The law introduced by the Israel tax authority last week includes that any payment over the provided amount must be made through other means, such as digital transfer or a debit card. Individuals who are not listed as business owners can use up to 15,000 shekels in cash when it comes to trading, Xinhua news agency reported.
The "war on cash" began with the 2018 passage of the Law for the Reduction in the Use of Cash. It started limiting cash transactions of Israeli businesses and individuals in January 2019. As of Monday, August 1, the limits have been slashed nearly in half.
"We want the public to reduce the use of cash money," said Tamar Bracha, who is in charge of executing the law on behalf of the Israel Tax Authority.
She added that: "The goal is to reduce cash fluidity in the market, mainly because crime organizations tend to rely on cash. By limiting the use of it, criminal activity is much harder to carry out."
Violators of the said regulation are subject to penalties that can reach up to 25 percent of the transaction for individuals and 30 percent for businesses.
"There are some exemptions to the new law: charitable institutions, which are most common in ultra-Orthodox society; and trade with Palestinians from the West Bank, who are not citizens of Israel. In the case of the latter, deals including large amounts of cash will be allowed, yet they will require a detailed report to Israel's tax authority," the report said.
ZeroHedge's Tyler Durden said this kind of limitation is just one way to work toward "de-cashing" a population. He cited a 2017 International Monetary Fund paper that outlined other tactics, such as abolishing large-denomination bills, imposing reporting requirements on cash transactions over a certain threshold, requiring the declaration of cash when entering or leaving a country or applying an additional tax when cash is used.
Moreover, Durden said this "war on cash" isn't the only thing the country is doing as it heads to an authoritarian future.
"Israel has started technical trials for a central bank digital currency, which could help eradicate cash and maximize control; implemented digital vaccination passports that helped bar the unvaxxed from participating in various aspects of life; and maintained a controversial database storing the biometric data of millions of citizens," Durden said.
He also noted that Israel has joined a group of eight countries working toward the development of "digital identities" and has aggressively implemented facial recognition programs.
Due to the Wuhan coronavirus (COVID-19) pandemic, strict measures such as lockdowns and minimal face-to-face transactions were enforced. A lot of people worldwide have opted to use cards, online transactions and other contactless payment options instead of cash as a way to reduce contact with others.
Most businesses even required these and have banned the use of paper money and coins for hygienic reasons. A survey by Travis Credit Union back in 2021 concluded that 58 percent of the respondents will stop using cash completely once the pandemic is over. Even governments are proponents of the shift.
However, there are several drawbacks that should be looked into before a country gives in to the "war on cash." One of the main reasons for this is that "cashless" transactions take away your privacy as your personal data can be accessed by no one knows how many. Once you swipe your credit or debit card or enter your bank details via an online platform, your data is already vulnerable to theft, data breaches and fraudulent purchases. (Related: The cashless life won't be worth living.)
"Hackers are like bank robbers and muggers of the electronic world. Once somebody drains your account, you may not have any alternative ways to spend money. Even if you're protected under federal law, it will still be inconvenient to restore your financial standing after a breach," Justin Pritchard, a certified financial planner, wrote on the Balance.
Analysts worry that advocates of this move are actually promoters of the New World Order, where all nations will be under an authoritarian global administration. They can use the data to monitor and track people's spending and financial activities and get a hold of people's personal information.
Watch the below video that talks about the dangers of a cashless society.
This video is from the High Hopes channel on Brighteon.com.