In a country where e-payment is the primary mode of doing business transactions, China says rejecting physical cash is illegal. The Chinese central bank clarified on Monday that such practices of accepting cash on hand could eventually result in the loss of confidence on the inherent value of physical money. This would also be unfair for those who have yet to get accustomed in using electronic payments in their daily businesses.
As cited over at Reuters, the country's major finance and banking authority made a post on its official WeChat site, just in time when e-payments made via platforms like Alibaba Group's Alipay or Tencent Holdings's WeChat have already become a common practice in China. These modes of payments were generally accepted in a wide range of businesses and establishments including public transport ticketing offices, as well as retailers like groceries and coffee shops.
The apparent convenience it offers to vendors and buyers alike resulted in some establishments in major Chinese cities like Beijing and Shanghai to prefer accepting e-payments only, a report from South China Morning Post added.
However, the People's Bank of China made it clear that while electronic payments has given the people a new, easy way to pay, it should not replace cash payments. Should this practice become more mainstream, it's likely that people will totally abandon the use of physical cash.
Moreover, preferring e-payments over cash is particularly unfair to those people who don't have the means to gain access to the payment service. Examples of these are the elderlies or those who are living in the underdeveloped parts of the country. These individuals have, more or less, encounter difficulties in mastering the rather complicated processes needed to complete an electronic payment.
The Chinese central bank went on to point out local government authorities who are promoting the use of this financial technology (fintech) advancements in their respective locales. It said that despite their vision of becoming a so-called cashless city, they should, nevertheless, prevent people from using real wads of cash when doing business transactions.
Ease of Use
It's no wonder why both sellers and buyers would prefer using e-payments. On the consumer side, they would only have to use their smartphone and other smart devices such as smart watches to transact, eliminating the need to carry physical cash.
Stores and establishments, on the other hand, would only have to provide QR code (Quick Response code) where patrons can swipe for payments.
