Impact of cashless society on the economic growth in Malaysia

Abstract

For every economy, money is a critical medium of exchange. Money emerges as an intermediary and store of values to improve a barter system. Cashless finance endures utilization generally digital money or plastic without money or currency in papery appearance. The moderate of regulating economic activity endure possibly the massive motivator toward advance the digital economy. This research scrutinizes the progress of embrace cashless payment on economic development and growth of Malaysia. Due to rapid growth in the digital economy, electronic money transactions in Malaysia have increased significantly from in the last fifteen years. There is a positive trend in electronic money usage. The increases caused by the awareness of the society and the government that encourages in using electronic money. At the same time, the velocity of paper money in Malaysia tends to decrease during the same period. While there is a negative trend in the velocity of money, the money supply (M1) has increased in order to maintain an economic growth of the country.