Cashless payments benefit the economy and can play a decisive role in stimulating economic development - NBM
This was stated by the National Bank of Moldova in its information materials, which it distributes in partnership with the Independent Analytical Center Expert-Grup as part of the National Campaign for Financial Education of Citizens, informing them on various topics in the financial sector. In its new publication on the topic "Why the World is Moving Towards an Economy with Less Cash", the National Bank noted that cashless payments can increase the velocity of money, which indicates how many times, on average, money is transferred between different holders. Thus, if money flows faster, this means that more financial transactions take place, which contributes to economic growth. Cashless transactions are also necessary for the development of e-commerce. They allow online businesses to accept payments from customers around the world. As a result, new markets and business opportunities can be opened, stimulating economic development. In addition, as the NBM points out, cashless payments mean a reduction in the informal economy and an increase in revenues to the state budget. Cash transactions are difficult to track and tax. In fact, cash leaves no trace of its origin. However, by their very nature, cashless payments have an element of increased transparency. The trail left by each electronic transaction makes it more difficult to fail to declare income and, as a result, to evade taxes. Thus, the transition to an economy based more on banking transactions helps to reduce the informal economy and leads to an increase in revenue collected in the national public budget. Cashless payments can also be an effective tool in the fight against corruption. For example, each additional interaction between economic agents and government agencies in the case of paying taxes or certain government services can increase the risk of giving and receiving a bribe. The use of electronic payments and reduced contact with the human factor help to reduce this risk. Cashless payments also help in the fight against money laundering. Most illegal income (from drug trafficking, fraud, bribery, etc.) is usually kept in cash. The commingling of illicit funds with proceeds from cash businesses is a commonly used money laundering scheme. The criminal uses a legitimate cash-based business to explain the origin of funds that are, in fact, the result of crime. The transition to a less cash-based economy can help combat this phenomenon. In addition, cashless transactions can help reduce unfair competition. On the one hand, they can increase the transparency of transactions and make it easier to identify unfair practices and report income. On the other hand, they prevent money from illicit sources from entering the financial system.// 22.10.2024 — InfoMarket.
