Events in India demonstrate that the impending death of paper money is a major opportunity for blockchain-based financial services companies. The chaos created by Prime Minister Narendra Modi’s drastic demonetization demonstrates the potential and danger of the cashless future.

Modi stunned Indians on November 8, 2016, when he went on TV and declared that the nation’s two most popular banknotes would be worthless within 50 days. All 500 rupee and 1,000 rupee notes were withdrawn from circulation and replaced with new bills.

Demonetization was designed to discourage terrorism, smuggling, organized crime, tax evasion, and counterfeiting, Modi claimed. Some government officials later admitted the move was done to force India into a cashless society.