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aleph_minus_oneyesterday at 8:50 AM6 repliesview on HN

> And the idea that physical money primarily aids social fraud, money washing and other illegal activities is pretty well established. They even killed the 500€ bank note, because it was almost exclusively used by criminals and most normal people never even touched one, much less used one for legit transactions.

At least in Germany in particular older people prefer to pay cash if possible - this gives the banks also less leverage with respect to abhorent fees. Since many people in Germany neither trust the banks nor the government anymore, acting this way is very rational.

Also the arguments concerning cash restrictions are seen very differently by the population: since there existed two oppressive regimes on German soil in the 20th century, a lot of people realize that the restrictions on cash are just another step towards restrictions of the citizen's freedoms (thus I am honestly surprised all the time that a lot of US-Americans who are so freedom-loving and distrust the government concerning the restrictions of civil rights are not in love of cash).

Thus, in Germany there exists the saying "Bargeld ist gelebte Freiheit" [cash is lived freedom].


Replies

seth123456yesterday at 3:17 PM

The Bafin (german banking regulator) seems to want to restrict that freedom. I have worked for a company where the business model is related to cash and the Bafin tries to find reasons to make it harder every couple of years, stating that the money could come from anywhere and because people are not fully KYCed (as it is only legally required for payments of 1000 EUR or more within 24h) there is no way to know. The business model is legal, but they can also make it harder to operate by putting more pressure and scrutiny to banks the company worked with.

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yorwbayesterday at 9:19 AM

> At least in Germany in particular older people prefer to pay cash if possible

Sure, but that's for small, everyday amounts. For values upwards of 500€, I think the familiarity of paying cash would be swamped by the nervousness of carrying way too much money with you, what if it gets stolen?

> this gives the banks also less leverage with respect to abhorent fees

The only time my bank has ever charged me a per-transaction fee was, ironically, when I withdrew cash abroad using my credit card.

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9devyesterday at 9:04 AM

> Since many people in Germany neither trust the banks nor the government anymore, acting this way is very rational.

Speak for yourself, this is either heavily overstated or a fringe opinion, luckily. Most people definitely do trust both government and banks to a sensible degree, even if they don’t like some decisions.

Some people like you apparently also don’t appreciate the immense freedom of SEPA transactions. Sure it’s good to have cash as an escape hatch for the occasional transaction off the record, but for almost everything else bank transfers are safe, inaccessible to third parties, free from fees, and easy to use. And above all else, we have a working democracy and not an oppressive regime? This whole debate often feels very disconnected and overblown in Germany.

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atq2119yesterday at 9:45 AM

> I am honestly surprised all the time that a lot of US-Americans who are so freedom-loving and distrust the government concerning the restrictions of civil rights are not in love of cash

I suspect it's a combination of factors, one of them being that US cash has absolutely awful usability compared to the Euro.

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natbobcyesterday at 12:20 PM

A vocal minority are freedom loving. A significant number are hooked on consumer debt. I feel like any sweeping generalization is going to be wrong… especially when referencing the USA which is basically 50 countries and has a population exceeding all of Western Europe.

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kelnosyesterday at 8:02 PM

> thus I am honestly surprised all the time that a lot of US-Americans who are so freedom-loving and distrust the government concerning the restrictions of civil rights are not in love of cash

I think there are a lot of Americans who distrust government/banks and try to deal in cash as much as they can. And there are a lot of people here who have bad credit and can't get a credit card, and quite a few unbanked lower-income folks who don't have bank accounts or debit cards.

But I think maybe as someone from another country you're misinterpreting the whole "individual freedom" thing that a lot of Americans push. I don't think cash vs. credit cards is really a big part of that, for whatever reason. While it is more common in some places in the US these days for some businesses to not take cash at all, still the vast majority of businesses do take cash, and everyone has a choice in how they'll pay.

There's also a financial engineering component, as most credit cards in the US offer some kind of rewards program or cash back for purchases made. For example, a credit card I have, when used for Lyft rides, gives me the equivalent of 7.5% off (I have to use the savings for travel costs through the credit card's travel site, but that's fine and worth it for me). Some cards are simple and just offer 1% or 2% back and that's it, but some have categories (like "3% cash back for gasoline purchases"), and some people get into the "game" of trying to match a credit card with a purchase to get the most cash back.

And even for people who don't get into the "game", they certainly won't mind a "free" 1% or 2% discount on everything just for using a credit card. Some businesses offer a discount for paying cash, or a surcharge for using a credit card, but many do not, so if you pay with cash, you're essentially overpaying, since the cost of credit card fees is built into the prices. (This is of course another way that poor people who can't get credit cards get screwed.)

I guess often enough, convenience and saving money wins over the whole "freedom" thing for people here.

Finally, I think there's also a bit of separation. Many credit cards don't even feel like they're associated with a bank. Many larger retail stores offer a branded credit card that of course has a Visa or MasterCard logo on it, but you have to dig to find mention of an actual bank. So even Americans who might distrust government and banks just don't see a strong association there when it comes to credit cards.

I also just don't think there's that much bank distrust going on in the US. Sure, people are still sore about the financial crisis of 2008, but also consider that was 17 years ago. We haven't had big bank issues in the US where banks devalue currency, or follow government orders to across-the-board steal money from citizens, at least not in widespread ways. People generally love to rag on banks when it comes to fees and penalties and hidden costs and crap like that, but many of those things have been made illegal, and, again, even for a bank-issued credit card, I think many people just don't make that association. It's just an easier way to make payments, without the risk of carrying cash around (and with protection if the card gets stolen and used), and sometimes you get discounts and cash back... what's not to like?