By Rory Hall
May 5, 2017
Will E-Commerce Usher in a Cashless Society?
As we have been documenting for the past several months, China is moving closer and closer to being a cashless society. With the advent of Gold Money and WeChat and having the ability to transfer gold [digital gold that can be easily converted into physical gold], combined with more than 40% of 1.3 billion people voluntarily using their phone or other digital form of payment, the Chinese citizens are leading the charge in eliminating hard currency from the landscape.
With the IMF producing a white paper describing how nations should take a “more friendly” approach to getting their citizens to want to go cashless it seems the Chinese must have a played a major role in producing the information. What is unfolding could very easily be a victory in the war on cash without anyone having to say a word.
Banyan Hill provides some detail and compares the U.S. e-commerce market to that of the Chinese
Relations [between China and the U.S.] have eased to the point that Wall Street is once again taking an interest in Chinese-based companies, such as Alibaba Group, Baidu and JD.com. But it’s not just that China is one of the fastest-growing economies in the world. Note that the three hottest Chinese firms also all specialize in one particular market: e-commerce.
Stateside, e-commerce is expected to grow 8 to 12% this year, coming in at between $427 billion and $443 billion, based on Census Bureau data. That’s no small market, but it lags well behind e-commerce in China, which nearly reached $1 trillion last year. And this year? Well, just look at this chart:
With more than $1 trillion in e-commerce sales projected in China this year, and more than $1.5 trillion in 2018, “massive” is an appropriate description. It’s no wonder that the U.S.’s largest brick-and-mortar retailer, Wal-Mart, increased its stake in Chinese e-commerce giant JD.com to 12.1%, or roughly $4.87 billion, back in February.
It’s also why Amazon.com has spent millions trying to break into the Chinese e-commerce market. Unfortunately for Amazon, it’s still trying to gain that much-needed foothold. Source
China, it appears, doesn’t really want a ponzi scheme like Amazon fouling the e-commerce market! But, I digress.
When your economy is growing at the pace of China’s, current growth is approximately 6%, and your economy is contracting as the U.S. has been for the past several years, current growth is 0.7%, it seems the time to strike would be now. The Chinese are doing just that. Taking advantage of a growing middle class and companies making it easier to attract more business by simply being wherever the people, and more importantly their phone, happen to be at the moment. No need to “go shopping” all you need to do is find a place offering a little more quiet or keep moving through your task and order what has your attention.
I am not a fan of e-commerce as it represents a form of control I would rather avoid, but it seems my opinion doesn’t count for much. The world is moving toward digital currencies, period. With the rise of cryptocurrencies, like Bitcoin, digital gold currencies like Gold Money and WeChat, the world will soon be saturated in e-commerce. We can only hope the digital gold currencies begin taking a bigger bite out of the fiat based digital debt system.
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