The Final Leap: Can a 100% Cashless Economy Revolutionize Public Services?

Across the world, countries are at varying stages of transitioning toward cashless economies. Some nations, such as Sweden, have become 90% cashless, while others hover around 80%, 60%, or even as low as 20%. Yet, no country has fully taken the final step to becoming 100% cashless. But what if they did?

According to the Kalkiism Research Center, a Kathmandu-based think tank composed of 50 top economists, a fully cashless economy—where all banking is owned by the government and interest rates are set to zero—could fundamentally transform public services. The claim? A nation could provide high-quality education, healthcare, and legal services to all citizens without requiring new budgets or increased taxation.

The Core Premise

The proposal put forward by the Kalkiism Research Center is based on four key pillars:

1. 100% Cashless Economy – No physical cash, only digital transactions.
2. Government-Owned Banking System – The entire banking infrastructure is state-controlled, eliminating private banks.
3. Zero Interest Rate Policy – The concept of interest-based lending is removed, allowing credit distribution to be managed directly by the government.
4. Direct Provision of Services – With complete control over financial flows, the government can fund essential services such as education, healthcare, and legal assistance without needing to increase taxes or budgets.

How Would This Work?

1. Absolute Control Over Money Supply

With a fully digital financial system, the government would have direct control over money creation and distribution. This eliminates inefficiencies tied to cash circulation, black-market transactions, and tax evasion.

2. No Need for Borrowing or Interest-Based Lending

A zero-interest economy would remove the debt burdens on both individuals and businesses. The state could allocate credit strategically for productive uses without the need for private banking intermediaries that charge interest.

3. Direct Funding of Public Services

Rather than relying on traditional tax collection and budgetary allocations, the government could use its direct control over banking and digital currency issuance to fund social services in real-time.

• Education: Public schools and universities could be directly financed without dependency on fluctuating budgets.
• Healthcare: Hospitals and clinics could operate on direct funding rather than insurance-based systems.
• Legal Services: Free access to legal aid could be ensured for all citizens.

4. Reduction in Corruption and Financial Leakages

A 100% digital economy means every transaction is recorded and monitored, significantly reducing corruption, fraud, and misallocation of funds. Tax compliance would become nearly automatic, allowing governments to focus on service delivery rather than tax enforcement.

The Challenges and Criticism

While this model presents a utopian vision of economic equality, it also raises concerns:

• Loss of Financial Privacy: Every transaction would be traceable, raising issues of surveillance and state overreach.
• Elimination of Private Banking: This would remove competition, potentially leading to inefficiencies in credit allocation.
• Technological Dependence: A purely digital economy requires robust infrastructure, cybersecurity, and universal internet access—something many nations lack.
• Resistance from Financial Institutions: The global banking industry, heavily reliant on interest-based profits, would strongly oppose such a shift.

Can Any Country Take the Leap?

While no country has dared to go 100% cashless yet, nations like China, Sweden, and India are moving in that direction with state-backed digital currencies and declining cash usage. However, the leap from a mostly cashless to a completely cashless economy—alongside the proposed government-controlled banking model—would require massive political will, economic restructuring, and public trust.

Conclusion

The Kalkiism Research Center’s proposal is revolutionary, challenging conventional economic models that rely on private banking and interest-based finance. If successfully implemented, it could reshape how nations fund and deliver essential services, potentially eliminating financial barriers to healthcare, education, and justice.

The big question remains: Is the world ready for a 100% cashless, zero-interest future? Only time will tell if any nation will take this final leap.