By RARZACK OLAEGBE
They called you the king. Everywhere you go, they bow at your feet. The last time you went on AWOL, the country was on steroids. Your opponent, what is its name again? E-payment. Yes, she could not withstand the frenzy. She was overwhelmed. There was commotion. Everywhere. When you emerged finally from your hiatus, there was a sigh of relief.
In the open market, you are still the preferred one. At the supermarket, the teller holds you in high esteem. The shoppers who embraced you got prompt service. The tellers are thrilled to see you. At the gas station, you own the station. At the nightclub, you are the beat of the club. At the border towns, ah, you are the alpha and the omega. You rule their world. In the commercial bus, without you there is no commute. At the mom-and-pop stores, you are the solution provider. At the owambe party, you are the soul of the party. At the PoS merchant point, you are a god!
On the one hand
Be careful. Your existence is under threat. There is a gang up to cut you to size. Reduce your territory. Take over your command. Water your influence. Make you a persona non grata. They want to keep you at bay. Make you irrelevant. For instance, when was the last time anyone made a cash payment at the gas station?
On the other hand
Writing in Brookings.edu, Eswar Prasad, Senior Fellow, Global Economy and Development, explained that some people still prefer to use cash. That is because they like the tactile nature of physical currency. Because it provides confidentiality in transactions. But e-payment, made with the swipe of a card or a few taps on a smartphone, has become a threat.
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In the long term
Media reports have shown that many central banks are experimenting with digital versions of their currencies. This is to make their currencies relevant. These currencies are virtual. Like Bitcoin. But unlike Bitcoin, which is a private enterprise, they are issued by the state and function much like traditional currencies. Do you remember e-Naira by the Central Bank of Nigeria (CBN)?
Tell the fellow that cash will find a way where there is no way. After all, it is a matter of cash.
The central banks have introduced these digital currencies in limited circulation. The currencies exist alongside cash as another monetary option. This idea is to help the banks broaden their circulation over time. Gain popularity. Push cash away. Therefore, if you were cash, how would you handle e-payment threats?
Research has shown that China, Japan, and Sweden have launched digital currency. Ditto the Bank of England. European Central Bank. The Bahamas has already rolled out the world’s first official digital currency. Do you think the end of cash is on the horizon? Listen, Mr Cash, nobody can push you out. There will be threats. Yes, you will overcome.
Do you know why? Some countries will not roll out digital currency. I eavesdropped a fellow saying cash is vulnerable to loss and theft. That digital currency is relatively secure. Remind the fellow of electronic hacking. Another fellow shouted that digital currency benefits the poor and the unbanked. Prompt the fellow that the unbanked love cash, not card. The fellow said digital currency would slow illegal activities of money laundering and terrorism financing. Tell the fellow that cash will find a way where there is no way. After all, it is a matter of cash.
In the short term
The end of cash is on the horizon. Another fellow punched the air. How can you quiet this loud fellow? Send huge cash. The fellow will feast at your table. You are the king.
*Olaegbe (psalmsonolaegbe@gmail.com)
