The recent proposal by France’s Justice Minister Gerald Darmanin to abolish cash payments has sparked a fierce debate on the future of money and security in an increasingly digital world. While Darmanin argues that digital transactions are easier to trace and thus can help combat crime, Ricardo Baretzky, President of CYBERPOL—the International Cyber Policing Organization—has issued a consistent warning against this move, highlighting critical flaws and grave dangers linked to artificial intelligence (AI) terrorism.
Digital Transactions: A Flawed Argument
Darmanin’s position rests on the premise that eliminating cash will reduce anonymity in financial transactions, thereby making it harder for criminals to operate undetected. However, Baretzky contends that this argument overlooks key realities about cybercrime and the evolving role of AI in criminal activities. “Digital transactions may be traceable, but this is a deeply flawed notion when considering the sophisticated trends in cybercrime and AI involvement,” Baretzky said.
The CYBERPOL president emphasized that a cashless society is vulnerable to two fundamental risks. First, once money exists purely in digital form, it can be irretrievably lost due to cyberattacks or system failures. Second, AI-enabled cybercriminals can manipulate or seize control of digital financial systems with devastating consequences. Unlike physical cash, which remains tangible and constant in value, digital money is susceptible to destruction or theft without any physical trace or recourse.
The Irreplaceable Value of Physical Cash
Baretzky illustrated that physical cash—such as a $1 bill—retains its value regardless of technological disruptions or cyber threats. “The only way to truly safeguard money is in real, touchable, and physical form,” he stated. This tangible nature of cash provides a security layer that digital currency cannot replicate, especially in an era where AI-driven cyberattacks are becoming more sophisticated and frequent.
AI Terrorism: An Emerging Threat
The concerns raised by CYBERPOL are underscored by growing evidence that AI technology is being weaponized by terrorist groups. According to reports from the United Nations Interregional Crime and Justice Research Institute (UNICRI) and the United Nations Counter-Terrorism Centre (UNCCT), AI can be maliciously used for terrorist purposes, including enhancing cyberattacks on critical infrastructure, spreading disinformation through deepfakes, and automating physical attacks using drones or self-driving vehicles.
Experts warn that while some AI-enabled terrorist capabilities remain low probability, the accessibility and rapid advancement of AI technologies increase the risk of such threats materializing. Terrorists have already exploited emerging technologies like virtual currencies and encrypted communications to finance and coordinate activities, and AI could amplify these risks.
Risks of a Cashless Society in the Face of AI Threats
A fully cashless economy could exacerbate these vulnerabilities. Cybercriminals and terrorists could exploit digital payment systems, which are inherently dependent on network infrastructure and software security. Any disruption—whether from natural disasters, cyberattacks, or AI-driven sabotage—could freeze access to funds, causing widespread economic and social turmoil.
Moreover, the traceability of digital transactions, often cited as an advantage, could paradoxically empower authoritarian surveillance and control, potentially punishing undesired behaviors or marginalizing vulnerable groups who lack access to digital infrastructure.
Balancing Innovation and Security
While the shift towards digital payments offers undeniable conveniences and efficiencies, the debate highlights the need for a balanced approach that considers technological risks and preserves financial autonomy. CYBERPOL’s stance advocates maintaining physical cash alongside digital options to ensure resilience against cyber threats and AI terrorism.
The call by France’s Justice Minister to abolish cash, though motivated by crime prevention goals, faces significant criticism from cybersecurity and counter-terrorism experts. The growing menace of AI-enabled terrorism and cybercrime exposes the fragility of a cashless society and the irreplaceable security that physical cash provides. As the world navigates the digital transformation of finance, policymakers must weigh these risks carefully to avoid unintended consequences that could jeopardize economic security and civil liberties.
