Is the Eurozone an optimal area to suppress cash? An analysis of financial inclusion and the use of cash
DOI:
https://doi.org/10.32826/cude.v43i121.107Keywords:
Blockchain, Cryptocurrency, Eurozone, Financial Inclusion, Cash, Global FindexAbstract
In recent years blockchain technology is revolutionizing the current international payment system. This paper argues that the gradual substitution of cash in the Eurozone for a cryptocurrency based on blockchain technology, could lead to great microeconomic and macroeconomic advantages. However, to carry out a political decision of this magnitude, it is necessary to ensure that all agents will have the necessary means to carry out their transactions. Therefore, this paper analyzes the financial inclusion and use of cash in the Eurozone - using microdata from the Global Findex survey of the World Bank - in order to discern whether a proposal to substitute cash for virtual money would be timely or advisable. The descriptive and econometric results show a lower financial inclusion and a greater use of cash in the Eurozone than in monetary areas of similar level of development, although there is great heterogeneity among countries. Likewise, it is observed that the probability of using cash is greater for individuals with lower income and education levels. Based on the results, it is concluded that the possible proposals that advocate the total elimination of cash in the Eurozone should be carried out gradually and with strong public support to the sectors of the population with lower levels of income and education.
Downloads
Published
Issue
Section
License
Those authors who have publications with this journal accept the following terms:
- The authors will retain their copyright and guarantee the journal the right of first publication of their work, which will be simultaneously subject to the Creative Commons Recognition License that allows third parties to share the work whenever its author is indicated and its first publication is this magazine.
- Authors may adopt other non-exclusive licensing agreements for the distribution of the published work (eg, deposit it in an institutional telematic file or publish it in a monographic volume) whenever the initial publication is indicated in this magazine.
- Authors are allowed and advised to disseminate their work through the Internet (eg in institutional telematic files or on their website) before and during the submission process, which can produce interesting exchanges and increase the citations of the published work. (See The effect of open access ).
