rethinking

Rethinking The Future Of Cash

As cyberattacks and privacy breaches mount, Nordic nations are leading the move to recalculate how digital-dominant economies operate.

The global shift toward cashless payments—a shift driven by speed, convenience, and digital innovation—has gained significant momentum in recent decades. The Covid-19 pandemic and the preference of younger generations for digital transactions have led many to consider a cashless society inevitable.

However, recent wars, natural disasters, and other crises have revealed vulnerabilities in fully digital systems. This has prompted a global reassessment of the significance of physical cash. Increasingly, governments, central banks, and technologists are endorsing a hybrid payments model that combines the benefits of digital transactions with the resilience, privacy, and inclusivity offered by physical money.

No region has embraced the cashless future quite like the Nordic nations. Sweden, in particular, has developed a largely digitalized economy. Sweden and Norway have the world’s lowest amount of cash in circulation as a share of GDP, according to Sweden’s Riksbank. Currently, about one-tenth of in-store purchases in Sweden are made with cash, compared to about one-half in the euro area.

Magnus Lageson, chief product officer at Sweden’s Crunchfish Digital Cash, has not used cash for over 10 years, he tells Global Finance. “The younger generations, like my kids who are 17 and 19, have never used cash in Sweden—and it’s the same for everyone in their generation,” he says.

Recently, however, the Nordic countries have begun to reassess their nearly cashless societies. One immediate concern is the Ukraine-Russia war and the threat of Russian hybrid warfare that might include cyberattacks and assaults on power grids and telecom infrastructure. In situations where electricity is lost, digital payment systems may fail.

Last November, Sweden’s government distributed a brochure entitled “In Case of Crisis or War” to all households. This brochure advised Swedes to keep on hand “enough cash for at least one week, preferably in different denominations.”

Norway has similarly advised its citizens to maintain a supply of physical cash, because digital payment systems are vulnerable to cyberattacks from abroad. Last year, legislation was passed to make it easier for Norwegians to use cash. Finland has also encouraged its citizens to prepare an “emergency home kit” that should include a small amount of cash in case of disruptions to payment systems.

There are several reasons why Sweden, Norway, Finland, and other nations may want to retain a cash option. Cash transactions are private, whereas digital payments, especially within a central bank digital currency (CBDC) framework, may allow for government monitoring, such as tracking purchasing habits and locations.

Additionally, marginalized groups, including low-income individuals, still rely on cash for their daily transactions. Not everyone owns a smartphone or has a bank card.

New Zealand Flips The Switch

In February 2023, Cyclone Gabrielle knocked out power and telecom systems across vast areas of New Zealand. Many bank ATMs and other electronic payment infrastructure went dark, leaving people unable to pay for essential items like water and food for days in some regions.

The impact of Cyclone Gabrielle highlighted the importance of cash as a reliable payment option during community-level or national emergencies, as Karen Silk, assistant governor at the Reserve Bank of New Zealand (RBNZ), tells Global Finance. The country is proceeding with a pilot program aimed at developing digital cash for citizens and businesses. This would function similarly to traditional physical cash.

India, concerned about its unbanked population, has developed an offline digital payment system called UPI 123PAY, which allows users to perform transactions without an active internet connection. However, the system still requires at least a feature phone.

A study published by the European Central Bank (ECB) in December revealed that most euro-area consumers still consider having cash as a vital payment option. This sentiment has increased over the past few years, rising from 60% in 2022 to 62% in 2024. Remarkably, even among young people aged 18-24, 55% consider the option to pay with cash at least “fairly important.”

“The march toward a cashless society is not inevitable,” says Jay Zagorsky, a professor at Boston University’s Questrom School of Business and author of The Power of Cash: Why Using Paper Money Is Good for You and Society, in an interview with Global Finance. “I think that once people understand that paper money has many benefits—from ensuring privacy to reducing the price people pay to protecting them from natural disasters—cash will enjoy a rebound.”

Ignazio Angeloni, a former ECB official and current fellow at Milan’s Bocconi University, expresses his satisfaction with the renewed respect for cash. “I was always convinced that physical cash should be part of a diversified and robust payment ecosystem,” he says. “I am glad to see that an increasing number of people and institutions share this view.”

‘Only Elderly People Still Use Cash’

Tory Jackson Galileo
Tory Jackson, Head of Business Development and Strategy, Galileo Financial Technologies

Not all economists, policymakers, and central bankers share Zagorsky’s optimism about cash use. Paul De Grauwe, a professor at the London School of Economics and a former member of Belgium’s Federal Parliament, notes, “The use of coins and paper money is declining inexorably. Only elderly people still use cash. I think this trend is not going to stop.”

The convenience of digital payments cannot be overlooked. For instance, 29 out of 30 professional football stadiums in the US have gone cashless. The growing length of concession lines largely drove this decision. Handling cash—making change and counting bills—was slowing down service, leading many fans to forgo food and drinks rather than wait. By banning cash, stadiums created a win-win for fans and vendors alike.

In Latin America, digital payments are increasingly the preferred option for many consumers, both online and offline, according to Tory Jackson, head of business development and strategy for Latin America at Galileo Financial Technologies. Cash accounted for 57% of consumer-payment volume in the region in 2022, including the informal economy, reports Payments and Commerce Market Intelligence (PCMI). That figure has since dropped to 37%.

There is a prevailing sense of inevitability regarding the shift toward digital payments. As Crunchfish’s Lageson puts it, “The future is cashless; there is no turning back.”

But maybe it’s not so inevitable.

Are Digital Systems Too Fragile?

The Nordic countries were pioneers in digital payments, but they may be reaching the limits of a cashless society.

Vitalik Buterin, a co-founder of Ethereum, recently commented, “[The] Nordics are walking back the cashless society initiative because their centralized implementation of the concept is too fragile. Cash turns out to be necessary as a backup.”

Currently, digital payments rely on three legs: electricity, communications, and computers. All three must work all the time for digital transactions to occur, Zagorsky points out. In a cashless system, adversaries can disrupt the economy by targeting any one of these legs—whether by attacking the power grid, cutting telephone cables, or hacking payment-system servers.

Arina Wischnewsky
Arina Wischnewsky, Economist, Research and Teaching Associate, Trier University

A more practical solution that many central banks are advocating is a hybrid system: using digital transactions as the default option while maintaining cash as a parallel system to ensure privacy, accessibility, and contingency planning, says Arina Wischnewsky, an economist and a research and teaching associate at Trier University in Germany.

“A completely cashless society has always been more of a theoretical ideal than a realistic short- to medium-term goal,” Wischnewsky says. “The idea of completely abandoning physical cash is increasingly viewed as both risky and exclusionary, particularly in light of financial-inclusion and crisis-resilience concerns.”

Are Offline Digital Payments Viable?

In April, the Bank of England (BoE) released a report evaluating the feasibility of implementing offline payment functionality for a yet-to-be-created digital pound sterling. This option “might provide additional resilience in the event of network disruption or outage of telephony services, and support financial inclusion and certain payment use cases, such as transportation,” the central bank proposed. Several technology companies, including Thales, Secretarium, Idemia Secure Transactions, Quali-Sign, and Consult Hyperion, submitted prototypes to the BoE.

In a similar vein, the ECB issued a substantial tender in 2024 for fintech companies to develop a digital euro with offline capabilities.

Piero Cipollone, a member of the ECB executive board, emphasizes the importance of maintaining payment options. “The inability to use physical cash in online transactions or for digital payments at the point of sale deprives us of a key payment option, reducing resilience, competition, sovereignty, and ultimately, consumers’ freedom to choose how to pay,” he stated in a recent speech to the Committee on Economic and Monetary Affairs of the European Parliament.

New Zealand’s projected digital cash solution would be Bluetooth-powered, enabling store purchases even when the power grid or wireless towers fail. Today, New Zealanders can’t make instant payments electronically to each other “unless they are both with the same bank,” says Silk.

None of these solutions has been implemented at scale, however. The BoE project demonstrated that while an offline digital pound might be technically feasible, there are questions about “security, performance, and user experience challenges which need to be explored further,” and particularly “security challenges related to double spending and counterfeiting.”

Keir Finlow-Bates, CEO and founder of blockchain research and development firm Chainfrog, says that the technical challenges of offline electronic cash aren’t dissimilar to those faced years earlier by cryptocurrency developers. In a 2024 blog post, he references the “double-spend” problem. “How does one make a digital construct behave like a physical object so that only one person can own it at a time? That is the core problem when designing and implementing offline digital cash.”

Wischnewsky acknowledges that offline private digital transfers are technically possible and that many projects, including offline CBDCs, show promise. Still, “These solutions are not yet mature, widely scalable, or secure enough for full deployment in a [national] payment system.”

The benefits could be tantalizing, though. “Choosing to pay with an ‘offline digital euro’ would allow you to maintain a level of privacy that is close to cash,” writes Maarten G.A. Daman, data protection officer at the ECB, in a post on The ECB Blog. “You could pay a friend for your share of a dinner, and only you and your friend would know the payment information. How? You would simply both have the digital euro app on your smartphones and hold them next to each other to transfer the money.”

Not only could the offline option allay privacy concerns, it could also ensure that the poor, elderly, or geographically isolated members of society aren’t further disadvantaged. This last group is of particular concern for China’s government, whose digital yuan is nearing full rollout.

“Cash remains an integral component of consumer payments, especially among China’s rural and semiurban population,” Kartik Challa, senior banking and payments analyst at GlobalData, tells Global Finance. “Offline payments could be a key bridge for inclusivity in a cashless society.”

Source link

From Automation to Exclusion: Rethinking AI Efficiency in the Global South

A Civil Service Transformed: The Case of Hong Kong

Hong Kong is currently conducting one of the most significant experiments in applying Artificial Intelligence (AI) within the civil service. The aim: to increase government efficiency and address a growing fiscal deficit. According to a report by CNA on February 26, 2025, the city plans to leverage AI to manage a major civil service restructuring effort.

By April 2027, Hong Kong plans to cut around 10,000 civil servant positions — reducing approximately 2% of staff annually. These reductions are part of a strategic push to trim government spending while maintaining, or even enhancing, public service quality through digital transformation. AI is expected to shoulder some of the workload left behind. For example, the Census and Statistics Department is already using AI to handle verification tasks previously done manually.

To support this shift, Hong Kong has committed over HK$11 billion (approx. US$1.4 billion) in AI innovation and digital transformation funding. This includes a HK$1 billion allocation for R&D institutions and a HK$10 billion innovation and technology fund targeting strategic future industries.

A Global Pattern: AI as Evaluator, Not Just Executor

This ambition mirrors a broader global pattern. In Indonesia and across the Global South, artificial intelligence is no longer a distant buzzword. It is quietly reshaping the public sector — not just by automating tasks, but by evaluating the very people behind them.

Civil servants in several pilot regions are now being rated by AI systems based on data traces: collaboration metrics, email patterns, task outputs. These scores are then used to “recommend” which roles are redundant, inefficient, or low impact.

This echoes trends around the world. In the United States, the Department of Energy’s Office of the Inspector General (DOE OIG) has tested AI to flag anomalies in procurement and performance. In South Korea, AI has been trialed to detect underperformance in public health roles. Across parts of Africa and Southeast Asia, donor-funded projects use algorithmic scoring to evaluate local staff performance for continuity.

The Distorted Lens of Efficiency

On the surface, this sounds fair. After all, who wouldn’t want a government that works better?

But look deeper, and the danger reveals itself.

AI is not just a tool. It is a lens. And any lens distorts reality based on how it was shaped — by whom, for what purpose, and with which blind spots. In the name of objectivity, we risk building systems that reproduce the very inequalities we failed to fix manually.

The real question is not: “Can AI detect inefficiency?”
It is: “Who defines efficiency? And who benefits from its definition?”

Jobs with emotional, preventive, or contextual value — often held by women or marginalized communities — rarely register well on digital data. Loyalty and discretion, the backbone of many silent roles in diplomacy or social cohesion, are invisible to algorithms. The AI sees output. But not intention. It scores impact. But not nuance.

A Looming Social Risk in the Global South

Beyond governance concerns, there are critical social risks, especially in developing nations. The displacement of human workers by AI can exacerbate unemployment, particularly where alternative job opportunities are scarce. The digital literacy divide means many workers may not have the skills to transition into new roles that require AI fluency. And in countries where digital infrastructure remains uneven, the push toward AI-first public service may deepen inequality rather than bridge it.

A hopeful counterexample: Rwanda’s AI policy includes mandatory community consultations and AI literacy programs as preconditions for any government automation project. While still in early stages, this localized, participatory approach reflects an awareness of both technical and social impact.

Governance That Protects Human Dignity

Worse, the introduction of AI in bureaucratic job assessments often lacks three critical governance pillars:

Explainability – Can employees understand why they are marked “low value”? Or are they just shown a score?

Human-in-the-loop decision-making – Is there room for compassion, second chances, or clarification before action is taken?

Public transparency – Who audits the system? Who sets the parameters? And is the public informed?

Without these guardrails, AI becomes not a tool for reform — but a tool of quiet elimination. You are not fired. You are “scored out.”

In Global South contexts, this is particularly risky. Power is often personalized, and resistance to automation is framed as “anti-progress.” The pressure to adopt AI for prestige, for cost-cutting, or donor appeal creates a climate where ethical reflection is deemed a luxury.

But dignity is not a luxury.

Contextual Governance, Not Imported Frameworks

The solution is not to reject AI. It is to govern it.

We need multidisciplinary teams to co-design such systems. Ethics officers must be embedded from day one. Auditability must be built in, not patched later. And most of all, we must recognize that governance is not just about outcomes — it is about the process of deciding what counts as valuable.

Crucially, this governance must be contextually rooted. Borrowing AI regulatory frameworks from the Global North without adaptation risks deep mismatch. Social structures, political systems, cultural dynamics, and levels of digital literacy vary widely across the Global South. Most developing countries are still primarily users, not developers, of AI — making them more vulnerable to biases embedded in foreign-made systems. If not critically assessed, these biases could further marginalize local communities under the guise of algorithmic neutrality.

At the same time, reskilling and upskilling efforts must be scaled to support those displaced by AI-driven efficiency measures. Governments, educational institutions, and industry must work together to ensure that affected individuals — especially those from vulnerable communities — can transition into meaningful roles in the evolving digital economy.

What Kind of System Are We Building?

When AI becomes a gatekeeper of human worth, our silence becomes complicity.

It is not enough to build systems that work.
We must build systems that understand why people matter.

Source link

Breaking Barriers: The Case for Rethinking Geopolitical Education in India

In an era where technological paradigms shift with geopolitical winds, where design thinking must account for cultural diplomacy, and where engineering solutions intersect with national security concerns, India faces an epistemic crisis in higher education. The disciplinary silos that have long characterized our academic institutions—compartmentalizing knowledge into business, technology, design, and social sciences—have become intellectual anachronisms. This essay argues not merely for incremental curriculum reform but for a fundamental reconceptualization of knowledge production and transmission across disciplines, with particular emphasis on geopolitical literacy as an intellectual cornerstone for students of all academic backgrounds.

The Epistemological Divide: Empirical Evidence

The data regarding interdisciplinary education in India reveals a stark reality that demands urgent intellectual attention:

  • Among India’s premier technological institutions, only 4.3% offer substantive coursework in international relations or geopolitical analysis (IIT Council Report, 2024).
  • Within design schools, a mere 2.7% incorporate geopolitical considerations into their curriculum despite the growing importance of cultural diplomacy in global aesthetics (Design Education Review, 2023).
  • Computer science programs show particular deficiency, with 91% offering no coursework on the geopolitics of technology, despite India’s positioning in the global digital economy (National Association of Software Companies, 2024).
  • Engineering students receive, on average, less than 3.5 credit hours of humanities education throughout their entire degree program (All India Council for Technical Education, 2024).

When juxtaposed against global benchmarks—where leading institutions mandate cross-disciplinary exposure—this disciplinary isolation represents not merely a pedagogical oversight but an intellectual impoverishment with profound implications for India’s future.

The segregation of knowledge into discrete disciplines reflects a Cartesian reductionism increasingly at odds with contemporary epistemology. The complex problems facing modern societies—from climate adaptation to artificial intelligence governance—exist in what philosopher Horst Rittel termed the realm of “wicked problems,” resistant to solutions derived from any single knowledge domain.

Consider these intellectual frameworks that demand cross-disciplinary integration:

  1. Systems Theory Perspective: Complex adaptive systems that characterize global affairs cannot be understood through linear causal models typical of siloed education. As philosopher Edgar Morin argues, understanding complexity requires transcending disciplinary boundaries.
  2. Epistemic Justice: The privileging of certain knowledge forms (technical, financial) over others (geopolitical, cultural) represents what philosopher Miranda Fricker identifies as “hermeneutical injustice”—denying students conceptual resources needed to interpret their reality.
  3. Constructivist Learning Theory: Knowledge constructed through interdisciplinary engagement leads to cognitive frameworks better suited to navigating complexity, as educational theorist Jean Piaget established.
  4. Critical Realism Philosophy: The stratified nature of reality (physical, biological, social, geopolitical) means that reduction to any single analytical level produces incomplete understanding—a perspective advanced by philosopher Roy Bhaskar.

NEP 2020: Potential and Contradictions

India’s National Education Policy 2020 ostensibly embraces interdisciplinary education, calling for “holistic and multidisciplinary education” as a foundational principle. Yet a critical analysis reveals significant contradictions between rhetoric and implementation mechanisms:

The policy states, “There will be no hard separations between arts and sciences, between curricular and extracurricular activities, or between vocational and academic streams.”

However, structural implementations reveal persistent disciplinary segregation:

  • Credit allocation systems still predominantly favor disciplinary depth over breadth.
  • Faculty evaluation metrics continue to reward specialization over integration.
  • Administrative structures maintain departmental silos instead of problem-focused organization.
  • Funding mechanisms disproportionately support traditional disciplinary research.

What emerges is a form of what sociologist Pierre Bourdieu would term “symbolic violence”—the appearance of change while reproducing existing knowledge hierarchies. True interdisciplinary education requires not merely allowing elective courses but fundamentally restructuring the epistemological foundations of higher education.

Geopolitics as Foundational Knowledge

The argument for geopolitical literacy extends beyond traditional international relations frameworks. Geopolitics offers essential intellectual scaffolding for understanding the context in which all disciplines operate:

For Design Students

Design does not occur in a geopolitical vacuum. Consider:

  • The emergence of “strategic design” as a field addressing complex social problems requires understanding of geopolitical forces.
  • Cultural diplomacy increasingly employs design as soft power—87% of nations have invested in design-forward cultural initiatives (UNESCO Cultural Indicators Report, 2023).
  • Supply chain aesthetics are shaped by geopolitical realities—the movement of materials, labor, and production reflects power dynamics that designers must navigate.
  • Design futures work must account for geopolitical scenarios—42% of failed design innovations demonstrated ignorance of geopolitical constraints (Design Management Institute, 2024).

For Technology Students

The bifurcation of global technology ecosystems along geopolitical lines demands attention:

  • Semiconductor supply chains have become explicitly geopolitical, with India’s positioning requiring strategic understanding—the $10 billion India Semiconductor Mission operates in a geopolitical context students must comprehend.
  • Data sovereignty regulations reflect geopolitical tensions—76% of new technology regulations in India’s key export markets derive from geopolitical considerations (MEITY Analysis, 2023).
  • AI ethics frameworks diverge along geopolitical lines, with 63% of major differences attributable to geopolitical positioning rather than technical considerations (AI Ethics Global Review, 2024).
  • Technology standards-setting processes have become battlegrounds for national influence—participation requires diplomatic as well as technical expertise.

For Other Non-Social Science Fields

  • Agriculture students: 71% of agricultural market disruptions in the past decade stemmed from geopolitical events rather than climate or technology factors.
  • Medical students: Global health security increasingly operates as a function of geopolitical relationships—pandemic response coordination shows an 84% correlation with geopolitical alliance structures.
  • Architecture students: Urban resilience planning now incorporates geopolitical risk assessment in 67% of major global architectural firms.

Reimagining Interdisciplinary Education

Meaningful interdisciplinary education must transcend the tokenism of isolated courses to embrace what philosopher Hannah Arendt termed “praxis”—reflective action informed by theoretical understanding. This requires

Structural Reforms

  1. Epistemic Integration: Core courses should integrate knowledge across disciplines rather than merely adding electives—for example, “Geopolitics of Design” rather than “Design” plus “Geopolitics.”
  2. Faculty Development: Create joint appointments across departments and invest in faculty capacity to teach across disciplinary boundaries.
  3. Assessment Revolution: Move beyond discipline-specific metrics to evaluate students’ ability to synthesize knowledge across domains.
  4. Institutional Architecture: Reorganize academic units around problems rather than disciplines—establishing centers for “Technology Governance” rather than separate computer science and political science departments.

Pedagogical Innovations

  1. Wicked Problem Studios: Project-based learning focused on complex challenges requiring multiple knowledge domains
  2. Simulation-Based Learning: Complex geopolitical simulations where students from different disciplines must collaborate to address scenarios
  3. Embedded Fieldwork: Place students in contexts where disciplinary knowledge must be applied within geopolitical complexities.
  4. Collaborative Research: Structure research initiatives requiring teams spanning disciplines.

The resistance to interdisciplinary education reflects not merely administrative convenience but deeper intellectual commitments to particular forms of knowledge production. As sociologist Thomas Kuhn demonstrated, paradigm shifts in knowledge structures face resistance from established practitioners. This resistance takes several forms:

  1. Epistemic Hierarchy: The implicit ranking of knowledge types that privileges technical over contextual understanding
  2. Disciplinary Identity: Faculty self-conception rooted in disciplinary expertise rather than problem-solving capacity
  3. Measurement Fetishism: Overreliance on discipline-specific metrics that cannot capture interdisciplinary competence
  4. Resource Competition: Zero-sum thinking about curriculum space and faculty resources

Beyond Employability

While much discourse around education reform focuses on employability, the argument for interdisciplinary geopolitical education runs deeper. At stake is what philosopher Martha Nussbaum identifies as the “capability for critical thinking”—the intellectual capacity to comprehend and engage with complex realities.

The segregation of knowledge domains impoverishes not merely professional competence but civic capacity. In a democracy increasingly facing complex, interconnected challenges, citizens require integrated understanding. This represents what political philosopher Michael Sandel terms “civic education”—preparation not merely for economic contribution but for meaningful participation in collective self-governance.

Empirical Evidence of Interdisciplinary Impact

The case for interdisciplinary education is not merely philosophical but empirically grounded:

  • Teams comprising members with diverse disciplinary backgrounds demonstrate 43% higher problem-solving efficacy for complex challenges (Harvard Interdisciplinary Research Initiative, 2023).
  • Organizations led by individuals with interdisciplinary education show 37% greater adaptive capacity during geopolitical disruptions (McKinsey Global Institute, 2024).
  • Patents filed by teams with interdisciplinary composition show 28% higher citation impact and 41% greater commercial application (World Intellectual Property Organization, 2024).
  • National innovation systems with higher rates of interdisciplinary collaboration demonstrate 23% faster response to complex crises (OECD Innovation Policy Review, 2023).

Beyond NEP 2020: A Radical Reimagining

While NEP 2020 provides rhetorical support for interdisciplinary education, implementation requires more fundamental reconceptualization. True interdisciplinary education demands:

  1. Philosophical Reconciliation: Acknowledging that the fragmentation of knowledge is itself a historical construct rather than an epistemological necessity
  2. Structural Transformation: Moving beyond departmental structures to problem-focused organization
  3. Pedagogical Revolution: Replacing linear curriculum models with networked knowledge structures
  4. Assessment Reconception: Developing evaluation frameworks that value synthesis and integration
  5. Faculty Transformation: Recruiting and developing scholars capable of transcending disciplinary boundaries

The Intellectual Imperative

The argument for interdisciplinary geopolitical education transcends instrumental concerns about career preparation. What is at stake is nothing less than our capacity to comprehend and address the defining challenges of our era.

For India’s position in the global knowledge economy—and more fundamentally, for its democratic vitality—the integration of geopolitical understanding across disciplines represents not a curricular luxury but an intellectual necessity. The continued segregation of knowledge domains reflects not merely administrative convenience but an impoverished conception of education itself.

As philosopher John Dewey argued, education must prepare students not merely for the world as it exists but for creating the world that could be. In an era of profound geopolitical transformation, this preparation requires not the reinforcement of intellectual silos but their transcendence. The question is not whether design students, technology students, and others should be “allowed” to learn international relations—it is whether we can afford the intellectual impoverishment that results from preventing them from doing so.

Source link