The case against cash is clear — expensive to print, difficult to track, prone to theft and an enabler of corruption. Western economies, notably the Nordic countries, have come to depend less and less on cash for transactions.
In the UK, cash is used for only 30% of transactions while South Korea plans to phase out cash. Singapore too plans to reduce cash usage by supporting digital payments. In China, super app WeChat derives about half its revenue from digital payments.
In India, the demonetization of 86% of the currency notes in circulation in 2016 accelerated the shift to digital payment modes. Yet, cash continues to account for over 90% of transactions, according to the RBI. But usage of digital money is increasing in India.