Sunday, June 16, 2019

Philadelphia Bans Cashless Stores; May Threaten Crypto Industry

Just like what they say: good things must come to an end, and Philadelphia starts their process now.

State Bans Cashless Stores

According to the report of Wall Street Journal, starting on July 1, Philadelphia state would no longer entertain cashless based businesses and stores as a proposal against these businesses were made to the law on March 7.

As stated in the newly enacted law, all stores that do not accept cash as one of its mode of payments will be subjected to a pay a fine that can raise to $2,000. However, businesses like parking garages or lots, hotel accommodations, rental car companies and Costco– that requires an online payment for membership, would be exempted from the said law due to the security for their financial charges on their customers.

Different Reactions On The New Law

As usual, not all citizens of Philadelphia agrees with the concept of the new law. As explained by one of the top officials in the state’s Chamber of Commerce, the unwillingness of Philadephia to participate on cashless stores may bring the state into severe damage as development would be delayed for their place when in talks with technology and advanced business.

More than this, cashless companies also argued that cash slows down transactions on their part due to manual counting and usually harms their staffs that duties at night.

On the contrary, supporters of the law stated their opinion regarding the matter. They said that cashless stores demean poor people since one requirement to pay on these businesses are credit or debit cards– that normally were only given to people who have a stable flow of money on their part.

Amazon Go May Go To Danger

Although the debate is still ongoing with the terms on the new law, one major company found this as an unfair process since their business were all out cashless and queue-less.

Amazon Go, that just recently made their stores public, had a lot of worries regarding the law. However, the city of Philadelphia already answered their queries and said that they are still allowed to do business since they require membership. Still, Amazon Go expressed their disapproval with the state’s law.

Not Good For Crypto

Unfortunately, another major industry may be harmed with this regulation which is the virtual currencies or cryptocurrencies.

As reported, if you want to start a business that only accepts crypto in the state, the chance that it will be considered as an illegal store may occur due to the law.

Which by means, the adoption of crypto all over the city may be postponed as cash turns out to be a requirement to do business in Philadelphia.

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