A digital banking nightmare unfolded for thousands of Australians on Tuesday, leaving them locked out of their accounts. The ANZ mobile app and internet banking services crashed, causing widespread frustration and highlighting the vulnerabilities of our increasingly digital financial systems. But this is just the beginning of a larger debate.
Customers were unable to log in, transfer funds, or even check their balances. The app displayed an apologetic message, while the bank's digital service status page cited issues with 'Payment Processing and Intra-Day Reporting,' leading to payment delays and balance update problems. The outage reportedly began around 12:30 PM that day.
Fortunately, ANZ swiftly resolved the issue, but not before causing considerable inconvenience. A spokesperson confirmed the resolution, apologizing for the disruption. This incident followed a major web blackout the previous day that impacted popular apps and platforms worldwide, including Snapchat and Afterpay. That disruption was caused by a problem with Amazon Web Services.
This latest ANZ crash has ignited a fierce debate about the risks of a cashless society. Many Australians expressed concerns, questioning the reliability of digital systems and the potential loss of financial autonomy. One user commented, "Happening so often and they say digital and cashless is the way forward." Another added, "This is why we don't want to become cashless."
And this is the part most people miss... The timing of the ANZ outage is particularly relevant, coinciding with the Albanese government's plan to protect Australians' right to pay with cash. However, this plan has been met with criticism, with consumer advocates arguing it could ironically accelerate the move towards a cashless economy. The draft legislation, released last Friday, appears to have significant loopholes.
The proposed rules would only require large supermarkets and major petrol chains to accept cash, and even then, only for purchases under $500. Smaller businesses, government agencies, and most retailers would be exempt, allowing them to continue refusing cash payments without penalty. Jason Bryce, leader of the Cash Welcome campaign, criticized the mandate, stating it's "full of loopholes."
Under the draft regulations, supermarkets could potentially claim small business status to avoid the requirement altogether. Businesses can also claim exemptions if handling cash is deemed 'too costly or too difficult.' This creates a legal loophole for retailers to reject cash. Mr. Bryce further explained, "If retailers can claim it's too hard to accept cash, banks will make sure it's hard and cash will disappear."
Treasurer Jim Chalmers previously promised consumers would always have the option to pay with cash. However, the current proposal excludes essential items like medicines, housing, and utility bills, according to Mr. Bryce. Financial Services Minister Daniel Mulino stated the regulations would require fuel and grocery retailers to accept cash for in-person transactions up to $500, with exemptions for small businesses earning under $10 million annually. Mr. Mulino said, "We recognise that Australians are increasingly using digital payment methods, but there will be an ongoing place for cash in our society." He also noted that cash payments for bills are available at Australia Post outlets.
But here's where it gets controversial... The trend towards a cashless society is further underscored by the reduction in physical banking infrastructure. Banks have removed nearly 5,000 ATMs across Australia in just five years, citing the high cost of restocking. The number of bank branches has also declined significantly, falling by 155 in the past financial year and by 1,564 over five years.
What are your thoughts on this? Do you believe the government's plan adequately protects the right to use cash? Are you concerned about the increasing reliance on digital banking? Share your opinions in the comments below!
