What happens to the black market in the event of a cashless society?

We've been hearing lots about the idea of a one-world currency, which, as many people suggest, could invoke a completely cashless society where all assets and spending power is contained in a card.

Lets just assume something like that happens for a moment here, so we can consider what would happen to the black market.

I'm talking not only about drugs, although that will make up a big percentage of the black market as a whole, but there are of course many other items only available 'under the table', and I'm sure most of the people here have at some point bought something that could be considered to be 'on the black market'.

So my question is...... what would become the 'underground' currency in the event of a cashless society? Obviously gold or other metals would not work, as it would be inaccessible to the vast majority of people.

What are everybody's thoughts?

Im sure in a cashless society, there would be numerous ways to cover up the transfer of funds.
Its also possible that one doesn't wont to be a registered business to debit money from someone's balance. People will always need to be able to give money to others. ie Loans between friends, family, Buying someone's second hand tv of them etc.

We will come up with a currency backed by drug lords.

Honestly, if it is carried out as thoroughly as we've expected it to there wont be anything that could be accepted as "money". A barter system would probably be the best way to get around the cash free black market. Thats a really dificult question, great post though.

But who knows the restrictions put in place on trade should something like this happen. One could even argue that the existence of a black market would mean instant failure for a cashless society. People still have to attach value to a currency for it to work, regardless of its format. And if people can't get what they want, then isn't the currency worthless?

Funnily, I bet it would also be the most stable currency.

But seriously, the black market would not go away. There will probably some country out there that will stick with paper money and the black market will covert to that currency. Failing that, the black market will probably use something other than cash as currency, whether it be weapons or drugs, or will just make up its own cash system.

The black market is large, adaptive, and amorphous. As long as there is an official power that is bent on regulating the economy, whether it is something simple as imposing sales taxes or more complex as prohibiting drugs, there will always be a black market seeking to circumvent the powers that be. Getting rid of cash will just be another pathetic attempt to get rid of the black market.

reply to post by liketoknow

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That is an awesome question, never thought of that. IMO it would be laundering and goods being traded, but sure would raise the risk of being in the black market. Great question!

That is an interesting viewpoint, however I think the black market will be the essential part if not the building block of a new economy in the event of a collapse. If you want an historical example of this then look no further than the old eastern bloc countries, whose informal economies worked a damn site better than their official counterparts.

The percentage of GDP that can be attributed to the black market ranges from around 40% and higher in some African nations, to around 15% in countries such as Germany, France and the UK. I'm assuming the figures in the US are reasonably similar. In the event of an economic collapse that percentage becomes the major influencing factor on a country's economic condition.

Therefore, the PTB are not trying to remove the black market as it makes up too much of a country's GDP.

However, none of this gets me any closer to answering my original question.

A black market does not require cash to operate or exist.

Barter is the oldest form of trade, predating the existence of "Money"

Simple exchange of goods and services. If it once catches on in a modern society, it will become impossible to neutralize. Since the members of the society know that their wealth will be systematically taken away if they accept cash where barter was possible.

reply to post by Cyberbian

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i agree with cyber; we'd go back to a barter system. There would be no official currency.

Yes I would think it would be a barter system as cash would be worthless,can you imagine telling rich dude,I'll trade you 3 filet mignons and 2 NY steaks for your Ferrari

I agree that a barter system would come into play, but in order to facilitate a wider trade than there would have to be some object, some item that retains value and is accepted as currency, particularly for traditional 'black-market' items.

To me it seems, the real issue is the change in paradigm, we now believe there is the need of a black market because as the OP mentioned, we require certain "commodities" that are considered "Illegal"

If the money-less economy has gotten to a point where the "value" of things for instance depends or amounts on the quantity of "work" you can provide, then whatever you wanted could be available if you had the will for it.
Right now its your money the item that defines you, not who you are or what you are capable of doing or providing to the community, its everyman for himself.

Whats the most forbidden thing one could want??
stolen goods? drugs? people?? weapons?
we impose the value to our actions, society upholds some strange grip on our consciousness, we break free of that chain, and the world changes.

All the negative traits we show now are product of a broken society and way of being that hold the idea of things on a higher order of importance than the object itself.\

Barter will work in a cashless society just as well as it would work today. people arefree to use barter and most do not because the barter system is very inefficient. Currency and credit were created in order to make trade more efficient. How about you need some smokes and all you have is a horse? I for one do not want to go back to the prairie days.