Philadelphia Passes Law Against Not Accepting Cash: How Could This Affect Bitcoin?
According to a recent report released by The Wall Sreet Journal, Philadelphia passed a law against not accepting cash. That means that retailers in the city will have to accept cash as a means of payment since July. Those supporting the bill are Democrats that want to protect people that do not have credit or debit cards. Could this affect Bitcoin (BTC)?
It seems that Philadelphia is fighting against cashless businesses. There is currently a tendency around the world to move to cashless means of payments. This is clearly very comfortable for many. It is not necessary to go outside with a wallet because it is already possible to pay using a smartphone. Credit and debit cards are also a good way to avoid carrying cash at all times. Digital applications are also allowing people to move towards new ways of processing daily transactions.
Ritchie Torres, New York City Councilman, said that cashless payments are also the future. He said that there is a need for legislative response on the matter. There are some states such as Massachusetts and New Jersey that have state laws related to cashless businesses. In these states, it is necessary for stores to accept cash.
There are several businesses that started to accept virtual currencies due to the fact that transaction fees were very high for credit and debit cards. Thus, it was becoming a burden for many shops to keep using these digital payments. With cash, the need to pay a fee for every transaction disappears, thus being a net gain for both clients and businesses.
There are some problems with virtual currencies though. They are volatile and the fees paid to the network are unpredictable. Thus, the actual benefits of them when they are used for payments are limited. Even when the transaction can take place in just a few minutes rather than waiting for several weeks before the funds arrive at the bank account of the business. Additionally, using cash reduces the value of robberies.
There are some problems with cash as well. It can be counterfeited, it is easier to steal and it depends on a centralized government. Virtual currencies are fast, easy to use and they provide greater privacy than credit and debit cards.