Friday, July 14, 2017

Yes, Gresham's Law applies

In economicsGresham's law is a monetary principle stating that "bad money drives out good". For example, if there are two forms of commodity money in circulation, which are accepted by law as having similar face value, the more valuable commodity will disappear from circulation.
We will all adopt the smart cash card.  

The plastic thing in our hand has a replacement value of $50, but the amount of equivalent cash, at the cost of paper and ink, exceeds that value.  The smart cash card does not require the paper transportation mechanism, and many of them will be given away by merchant banks and government agencies.

No, this is  not cashless, just paperless.  Even today I can transfer direct digital bearer cash via a transparent chat service, of direct between cash cards with no network.

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