of payment offers many benefits such as external trade and ease of payments, those are coupled with issues such as reliability, safety (data protection, cybersecurity etc). However, the use of cash, especially in large sums, also has its own limitations and concerns (robberies, logistics etc). Hence, should the government focus more on the electronic forms of payment, or a hybrid? NB: Keep in mind many of our citizens are unbanked (no bank nor credit union accounts) What would you advise the Government? Discuss, offering at least 3 reasons.
The payment system is define as the mechanism through which funds are transferred between individuals, businesses and governments (economic agents). Prior to the advent of the electronic forms of payment (debit/credit cards, e-wallets etc) transactions were mainly done using physical cash. Notwithstanding electronic forms of payment offers many benefits such as external trade and ease of payments, those are coupled with issues such as reliability, safety (data protection, cybersecurity etc). However, the use of cash, especially in large sums, also has its own limitations and concerns (robberies, logistics etc). Hence, should the government focus more on the electronic forms of payment, or a hybrid?
NB: Keep in mind many of our citizens are unbanked (no bank nor credit union accounts)
What would you advise the Government? Discuss, offering at least 3 reasons.
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