Cash and crime

Slate tackles a topic I was considering writing on: would eliminating physical money change or reduce crime?

While saying that electronic funds would simplify tracking and auditing certain crimes for government authorities, the article offers this anecdote from the region:

Latin America already offers a glimpse of one such substitute mechanism in action. As its economy grows ever more fluid (most South and Central Americans bank on their phones, using mobile apps that offer accounting and brokerage services), people have turned to “stored value cards,” which hold a fixed amount of money and can be bought or sold like any other good. Since they don’t draw from a bank account—funds and data are maintained by the card issuers and accessed by scanning a magnetic stripe—these cards are much harder to track. In a cashless world, SVCs might join precious metals and gems as currencies favored for illegal transactions.

There are still too many people in Latin America lacking access to basic identity documents much less bank accounts to make a cashless society possible. But the presence of bank accounts and credit cards has reduced the amount of hard currency. 

There is probably a middle ground on this question that Latin America is approaching. For example, Mexico has banned large cash purchases to avoid drug money being used to buy cars, yachts and property. It's far from the cashless society and every cup of coffee being tracked electronically, but it's a reasonable policy given today's technology and the access the average citizen has to it.