From naked capitalism, July 22:
The mainstream media has, until now, played a key role in advancing the Global War on Cash — a war that began with no official declaration but in which propaganda, as with all wars, is a vital weapon.
Last week’s global IT outage appears to have shaken some British media outlets’ confidence in the idea of a fully cashless society. When a content update by the cyber-security giant CrowdStrike caused millions of Microsoft systems around the world to crash on Friday morning, bringing the operating systems of banks, payment card firms, airlines, hospitals, NHS clinics, retailers and hospitality businesses to a standstill, businesses were faced with a stark choice: go cash-only, or close until the systems came back online. From WIRED magazine:
This quickly caused chaos in Australia, whose government has explicitly encouraged businesses to go cashless. Pictures posted on social media showed card-only self-checkout registers at the grocery chain Coles displaying Blue Screens of Death (BSODs). Queues for human-run registers at Australian groceries stretched to the back of the store, according to local media. Some Australian marts simply locked their doors…
Starbucks—whose then-CEO said in 2020 was shifting “toward more cashless experiences”—appeared to have been particularly hard hit. One Kansas-based Starbucks worker posted a TikTok showing that the mobile order system was “completely down.” The machine that the store uses to print labels for cups was also not working. “It just comes out blank every time,” she said, gesturing to the label printer. She tells WIRED that some customers were “upset and very rude” when she tried to explain. A different Starbucks worker said on TikTok that she had to write down every order on sticky notes.
Richard Forno, a cybersecurity lecturer at the University of Maryland, tells WIRED that Friday’s outage demonstrates the vulnerability of our current cloud and internet infrastructure. “Software supply chains have long been a serious cybersecurity concern and potential single point of failure,” Forno says. “Given today’s events, with any luck, perhaps the world may finally realize that our modern information- and often cloud-based society is based on a very fragile foundation that’s not built for security or resiliency.” (A Microsoft spokesperson did not respond directly to this assessment.)
Here on NC, we have periodically discussed (including here, here, here and here) the hyper-fragility of our tightly coupled IT-based societies, particularly on the banking and payments side of things. In March, UK citizens had a foretaste of the inherent fragility of a cashless economy after the payment systems of the country’s two largest supermarket chains, Tesco and Sainsbury’s, went down on the same day. Then, as on Friday, cash provided a vital, albeit imperfect, fall-back mechanism for citizens and businesses.
Cash Does Not Crash
This is one of the most important arguments in favour of cash: the resilience it provides to a country’s overarching payments system. Put another way, cash does not crash. It does not fail in a power cut or seize up during a cyber attack or software outage (though, of course, ATMs might). By contrast, digital payment systems need a stable and continuous internet connection and power supply to process transactions.
This is a lesson central bankers in Sweden, one of the world’s most cashless economies, are apparently relearning....
....MUCH MORE
For what it's worth, a lady with a philanthropical bent who I tease as a "granola eating, Prius driving do-gooder" informed me yesterday that the homeless crowd she keeps tabs on seemed to be weathering the outages just fine though she later said the EBT system had not been affected and she feared that if it had been, crimes such as theft from vehicles would have increased as the hobos (their term, not mine) went in search of barter goods.