Why should we pay cash everywhere with banknotes instead of a card ?
You have a $50 banknote in your pocket. Go to a restaurant and pay for dinner with it.
The restaurant owner then uses the bill to pay for laundry. The laundry owner then uses the bill to pay the barber.
The barber will then use the bill for shopping.
After an unlimited number of payments, it will still remain a $50 bill, which has fulfilled its purpose to everyone who used it for payment.
However if Iyou pay for your meal digitally at the restaurant then the bank fees on the card for your payment transaction charged to the seller are 3%, so around $1.50 so will the fee of $1.50 for each further payment transaction or owner re laundry or payments of the owner of the laundry shop, or payments of the barber etc..... Therefore, after 30 transactions, the initial $50 will remain only $5 and the remaining $45 became the property of the bank thanks to all digital transactions and fees......the rich get richer and the poor get the picture.
You have a $50 banknote in your pocket. Go to a restaurant and pay for dinner with it.
The restaurant owner then uses the bill to pay for laundry. The laundry owner then uses the bill to pay the barber.
The barber will then use the bill for shopping.
After an unlimited number of payments, it will still remain a $50 bill, which has fulfilled its purpose to everyone who used it for payment.
However if Iyou pay for your meal digitally at the restaurant then the bank fees on the card for your payment transaction charged to the seller are 3%, so around $1.50 so will the fee of $1.50 for each further payment transaction or owner re laundry or payments of the owner of the laundry shop, or payments of the barber etc..... Therefore, after 30 transactions, the initial $50 will remain only $5 and the remaining $45 became the property of the bank thanks to all digital transactions and fees......the rich get richer and the poor get the picture.
