The Growing Threat of a Cashless Society: Lessons from the Global IT Outage
In a startling shift, major British newspapers have begun highlighting the dangers of a fully cashless society following a widespread IT outage that crippled digital payment systems across the globe. This event has brought to light the inherent fragility of our increasingly digitized financial infrastructure and serves as a stark reminder of the vital role cash still plays in our economy.
The Chaos of Digital Dependency
On July 19, 2024, a content update by cybersecurity giant CrowdStrike caused millions of Microsoft systems worldwide to crash. As reported by Nick Corbishley for Naked Capitalism, this outage had far-reaching consequences:
“When a content update by the cyber-security giant CrowdStrike caused millions of Microsoft systems around the world to crash on Friday morning, bringing the operating systems of banks, payment card firms, airlines, hospitals, NHS clinics, retailers and hospitality businesses to a standstill, businesses were faced with a stark choice: go cash-only, or close until the systems came back online.”
This incident laid bare the vulnerability of our tightly coupled
IT-based societies, particularly in the realm of banking and payments.
The fallout was especially severe in countries like Australia, where
cashless transactions have been actively encouraged by the government...<<<Read More>>>...