Global outage sparks major cashless warning: 'Wake up call'

Cash advocates believe last week's global IT outage proves why it's important to always have physical money on hand. The glitch from security company CrowdStrike impacted 8.5 million devices that had the Windows operating system installed, affecting supermarkets, banks, fuel stations, transport systems, airports and other major infrastructure services.

Some businesses were forced to only accept cash until the outage was rectified, which saw many customers turned away because they rely on digital forms of payment. Bradley Rigney runs a butcher shop in Tasmania and told Yahoo Finance this proves why cash will always be king.

"I think people don't want to lose their identity, and they still want to have some say in who they are how they handle a business and how they go about their lives," he said.

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The Inglis River Meats owner has noticed more customers have been paying with cash in the last few months because of constant card machine outages.

He said when the EFTPOS system goes down, it can be massively "detrimental" for a business like his.

"It's uncomfortable when people are busy and they come into the shop, and you get eight customers here, and all of a sudden you say, 'Hey, look, we're sorry we can't do EFTPOS'," he said.

"They're not going to come back to you, but if they know that they can use cash in your business, well, they'll come there and shop, because they know that every time they go there they can get want."

Rigney added that last week's IT outage should serve as a major warning sign to cashless businesses across the country that their future sales could be impacted if they continue to rely on digital systems.

Business NSW chief executive Daniel Hunter estimated the outage cost businesses in the state around $200 million and warns compensation claims could soon come in against CrowdStrike.

'This is just a taste' if cashless trend continues

Cash advocates have flocked to social media to echo the same sentiment and believe the world is not ready to be completely cashless.

"Just a taste of the future. If this can be done by the software company screwing up an update, imagine what the Governments will be able to do when we are fully digital," wrote one Aussie.

"A cashless world has been settled once and for all anyone not see this is part of the problem globally," said another.

A third added: "So with people not able to buy groceries and essentials over the last couple of days, pretty much Australia-wide, what do the people say now about going cashless?"

An overwhelming majority of Aussies prefer to use digital payment methods, with the Reserve Bank of Australia finding only 13 per cent of all transactions in 2022 were with cash. The Australian Banking Association (ABA) also recently declared mobile wallet transactions have increased 18-fold since 2019.

Despite this, a Yahoo Finance poll of more than 7,700 people found 93 per cent are worried about the availability of cash in the country. Another survey of more than 24,000 readers revealed more than 90 per cent wouldn't support Australia becoming a cashless society.

Politician Bob Katter is trying to introduce new legislation to force Aussie businesses to always accept and carry cash. He warned his proposed bill is now more important than ever.

"The global CrowdStrike outage shows why keeping a cash economy alive is crucial and highlights the dangers of relying solely on digital tech," he said.

"I believe it's woefully irresponsible to go fully digital and take away cash, thereby taking away our choices and freedoms. All Australians should always be able to access and use cash, not just during IT outages.

"Just look at how this event has brought the world to a halt! This is a wake-up call that the risk of a cashless society is too high."

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