Get ready to say goodbye to paper money. The Bank of Canada recently unveiled new polymer bills, which will be rolled out across the denominations starting with the $100 bill late this year, with smaller denominations gradually being introduced. The new money has more security features, including clear parts and different holograms, so they're harder to counterfeit. They're also more durable overall, so they'll last longer.
This is, from a technical standpoint, a better kind of cash than what we're using right now. From an aesthetic standpoint, like current money, the design is a bit busy, but that's a natural side effect of piling security features on top of each other to make it impossible - or at least incredibly difficult - to counterfeit. As a way to pay for things, it's fine.
But, is it a lot of time and effort spent for nothing? I began to wonder this after a friend pointed out she hadn't actually carried cash for years. Personally, I rarely have much above a $20 in my wallet, for those rare occasions when a debit machine isn't available. It makes one wonder if the redesigned cash is going to be introduced into a cash-free society.
Already, consider how often you actually use cash to pay for things in your daily life. Groceries and other household goods can be paid with debit or credit cards, same deal with bills. Most of my bills are already paid online, so that's not a big deal either. Parking meters are moving away from change to a cell phone-based charging system in major cities, and phones might also be part of how we pay for private transactions as well.
Sure, right now, if I want to buy an outdoor lounge chair from a garage sale for $10 - and I do - I need to break out a $10 bill. But, will that be necessary in late 2013, when the new $10 are going to be rolled out? If new systems are implemented to pay people, through phones or some other new and exciting tech, I can't see those bills being very relevant to most people.
Sure, some people will argue that cash is more secure, and they are worried about the many security concerns surrounding strictly electronic payment. But no matter what, people will try to forcefully take the money of others. It's an unfortunate reality, and in some ways electronic money is more secure. There is safety in keeping track of all transfers.
Another argument against is that older generations are less willing to learn new systems. Perhaps, but I know many who have learned how to operate current cards, and as cruel as it sounds, they will gradually be disappearing as the system moves to something strictly electronic. Besides, those willing to change can often adapt to new systems more quickly than people might admit.
The last concern would be fees associated with purely electronic transfers. In businesses which run strictly on cash, the fees are the reason they give for the choice. If it becomes the only way to do business, it might be a case where they have no choice, but it might also cause fees to be regulated and reduced. It's a worry, but might work out in the end.
Still, change is inevitable, and at this rate change will be electronic rather than coins and bills. While the new money is the best we have so far, it could be the case where it arrives too late.
