Cash payment is slowly but surely becoming a past, and for several reasons – one of them is the fact that cash slows down economic activities and makes grey economy sustainable as countries have very limited money flow possibilities, the experts say.
North Macedonia has recently limited cash payments to €500 stating combat against grey economy as one of the reasons for the decision. Journalists of Pobjeda asked state institutions, economists and bankers if Montenegro should follow the example of North Macedonia.
Representatives of the Ministry of Finance said that so far they hadn’t had any initiative on imposing limits on cash transactions. Secretary General of the Association of Banks, Mr Bratislav Pejaković, said that we should be ready for a new trend – of cash becoming totally outdated.
“North Macedonia has amended the Law on the Prevention of Money Laundering and Financing Terrorism in terms of specific restrictions. Instead of cash, people buying goods and services worth more than €500 must use cards only. Why? Because they want to reduce grey economy. Montenegro tends to adopt any positive practice but it doesn’t mean that we should impose more severe restrictions”, said Mr Pejaković.
He reminds that Montenegro is in the process of harmonization with the EU directives.
“Ministry of Finance and Ministry of Public Administration have initiated the program for electronic payment of administrative taxes. A working group has been formed, with the participation of Association of Banks and involvement of commercial and acquiring banks into the tariff segment and provision of the infrastructure of concrete project. In accordance with standards, software and POS (point-of-sale) terminals need to be certified”, said Mr Pejaković.
Mr Vasilije Kostić, professor at the Faculty of Management Studies, says that contemporary payment transactions are moving towards total cash eclipse.
Contemporary payment transactions follows dynamic changes in economic activities which are accelerated due to information and telecommunication technologies.
“Any slow-down has to be replaced with non-cash electronic means of payment. In this way, cash payment will soon become past. However, need for cash has its reasons and it will still be functional for some time. Needs are different in different countries as development level of a country determines the level of the disposable income of citizens and that determines the scope of transactions and their structure. It’s never too early to welcome something that is definitely coming”, said Mr Kostić.
President of the Assembly Committee on Economy, Me Predrag Sekulić, says it’s good that increasing number of citizens tend to use non-cash means of payment.
“However, I am not sure that imposing limits on cash payment would reduce grey economy. Besides, it’s very difficult to define the limit for cash payment. Those in grey zone will find a way to eschew this somehow”, says Mr Sekulić.
