The Danish government said today that it wants to allow gas stations, clothing stores, and restaurants the option to stop taking cash payments, a move that could accelerate a huge shift toward credit, debit, and alternative payment systems.
The measure is part of a larger set of 50 proposals (in Danish) from Denmark’s ministry of finance that aim to make it easier to do business in the country and boost economic growth.
Currently, Danish companies are required to accept cash payments, which “involve considerable administrative and financial burdens,” the finance minister, Bjarne Corydon, said.
For instance, he said retailers spend a fair amount of resources on security guards and surveillance systems, as well as spending the time to make change for customers. Grocery stores, dentists, doctors, post offices, hospitals, and nursing homes are among the establishments that would be excluded from the proposed rule.
If the change is implemented, it could mean that retailers, restaurants and gas stations would be able to turn away customers who don’t have access to electronic payments as early as Jan. 2016.
The idea is that transaction costs, […]
Denmark is politically a very liberal country and as such, I imagine their big bank regulations are somewhat stronger than ours. With the current fees and annual rising fee schedules for banks in the US, banks that are not exactly supportive of the middle class or low income families and individuals, I suspect the burden would shift radically from the merchants to individual citizens. That could change with more enlightened compassionate governance in America. Not that I’m throwing up my hands and saying it’s impossible… the question is when?
Also, over the last few months, I’ve had conversations with MS internet & mobile sales people who have informed me that there’s not enough preparation for damage infrastructure wise in the government and public sectors for the period we’re about to face due to climate change… longer and more extended rolling blackouts (think of flash floods, flash migrations across borders; state and national). Am wondering if Denmark has emergency money systems set up.
I realize there’s a growing number of small towns, ie thriving communities, who have their own communications systems set up which is in step with the growing number of independent small town energy utility centers. Something I strongly support.
Concurrently, the shareable systems are growing and some liberal American towns have created their own currency exchanges modeled after similar exchanges begun in Europe decades ago. And there are online groups of small businesses (mainly run by millenials) that do swaps of services – no cards, no cash involved. An age group I look to as the visionaries of our time.