Will Israel be the World's First 'No Cash' Society?

[Irish Zionist]

I read in the comments section a question, what will happen to Israels tourist industry when people can't use cash. I'd certainly be put off visiting or living a country with no way to get cash.

http://www.israelnationalnews.com/News/News.aspx/172028#.UjjDzj9jHAs
The government on Tuesday authorized establishment of a committee that will examine ways to eliminate cash from the Israeli economy – the better to prevent citizens from cheating on their taxes. The committee will be chaired by Harel Locker, director of the Prime Minister's Office.

Cash is easily passed from individual to individual, and transactions using cash can take place without the tax man's supervision. Not so electronic transactions; with modern computers, banks can keep tabs on how much people deposit into their accounts and how much they withdraw, while credit card companies have an up to the second record of how much people spend.

Members of the panel will include top staff from the Israel Police, the Tax Authority, the chairman of the Government Authority on Money Laundering and Terror, the Bank of Israel's income and payments director, State Attorney's office officials, and more.

According to many of these officials, cash is bad – because it allows individuals to get out of their tax payment responsibilities. Today, an enterprising tax collector cannot easily compare income and outflow. While he may suspect that a person living beyond his reported means is cheating on his taxes, there is no way to know for sure, without solid evidence. In a cashless economy, all records will be electronic, and checking who makes what and how much they owe in taxes – and collecting it before it gets to their account – will be a much simpler matter, the theory goes.

Officials in the Prime Minister's Office declared that “around the world, it is recognized that cash is a key element of the illegal economy and money laundering. It allows a wide gap between reported and actual incomes, with the corresponding effect on tax revenues.” By eliminating cash, the PMO said, “it will be possible to expand the tax base, and prevent money laundering.” The committee will study the issue from all its perspectives and make recommendations, the PMO said.

One issue the committee will be examining, the PMO said, was the imposing of administrative fees on electronic transactions, common in Israel. Whatever solutions the committee comes up with, the office said, it will ensure that individuals who have no choice in the matter will be able to make transactions in a manner that will not tack on extra expenses.

Observers said that it was hard to imagine the government succeeding in this effort. “A move like this could really weaken the economy,” said one observer. “The only thing declaring cash obsolete will do is to encourage people to use dollars or other foreign currency for financial transactions. Unless the government plans on making it illegal to hold foreign currency, there is no way to get rid of cash and the problems that go along with it.”

[Binyamin Yisrael]

At least then they wouldn't have the evil Leftist designs on Israeli currency that Chaim once made a video about. They want to make Israeli currency to have pictures of Secular "poets" rather than the current designs featuring Israeli Prime Ministers and Presidents. The current 50 shekel bill is the exception that has a religious writer (Agnon). But they want to make all the currency meaningless Secular "poet" nonsense.

[Binyamin Yisrael]

What will they do if people owe money to someone who bought them something? Do they have to give them a check? What about people from abroad? If you use your American credit card on everything, there is a fee for foreign currency (It's usually 3%.). You can exchange dollars for shekels at the post office in Israel without a service charge. That's the cheapest way for tourists to buy things in Israel.

[angryChineseKahanist]

they tried this stupid experiment in Africa already.

[Zelhar]

they tried this stupid experiment in Africa already.

At least in Africa they don't pay taxes either. I think the Israeli scheme is even worse.

[Dr. Dan]

Taxes are already for the corrupt government. The government wants to make slaves out of them much like the kings after king Solomon

[cjd]

What will they do if people owe money to someone who bought them something? Do they have to give them a check? What about people from abroad? If you use your American credit card on everything, there is a fee for foreign currency (It's usually 3%.). You can exchange dollars for shekels at the post office in Israel without a service charge. That's the cheapest way for tourists to buy things in Israel.

I am not a person that walks around with a cell phone in my hand at all times but from what I see lately most people do... This being the case have you ever noticed the ad on TV that shows people paying for small transactions using their cell phones to transfer money into other peoples accounts... This is the seeds of a cashless society.

[Spiraling Leopard]

They will want to put chips into people. I think when applied to muslims this is a good idea.


We are a law abiding organization that do not advocate violence.

[Binyamin Yisrael]

I am not a person that walks around with a cell phone in my hand at all times but from what I see lately most people do... This being the case have you ever noticed the ad on TV that shows people paying for small transactions using their cell phones to transfer money into other peoples accounts... This is the seeds of a cashless society.

I usually pay for things with my credit card. I don't take loans. I just pay it off right away. I like that because it's easier and also because you get points for it so you can get cash back checks or a statement credit. But I don't like "smart phones". But how do people give each other money than. Like what if someone gives your money as a gift and they give cash? Even though if I have cash I'll put it in my checking account to send to credit cards. But I don't see how cash can be eliminated. Some people can't even get credit cards because they have bad credit. Also, "you know who I be talkin about" usually go to check cashing agencies because they don't have bank accounts at all. So there is no way to completely eliminate it unless they give people pre-paid cards instead. But what about little kids whose parents give them money to go the store. A young kid under a certain age can't you a credit card or any other electronic means. Or even a kid buying something from the ice cream truck. Ice cream trucks or similar types of places don't even take credit cards. There are even some small business that don't take credit cards.