Is Paper Money Going To Become Obsolete?
Sunday, June 7th, 2015 -- 10:14 AM
(CNN) - Could the United States go cashless one day?That's what some are asking after one European country says it hopes to remove all paper and coin currency from retail transactions. Denmark recently announced that it is wants its restaurants, gas stations, and retailers to go cashless.
Under this new proposed law, which would go into effect in January, businesses would be allowed to ban all cash transactions. Instead, they would accept credit cards and debit cards, as well as newer technologies like mobile pay services.
So could this work in the U.S.? Probably not, because Americans use cash at a much higher rate than other European countries. A 2012 survey of nearly 2,500 consumers showed that 40 percent of transactions in the U.S. involve cash. Compare that to other countries like Scandinavia, for instance, where cash is used less than six percent of the time. You can see why the U.S. has a long way to go.
In Denmark, this law wouldn't apply everywhere. Services deemed essential, such as hospitals and pharmacies, would still be required to take cash.
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