Friday, January 14, 2011

The allure of cashless society is strong within an environment of currency debasement. Gresham's law, the tendency of bad money drives out good, is becoming problematic for the monetary authorities around the globe. Many coin denominations are disappearing from circulation as their melt value rises above their face value. The problem of currency mismanagement, as reveal by changes in coins composition or elimination of often smaller denominations, would be more difficult to identify in a cashless, electronic currency based, society. Monetary management has more about what the public will accept rather than what’s good for the currency.