6-7-2023 (LONDON) According to Kent Matthews, Professor of Banking and Finance at Cardiff University, China is on track to becoming the world’s top country for cashless transactions. In an exclusive interview with Xinhua, Matthews highlighted that the proportion of money in circulation in the form of cash in China has dropped to a mere 3.7% and continues to decline.
“People are significantly reducing their usage of cash compared to 10 or 20 years ago. The shift towards a cashless society is unstoppable,” Matthews stated. He further noted that in the United Kingdom, cash represents approximately 2.9% of the total money in circulation.
Impressively, China has rapidly closed the gap with the UK in terms of transitioning to a cashless society within less than two decades. This showcases the speed at which cashless transaction technology has advanced in China, as well as the society’s swift acceptance of it.
Matthews expressed that he would not be surprised if cash usage in China drops to less than 2% of the total money in circulation within the next five years, highlighting the nation’s rapid adoption of technology. He recounted his personal experience of using his phone to purchase a mango from a street vendor in China for a small sum, illustrating the country’s advanced technological infrastructure and its impact on the digitization of its economy.
During his visit to China, Matthews was amazed to witness even the elderly, small shop owners, and street vendors utilizing mobile phones for transactions instead of relying on cash. “China is setting an example for the rest of the world in digital payments and demonstrating that age is not a hindrance,” he remarked.
However, Matthews emphasized that it is unlikely for any country to become entirely cashless. “There will always be a need for cash, and it would be impossible for any government to legislate its complete eradication,” he concluded.
