Website -

http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf Theeconomiccollapseblog.com/archives/a-cashless-society-may-be-closer-than-most-

people-would-ever-dare-to-imagine

Books-

BUTTON, Keith (2011), Virtual Currencies, Real Potential, American Banker, 1November.

CASTRONOVA, Edward (2002), On virtual economies, CESifo Working PaperSeries, No 752

CHAPMAN, Stephen (2011),Bitcoin: A guide to the futureof currency, ZDNet, 15 June.

CHU, Ping (2008),Virtual currency: regulation and taxationissues, November.
http://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdfhttp://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdfhttp://www.ecb.europa.eu/pub/pdf/other/virtualcurrencyschemes201210en.pdf

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