Australian politician Tracey Roberts has warned about the potential dangers of a cashless society. As the first-term federal member for Pearce in Western Australia, Roberts highlighted the rapid transition to a world without physical cash and the impact it would have on communities. She raised concerns about the loss of familiar activities such as the tooth fairy, tipping, piggy banks, and car boot sales. Additionally, Roberts emphasized the issues with privacy, security, higher costs, and the negative impact on small businesses in a cashless society.
Roberts further expressed concerns that a cashless society would lead to excessive spending as people are not limited by the physical money they possess. Furthermore, digital payment systems often come with transaction fees that disproportionately affect low-income individuals. She also emphasized the impact on small businesses, especially those in remote areas or on the outskirts of metropolitan areas, who may struggle to accept digital payments and subsequently lose customers. This could lead to the closure of small businesses and job losses in local communities.
Within her electorate of Pearce, Roberts noted the limited availability of financial institutions and ATMs, urging banks to take the concerns of residents seriously. She stressed the need for financial institutions to consider the consequences of branch closures and reduced ATMs on the people they serve. Pensioners, local businesses, and community and sporting clubs have reached out to Roberts to express their concerns about the impact of physical bank closures.
Despite the concerns raised, other federal colleagues in Parliament have been pushing for a digital transition. The Treasurer, Jim Chalmers, recently unveiled draft legislation to update the Payment Systems (Regulation) Act 1998 to allow the Reserve Bank of Australia to regulate new emerging payments, including digital wallets and Buy Now, Pay Later providers. The government’s aim is to modernize Australia’s payment system, but Roberts and concerned residents are highlighting the potential negative consequences of such a move.
Overall, Roberts is advocating for a balanced approach where cashless options coexist with traditional forms of payment. She argues that access to financial institutions should be maintained, and concerns about privacy, security, higher costs, and the impact on small businesses should be taken into account. The government’s proposed legislation is currently open for submissions until November 1.