Last week, an IT outage affected millions of devices and left businesses around the world struggling to make digital payments. (Source: X/@archiestaines9/Facebook)
Cash advocates say last week’s global IT outage is proof of why it’s important to keep cash on hand at all times. The glitch, blamed on security firm CrowdStrike, affected 8.5 million devices with the Windows operating system installed, affecting supermarkets, banks, gas stations, transport systems, airports and other key infrastructure services.
Some businesses were forced to only accept cash until the power was cleared, turning away many customers who rely on digital payments. Tasmanian butcher Bradley Rigney told Yahoo Finance that it was proof why cash will always be king.
“I think people don’t want to lose their identity and they want to have a say in who they are, how they run their business and how they live their life,” he said.
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The owner of Inglis River Meats has noticed an increase in customers paying with cash in recent months because the card machine frequently broke.
He said if the EFTPOS system went down it could be very “damaging” for a business like his.
“It’s awkward to come into the shop when it’s busy and there are eight customers there and suddenly say ‘Sorry, we don’t take EFTPOS’,” he said.
“They’re not going to come back to you, but if they know they can spend their cash at your store, they’re going to come and shop there because they know they can always get what they want when they go there.”
Rigney added that last week’s IT outage should be a huge wake-up call for cashless businesses across the country that continuing to rely on digital systems could affect future sales.
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Business NSW chief executive Daniel Hunter estimates the outage has cost businesses in the state about $200 million and has warned that compensation claims against CrowdStrike could come soon.
If the cashless trend continues, “this is just one example”
Cash advocates have flocked to social media to voice similar sentiments, believing the world is not yet ready to go completely cashless.
“This is just a glimpse of the future – if a software company can do this with a wrong update, imagine what governments could do when they go fully digital,” wrote one Australian.
“The cashless world is totally here to stay but no one understands that this is part of a global problem,” said another.
A third added: “People across Australia have been unable to buy food and essentials in recent days – what are people’s thoughts on going cashless?”
The vast majority of Australians prefer digital payment methods, with a Reserve Bank of Australia survey showing that only 13% of all transactions will be made with cash in 2022. The Australian Banking Association (ABA) also recently announced that mobile wallet transactions have increased 18-fold since 2019.
Despite this, a Yahoo Finance poll of more than 7,700 people found that 93% were concerned about the availability of cash in the country, while a separate survey of more than 24,000 readers found that more than 90% did not support Australia becoming a cashless society.
Politician Bob Katter is introducing new legislation that would require Australian businesses to accept and carry cash at all times, and he has warned that his proposed legislation is more important than ever.
“The CrowdStrike global outage shows why it is important to maintain a cash economy and highlights the dangers of relying solely on digital technology,” he said.
“I think it would be grossly irresponsible to go fully digital and take away cash, taking away our choice and freedom. All Australians should be able to access and use their cash at all times, not just during IT outages.”
“Look at how this event has thrown the world into chaos. It’s a wake-up call that the risks of a cashless society are far too high.”
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