(Electronic) money, (electronic) money, (electronic) money

How do you promote your campaign to phase out physical currency? Get an endorsement from ABBA, of co

Because of all the excitement over the Budget, one could be forgiven for missing the biggest story today, in the Washington Post:

“I can’t see why we should be printing bank notes at all anymore,” says Björn Ulvaeus, former member of 1970’s pop group ABBA, and a vocal proponent for a world without cash...

A cashless society may seem like an odd cause for someone who made a fortune on “Money, Money, Money” and other ABBA hits, but for Ulvaeus it’s a matter of security.

After his son was robbed for the third time he started advocating a faster transition to a fully digital economy, if only to make life harder for thieves.

“If there were no cash, what would they do?” says Ulvaeus, 66.

The Financial Times (£) has a more serious take on the same issue, which contains this interesting point:

Apart from anything else, there is a cost to handling cash, in terms of storing, guarding and shifting it. A 2010 report by Visa cited a European Commission estimate that the cost to society of all payment methods is the equivalent of about 2-3 per cent of Europe’s GDP, of which cash accounts for two-thirds. A 2008 study by the McKinsey consultancy estimated that in Europe €60bn-€100bn annually is spent on processing cash payments, a figure that includes the production of notes and coins, transport and security. A similar study by the Dutch central bank puts the price tag at €300 per family. A number of Dutch supermarkets are talking about moving exclusively to cashless payments by 2014, in part to get away from cash handling costs. The motivation is the same for governments.

Given we were talking about the downside of transaction taxes this morning, it's worth bearing in mind that transaction costs have the same problem. If someone doesn't buy something because they don't have the cash on them, that is a net loss in welfare – both the potential buyer and potential seller are worse off than if the transaction had gone ahead. As anyone who has ever actually been in that situation knows.

Gimme, gimme, gimme a card after midnight. Credit: Getty

Alex Hern is a technology reporter for the Guardian. He was formerly staff writer at the New Statesman. You should follow Alex on Twitter.

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Michael Gove definitely didn't betray anyone, says Michael Gove

What's a disagreement among friends?

Michael Gove is certainly not a traitor and he thinks Theresa May is absolutely the best leader of the Conservative party.

That's according to the cast out Brexiteer, who told the BBC's World At One life on the back benches has given him the opportunity to reflect on his mistakes. 

He described Boris Johnson, his one-time Leave ally before he decided to run against him for leader, as "phenomenally talented". 

Asked whether he had betrayed Johnson with his surprise leadership bid, Gove protested: "I wouldn't say I stabbed him in the back."

Instead, "while I intially thought Boris was the right person to be Prime Minister", he later came to the conclusion "he wasn't the right person to be Prime Minister at that point".

As for campaigning against the then-PM David Cameron, he declared: "I absolutely reject the idea of betrayal." Instead, it was a "disagreement" among friends: "Disagreement among friends is always painful."

Gove, who up to July had been a government minister since 2010, also found time to praise the person in charge of hiring government ministers, Theresa May. 

He said: "With the benefit of hindsight and the opportunity to spend some time on the backbenches reflecting on some of the mistakes I've made and some of the judgements I've made, I actually think that Theresa is the right leader at the right time. 

"I think that someone who took the position she did during the referendum is very well placed both to unite the party and lead these negotiations effectively."

Gove, who told The Times he was shocked when Cameron resigned after the Brexit vote, had backed Johnson for leader.

However, at the last minute he announced his candidacy, and caused an infuriated Johnson to pull his own campaign. Gove received just 14 per cent of the vote in the final contest, compared to 60.5 per cent for May. 


Julia Rampen is the editor of The Staggers, The New Statesman's online rolling politics blog. She was previously deputy editor at Mirror Money Online and has worked as a financial journalist for several trade magazines.