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Should Cash Disappear?

As You Read, Think About: How would your life change if we no longer used paper money or coins?

If fans want to buy a hot dog at a Dallas Cowboys game, they shouldn’t bother pulling out dollar bills or coins. The team’s stadium accepts only credit cards, debit cards, or payments from apps on smartphones. In fact, no stadium in the National Football League still accepts cash. This is part of a growing trend in the U.S. to ditch the dollar.

Many consumers like the convenience of being able to buy just about anything with a card or apps like Apple Pay or Google Pay. Some people prefer not having to handle cash, which studies have found to be covered with germs. Also, for the millions of Americans who shop online, paying with cash isn’t even an option. 

But many people think cash is still king. They say using it can keep customers from overspending because they can see how much money they have left after a purchase. They also point out that not everyone has a credit card or access to digital payment options. 

That’s one big reason the U.S. has not yet gone cashless. States including New Jersey and Massachusetts have made it illegal for most businesses to refuse payments in physical currency. A similar law passed in 2020 made it illegal for most stores in New York City to go cash-free. 

Is it time to get rid of cash?

praetorianphoto/Getty Images

“Do you have cash in your wallet right now?”

Professor Eswar Prasad often asks his students at Cornell University that question. Usually, no one answers yes. Prasad isn’t surprised, since the number of people who use cash has dipped in recent years. 

“The switch from cash to digital payments has had advantages,” he says.

For one thing, paying with a mobile app or card is easier for many consumers. They don’t need to constantly go to an ATM to take out money or carry around clunky coins. 

About 41 percent of Americans don’t use cash in a typical week.

Source: Pew Research Center

Using an app or card can also make checkout lines move faster. Shoppers and cashiers don’t have to count out bills and change.

Plus, making bills and coins is expensive. This year, the U.S. government set aside more than 

$930 million to produce new currency. Many people argue that the money could be used in better ways.

“I think within the next 5 to 10 years, we will not see much cash in use,” Prasad says.

SDI Productions/Getty Images

Many experts say there’s no need to empty your piggy bank just yet. Going cash-free isn’t possible for people who don’t have access to the right technology. To use most cash-sharing apps in stores, you need a smartphone. But about 15 percent of adults in the U.S. don’t have one. 

Payment apps and debit cards must also be linked to a bank account—something millions of American families don’t have. 

Nearly 6 million American households don’t have a bank account.

Source: Federal Deposit Insurance Corporation

Going cashless can end up costing customers. Credit card companies and payment apps charge businesses fees for every purchase. In turn, many stores raise prices to make up for those fees.

Cash makes the most sense for kids too. Think about buying something at a school book fair or from an ice-cream truck. Parents are more likely to hand over a $5 bill than a card or their smartphone. 

Kenneth Rogoff, a professor at Harvard University, says it’s best for consumers to have different payment options.

“There’s just no reason to get rid of cash completely,” he says.

1. What does the author mean when she writes that “many people think cash is still king”?

2. According to the article, what are the main arguments for getting rid of cash?

3. Why does the article say that going cash-free can actually cost consumers money?

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