The truth is that the cashless policy is a policy meant to favour bank in the long run due to bank charges that will be deducted from account and that implies that Governmrnt are the one that will benefit from it due to tax that will be collected from the banks.
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I do concur with everything you wrote. If a person in your community would like to cut out banks completely, and instead use crypto as your bank account, then in order to go from fiat to crypto, you'll lose like 10 or 15% in the analog of depositing or withdrawing!