Sunrise host Nat Barr sounds the alarm on Australia’s shift to a cashless society

In a thought-provoking segment on Sunrise, host Nat Barr has ignited a crucial conversation about the potential drawbacks of moving towards a cashless society.

In an era dominated by the rise of digital transactions and the widespread adoption of contactless payments, Barr highlighted the growing significance of addressing potential issues in a world reliant on these technologies. She underscored the impact of unforeseen events, referencing the recent Optus outage that not only brought businesses to a standstill but also left customers unable to complete transactions for goods and services.

Barr discussed these concerns in a tense segment alongside Minister for Government Services Bill Shorten and Shadow Finance Minister Jane Hume.

“The problem is — do we need cash for those ‘just in case’ moments like the Optus outage when people couldn’t pay for anything and cafes and small businesses had to shut down for the day because they couldn’t do anything else,” Barr began.

Barr asked Shorten about the possibility of such a scenario unfolding and whether he could foresee a world in which “we have to pay to use our cash”.

“I certainly hope not,” Shorten replied.

Shorten provided more context by referring to a recent speech from Reserve Bank Governor Michelle Bullock in which she revealed a notable shift in cash usage. In 2007, 70 percent of transactions were in cash, but the current figure is only 13 percent.

Bullock expressed concerns about potential fees linked to distributing banknotes while emphasising the actual costs businesses face when dealing with cash, highlighting the importance of finding a balance between technological progress and practical considerations for various sectors.

Shorten emphasised the challenges ahead, noting that banks are reducing ATMs, and major cash-carrying companies have merged, leading to increased costs for cash transactions.

Shorten said he hoped “paying cash to use cash” wasn’t rolled out, as it would anger the public.

Senator Hume echoed these concerns, stating that the idea of a cashless society is premature, and that Australians should not be charged for using their legal tender.

“Cash is still legal tender and Australians should not be charged for the privilege of using their own legal tender,” Hume said.

“I would hope that the institutions involved would make sure Australians aren’t being charged more (for using cash).

“It was the last government who made sure that the public weren’t charged ATM fees.

“We want to make sure Australians can use their own money without being charged extra.”<

Aligning herself with public sentiment, Barr concluded the segment by expressing concern about the potential backlash if Australians were required to pay fees for using their own cash.

“I don’t think this will go down well, with Aussies, if we have to pay to use our own cash. Let’s hope it doesn’t get to that,” Barr said.