Think about the last time you used cash. How much did you spend? What did you buy, and from whom? Was it a one-time thing, or was it something you buy regularly?

Was it legal?

If you'd rather keep all that to yourself, you're in luck. The person in the store (or on the street corner) may remember your face, but as long as you didn't reveal anyidentifying information, there is nothing that links you to the transaction.

This is a feature of physical cash that payment cards and apps do not have: freedom. Called "bearer instruments," banknotes and coins are presumed to be owned by whoever holdsthem. We can use them to transact with another person without a third party getting in the way. Companies cannot build advertising profiles or credit ratings out of our data, andgovernments cannot track our spending or our movements. And while a credit card can be declined and a check mislaid, handing over money works every time, instantly.

We shouldn't take this freedom for granted. Much of our commerce now happens online. It relies on banks and financial technology companies to serve as middlemen.Transactions are going digital in the physical world, too: electronic payment tools, from debit cards to Apple Pay to Alipay, are increasingly replacing cash. While notes andcoins remain popular in many countries, including the US, Japan, and Germany, in others they are nearing obsolescence.

This trend has civil liberties groups worried. Without cash, there is "no chance for the kind of dignity-preserving privacy that undergirds an open society," writes JerryBrito, executive director of Coin Center, a policy advocacy group based in Washington, DC. In a recent report, Brito contends that we must "develop and foster electroniccash" that is as private as physical cash and doesn't require permission to use.

The central question is who will develop and control the electronic payment systems of the future. Most of the existing ones, like Alipay, Zelle, PayPal, Venmo, and Kenya'sM-Pesa, are run by private firms. Afraid of leaving payments solely in their hands, many governments are looking to develop some sort of electronic stand-in for notes and coins.Meanwhile, advocates of stateless, ownerless cryptocurrencies like Bitcoin say they're the only solution as surveillance-proof as cash-but can they be feasible at largescales?

We tend to take it for granted that new technologies work better than old ones-safer, faster, more accurate, more efficient, more convenient. Purists may extol the virtues ofvinyl records, but nobody can dispute that a digital music collection is easier to carry and sounds almost exactly as good. Cash is a paradox-a technology thousands of years oldthat may just prove impossible to re-create in a more advanced form.

To read the complete article, see:
An elegy for cash: the technology we might never replace(https://www.technologyreview.com/2020/01/03/131029/an-elegy-for-cash-the-technology-we-might-never-replace/)