Cashless Society

A FINANCIAL PARADIGM SHIFT THROUGH SOCIAL NETWORKING

FINANCE CONFERENCE- 2011

Author: Manish Parihar Faculty of Marketing Saraswati Institute of Engineering & Management Po. Rajpur, Dist. Mehsana 382740, India

Co-author: Dr. Sarla Achuthan Director B.K. School of Business Management Gujarat University, Ahmedabad

Contents
Objective Introduction to cashless society Type of research Review of literature Findings and conclusions

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 The objective of this study is:

To explore prominent social media platforms and other online technologies that are being used for the creation and use of virtual currencies

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Type of research

Exploratory and based on secondary data only

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Review of literature

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Introduction to Cashless Society

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Cashless Society envisaged way back in 1887 by Edward Bellamy

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Are we there yet..?

Not yet. But we might not be far..

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Plastic Money

Introduced in the 1949s by Diners Club

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Online Funds Transfer

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Pros & Cons of a cashless society

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Pros: Clean wallet Tax the underground economy Exposure of corruption Eradicate counterfeiters Promote business efficiencies

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Cons: Assault on family privacy Impulse buying Hackers and security issues Big brother is watching

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Introduction to social media

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Blogs
More than 20 crore blogs exist on the internet..

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 Wikipedia the open source online encyclopedia, has over 15 million articles. More than 1700 new articles are added on Wikipedia every hour!

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Surprisingly, 78% of these articles are non-English.

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y YouTube has become the second largest search engine in the world after Google
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eBooks
y Kindle eBooks outsold paper books in 2010

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Facebook
It took radio 38 years to reach 50 million users. TV took 13 years; internet took 4 years, Apple iPod took 3 years to reach the same number of users. But social networking leader, Facebook, added over 200 million users in less than a year!
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Facebooks launch of virtual currency

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Second Lifes virtual currency: The Linden Dollar

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Living a virtual life..

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 There are more than 6500 profitable businesses in Second Life and new ventures are cropping up all the time. On just one day more than US$ 650 000 (330 000) was spent by Second Life residents in 24 hours.

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 Exchange, auction, buy/sell virtual goods Helps reduce illicit trade in virtual goods Operates through users PayPal accounts and takes a 10% cut Currently its a $200 million market..!

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 Bitcoin is a de-centralized digital currency created in 2009 Also called crypto-currency Each bitcoin divisible upto 8 decimal places 1 bitcoin = 9.58 $ (as of today)
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As of August 2011, there are over 7.1 million bitcoins in existence.

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Other technologies on the horizon..

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Google Wallet

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Micro-chips embedded in body

A high profile club in Spain, implants micro-chips in its VIP member

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Bio-metric scanners

Bio-metric scanners for entry at an amusement park in US

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Source: http://www.infowars.com/cashless_society.htm

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Findings and conclusion

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 Facebooks game credits and Second Lifes Linden dollars are already a reality and millions of dollars worth of transactions are being done in the virtual world. Bitcoins are also in circulation though its widespread use will take some time. Newer technologies promise to change the financial landscape
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Further Research
This paper is just an eye-opener to the fabulous world in which social media is fundamentally changing our lives. A formal research into this area would be the next logical step.

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