Cash less transactions can help Zimbabweans out- Musewe

Economic and political analyst Vince Musewe  has said the cashless transactions can help Zimbabweans in their day to day buying demands as the

cash shortages continue to rock the nation.

He said A cashless society is a term describing the economic eco-system in which palpable, physical money, namely paper banknotes and metal coins, are replaced with virtual, digital money, and where cash circulation is substituted with payments done by using numerous types of cards, mobile devices and various other equipment connected to the internet.

"The benefits of a cashless society to the transacting public are much more than just convenience and safety associated with the payment system.

Current tight liquidity conditions and the need for financial transparency and inclusion can be solved through the adoption of plastic money," he

said.

"This also has the potential to contribute to GDP growth as the majority of the populace is brought into the banking system. In addition, a significant

percentage of GDP can be realized in the form of savings if Zimbabweans shift from cash to an electronic-based transaction system as money remains in the bank longer."

Musewe said because cashless payments can be traced, since they leave digital trails, it is argued that illegal market activities and illicit

fund flows can be restrained and possibly even eliminated in the long term thus benefiting the economy.

"This would help Zimbabwe tremendously especially given the increasing illegal externalisation of scarce foreign currency," he said.