We live in a time where traditional monetary systems and safeguards are being replaced by increasingly digital ones. Cash is becoming less accessible, and the role of central banks, particularly the Bank of Ghana, is becoming more contentious as they face pressure to maintain control over interest rates to manage inflation.
On the other hand, businesses, especially small traders, worry that escalating borrowing charges may cause short-term hardships that threaten their survival. Meanwhile, the push towards a cashless society has sparked fears that a centralized monetary regime controlled by governments and big financial institutions can limit individuals’ purchasing power, potentially leading to a dystopia where political authorities decide what goods and services people have access to. This article explores the perils of a cashless society, echoing Friedrich Hayek’s assertion that it is ideas that drive human action rather than weapons. It studies the harmful consequences of a system stripped of physical currency, including denial of purchasing power, infringement on personal autonomy, and susceptibility to totalitarian control. The significant role of banking institutions in shaping economic realities is also examined.
By allowing banks to control who has access to credit and the terms on which loans are granted, it becomes eminently clear that this immense power needs to be vetted and regulated. The inevitability of economic crashes in the current system, highlighted by historical events like the Great Depression, underscores the need for systemic reforms that ensure economic stability and safeguard individual rights and liberties.
