Comment Re:Flag this topic as "obvious" (Score 4, Informative) 476
Banks hate cash. It requires physical handling. It can be stolen. It wears out. It "isn't working for us" as it sits in a vault, an ATM, or an armored car. Electronic money can be working all the time - earning interest, being leveraged, being arbitraged, whatever. Cash is so "static" compared to electronic funds.
The Brave New World is almost here. Add an implant and the process will be complete. Can you imagine being arrested on suspicion of a serious crime because 30 minutes prior to the crime, in the "walking distance" proximity, you bought a pack of gum with your implant (or your debit card, or your smartphone)?
I'm rather old, my friends, and as you revel in your youth (assuming you are there), marvel at how anyone could be happy to be older. This world is yours. I'll be in it for a little longer, but not nearly as long as so many of you. I suppose cashless is your future - not so much mine.
Actually, cash and any / all deposits and withdraws whether by check, electronic transaction etc starts "working" every night as it's reconciled with the Federal Reserve (or any nation's Central Bank). The true means that bank deposits start "working" is when a Bank makes a loan, which creates money out of thin air
Those transactions as well are reconciled with the Central Banks. Central Banks control the money supply by manipulating interest rates
So 100 million in cash and checks puttering around a city in an Armoured Car are not only working, they are enabling the bank to make $900 million (for example) in new loans created out of thin air (the borrower's risk of paying it back is the real currency of banking).
Easy Credit is good for the economy although it also runs the risk of inflation, so they can't just do what they want without repercussions. But it creates money that otherwise would not exist, that money is spent (the old Econ textbooks would say a new dollar is spent 7 times, creating $7 in economic benefit. That multiplier might have changed since I was in college, but not by much and with electronic transactions, because they are so quick, it might even be higher than 7x now).