Has the Era of Money Ended?
Between Environmental Burden and Digital Transformation
By Engineer Mohammad Bashar Al-Khatib
In a world facing escalating climate crises, the discussion about money is no longer purely economic — it has also become environmental. The question is no longer just how we use money, but whether we still need it at all, especially if it carries a continuous environmental impact.
The production of paper and metallic currency is not environmentally neutral.
Paper banknotes made from cotton fibers require significant amounts of water, energy, and chemicals during processing and printing.
Metal coins depend on mining — a high-emission activity due to the extraction and smelting of metals.
Additionally, the continuous transportation of cash between banks and ATMs consumes fuel and increases the overall carbon footprint.
Some central banks, such as the Bank of England and the Reserve Bank of Australia, have introduced polymer banknotes that last longer and reduce the need for frequent reprinting. While this helps mitigate environmental impact, it does not eliminate it entirely.
Even studies from institutions like Suomen Pankki and De Nederlandsche Bank suggest that the environmental difference between cash and digital payments is not drastic, since digital systems rely on data centers and infrastructure that consume large amounts of energy.
Cryptocurrencies such as Bitcoin have faced widespread criticism due to the significant energy consumption associated with mining processes. Major economic media outlets, including The Economist and The Wall Street Journal, have explored this debate from the perspective of environmental sustainability.
Therefore, whether money is physical or digital, it is not environmentally cost-free.
If money — in all its forms — requires resources, energy, and extensive infrastructure, a deeper question emerges:
Do we actually need a system built around monetary intermediation?
In the era of artificial intelligence, smart systems, and blockchain technology, it is possible to imagine an economic model based on:
Direct resource management instead of financial mediation
Distribution guided by need and efficiency
Reduced reliance on printing, transportation, and energy-intensive digital mining
In such a model, the goal would not be to improve the form of money, but to reduce dependence on it altogether.
Money is no longer merely a medium of exchange — it has become a resource-consuming system, whether in physical or digital form. While financial institutions attempt to reduce environmental impact, the fundamental question remains open:
Should we improve money… or move beyond the concept entirely?
The true challenge may not be paper currency or digital code, but our ongoing reliance on a system that consumes resources to manage value — at a time when the world urgently needs to reduce consumption rather than complicate it.
Written by
Engineer Mohammad Bashar Al-Khatib
Mechanical Engineering & Renewable Energy
