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Debate,

Should We Get Rid of Paper Money?

Cash seems to be on its way out. Is that a good thing?

By Mackenzie Carro

From the March/April 2021 Issue

Lexile: 600L-700L, 800L-900L

Guided Reading Level: U

Featured Skill: Main Idea and Supporting Details,

Here’s a riddle: I was invented more than 1,000 years ago. I can be germier than a toilet seat. At least two countries are trying to get rid of me forever.

What am I? Paper money!

For hundreds of years, people have bought stuff with paper money and coins. (That’s also known as cash.) But now we have technology. It’s possible to get almost anything without ever touching a dollar, quarter, or nickel. We can shop online and in stores with credit cards. We can use debit cards. We can use apps on our phones.

“Within 10 years, cash will seem old-fashioned,” says Susan Crawford, a technology expert.

Already, businesses like Amazon, Shake Shack, and Starbucks are trying out going cash-free. Sweden and South Korea are getting rid of bills and coins.

But is there a cost to giving up cash?

Here’s a riddle: I was invented more than 1,000 years ago. I can be germier than a toilet seat. At least two countries are trying to get rid of me forever.

What am I? Paper money!

“Within 10 years, cash will seem old-fashioned,” says Susan Crawford, a technology expert.

Already, businesses like Amazon, Shake Shack, and Starbucks are trying out going cash-free. Sweden and South Korea are getting rid of bills and coins.

But is there a cost to giving up cash?

Mira este acertijo: me inventaron hace más de 1,000 años. Puedo tener más gérmenes que el asiento de un inodoro. Al menos dos países están tratando de deshacerse de mí para siempre.

¿Quién soy? ¡El papel moneda!

Durante cientos de años, la gente ha comprado cosas con papel moneda y monedas. (también conocido como dinero en efectivo). Pero ahora tenemos la tecnología. Es posible obtener casi cualquier cosa sin siquiera tocar un dólar, una moneda de veinticinco o un centavo. Podemos comprar en línea y en tiendas con tarjetas de crédito. Podemos utilizar tarjetas de débito. Podemos usar aplicaciones en nuestros teléfonos.

“Dentro de 10 años, el efectivo parecerá haber pasado de moda”, dice Susan Crawford, experta en tecnología.

Empresas como Amazon, Shake Shack y Starbucks están intentando no usar más el dinero en efectivo. Suecia y Corea del Sur se están deshaciendo de los billetes y las monedas.

Pero, ¿hay algún costo por renunciar al dinero en efectivo?

Why Bother?

¿Por qué preocuparse?

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Paper money was invented in China in the seventh century. Before then, if you wanted to buy something, you had to lug around heavy gold coins or something to trade—like a fur pelt or a few chickens. Now all you needed were a few lightweight slips of paper that you could conveniently tuck in a pocket.

Today, however, cash can seem like a hassle. Why bother counting out bills and coins when you could buy that burrito with the tap of a finger? No wonder nearly half of Americans would rather use apps than cash.*

Besides, cash is kind of gross. A 2017 study found that bills are crawling with hundreds of different kinds of germs. Do we really want that in our bags and pockets?

And producing money takes a lot of, well, money. Right now, about 45 billion bills are in use in the U.S. Over time, they get damaged and must be replaced. Last year, the U.S. set aside nearly $900 million for printing new bills. That’s almost enough money to buy a meal for every homeless person in America every day for a year.

Paper money was invented in China in the seventh century. Before then, buying something was hard work. You had to lug around heavy gold coins–or trade something, like a piece of fur or a few chickens. Using a few lightweight slips of paper that you could tuck in a pocket was much easier.

But today, cash can seem like a hassle. Why bother counting out bills and coins? You could buy a burrito with the tap of a finger! No wonder nearly half of Americans would rather use apps than cash.*

Besides, cash is kind of gross. A 2017 study found hundreds of different kinds of germs on bills. Do we really want that in our bags and pockets?

And creating money takes a lot of, well, money. Right now, about 45 billion bills are in use in the U.S. Over time, they get damaged. They must be replaced. Last year, the U.S. set aside nearly $900 million for printing new bills. That’s almost enough to buy a meal for every homeless person in America every day for a year.

El papel moneda se inventó en China en el siglo VII. Antes de eso, si querías comprar algo, tenías que cargar con monedas de oro pesadas o algo para intercambiar, como una piel de animal o algunas gallinas. Ahora, todo lo que necesitabas eran unas cuantas tiras livianas de papel que podías guardar cómodamente en un bolsillo.

Hoy, sin embargo, el dinero en efectivo puede parecer una molestia. ¿Por qué molestarse en contar billetes y monedas cuando podrías comprar ese burrito con el simple toque de un dedo? No es de extrañar que casi la mitad de los estadounidenses prefieran usar aplicaciones que dinero en efectivo.

Además, el dinero en efectivo es bastante asqueroso. Un estudio de 2017 encontró que los billetes están plagados de cientos de diferentes tipos de gérmenes. ¿Realmente queremos eso en nuestros bolsos y bolsillos?

Y producir dinero requiere mucho, ejem, dinero. En este momento, hay alrededor de 45 mil millones de billetes en circulación en los EE. UU. Con el tiempo, se dañan y hay que reemplazarlos. El año pasado, EE. UU. reservó casi $900 millones para imprimir billetes nuevos. Ese dinero sería casi suficiente para comprarle una comida a todas las persona sin hogar en los EE. UU. todos los días, durante un año.

Risky and Expensive

Arriesgado y caro

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But you might not want to toss out your piggy bank just yet. First of all, getting rid of cash could make things more expensive. Each time you buy something with an app or a credit card, stores get charged a fee. To make up for that fee, they often raise their prices.

What’s more, without cash, we’d have to rely entirely on technology to pay for things. What if a storm knocks out the power for days? We’d have no way to buy what we need.

Another problem: About 7.4 million Americans use only cash and don’t have bank accounts. (One reason is that some banks charge fees if you don’t keep a minimum amount of money in your account. Not everyone can afford that.) And nearly 20 percent of adults don’t own a smartphone. What would they do if cash were no longer an option?

So what do you think: Should we keep cash, or is it time to say goodbye to bills and coins?

But wait! Don’t toss out your piggy bank just yet. First of all, getting rid of cash could make things cost more. Let’s say you buy something with an app or a credit card. Stores get charged a fee. To make up for that fee, they often raise their prices.

And without cash, we’d have to rely entirely on technology to pay for things. What if a storm knocks out the power? We’d have no way to buy what we need.

Another problem: About 7.4 million Americans use only cash. They don’t have bank accounts. And nearly 20 percent of adults don’t own a smartphone. What would they do if cash were no longer a choice?

So what do you think: Should we keep cash? Or is it time to say goodbye to bills and coins?

Pero es posible que todavía no quieras deshacerte de tu alcancía. En primer lugar, si nos libramos del dinero en efectivo las cosas podrían ponerse más caras. Cada vez que compras algo con una aplicación o una tarjeta de crédito, las tiendas deben pagar una tarifa. Para compensar esa tarifa, a menudo aumentan los precios.

Es más, sin efectivo, tendríamos que depender completamente de la tecnología para pagar las cosas. ¿Qué pasaría si una tormenta nos deja sin electricidad durante días? No tendríamos forma de comprar lo que necesitamos.

Otro problema: aproximadamente 7.4 millones de estadounidenses solo usan dinero en efectivo y no tienen cuentas bancarias. (Una razón es que algunos bancos cobran cargos si no mantienes una cantidad mínima de dinero en tu cuenta. No todos pueden costearse eso). Y casi el 20 por ciento de los adultos no tiene un teléfono inteligente. ¿Qué harían si el dinero en efectivo ya no fuera una opción?

Entonces, ¿qué piensas? ¿Deberíamos seguir usando el dinero en efectivo o es hora de decirle adiós a los billetes y a las monedas? ν