The central banks across various economies are striving towards the digitization of the domestic currency market in general and following various methods to move towards the goal of a cashless economy.

The word cash less economy is a misnomer as no central bank in the world can afford to rely completely on the digital payment mechanisms and do away with cash. However, the amount of dependency that they have on cash can be reduced to the extent that it negates the black economy, increases accountability, increases the reach of governments to provide the subsidies to the actual needy segment of the economy without dealing with the middlemen there by reducing cost and increasing the financial inclusion of its citizens.

Countries have been using the current method to usher in the cash less economy which basically means carrying out the transactions through a wallet or using the cards through the Point of Sale Terminal using either a domestic scheme or an international scheme or a combination of both. To carry out an effective strategy of drive towards the cashless, economies have to think in terms of reducing the effective cost of carrying out a transaction (financial intermediation cost and infrastructure maintenance cost) while not compromising on the security and usability. However, the current methods employed does not look to be very efficient in cutting the cost and governments have to step in to subsidies the cost to improve adoption amongst the consumers and merchants (e.g. what happened in India recently).