Going Cashless: How Does it Help Ethiopia’s Economy?
A cashless economy can modernize a developing economy by reducing corruption and organized crime and ensuring equitable societal growth. But what about its drawbacks?
Amole, M-Birr, Hello-cash, Telebirr, and many more; these names indicate the steps Ethiopia is taking to wean its economy off of cash. Despite being one of the largest in the continent, Ethiopia’s economy is still heavily dependent on cash. Such dependency has presented various problems in Ethiopia’s economy. The government seems to understand this, as it is taking bold steps to integrate digital systems into daily transactions. In fact, recently, the government announced that all fuel transactions in the capital would be conducted through electronic payment methods. Actions like these show that the government strongly urges people to move away from cash.
In a cashless economy, transactions are completed digitally rather than with actual money. Currently, there aren’t any entirely cashless economies. However, developed countries like Norway are getting close. In developing economies like Ethiopia, a cashless economy offers numerous advantages and can modernize its economy. So, what are these advantages?