Guillaume Lepecq

For years now, Sweden has been considered to be at the vanguard of the global race for the complete elimination of cash.  Sweden has seen a constant decline in the value of cash in circulation since 2008.  However, quite unexpectedly the downward trend was reversed in May 2018 and cash in circulation has been growing since.

A $2,000 tip in a restaurant illustrates the challenge in measuring the volume of cash transactions;

According to the State of e-Commerce in Southeast Asia 2017 White Paper, published by online shopping aggregator iPrice, cash is an important part of the online payments mix in South East Asia.

According to the Deutsche Bundesbank survey on "Payment behaviour in Germany in 2017", cash is by far the most widely used payment instrument and accounts for 74% of transactions in volume and 48 % in value.

The end of cash would have negative consequences on the relationship between citizens and government and between citizens and those entities who will be issuing and managing the new money systems.

In October 2017, the International Security Ligue became a partner of CashEssentials. Alf Göransson, Chairman of the International Security Ligue says, «It is high time for the industry to adopt a pro-active attitude towards the promotion of cash and support innovation within the cash cycle.»

The Governor of French Central Bank warned against the risks associated with payments innovation.

Idea bank of Poland expanded its fleet of cars fitted with ATMs from 4 to 18. The electric BMW i3s with cash-in, cash-out ATMs, can be ordered by smartphone. The service is particularly aimed at enterpreneurs and business owners who normally use cash deposit services, often after dark.

Coins play an important role in donations to charities.

Deutsche Bank Research shows that abolishing cash would not eliminate crime.

The President of Venezuela announces the demonetisation of the 100 bolivar note and triggers a severe cash crisis.

The Danish Central Bank has conducted a survey of the payment behaviour of Danish households in the Spring of 2017. The findings were published in December in 2017. The report concludes that while cash usage is declining and is expected to continue to do so in the future, Denmark is not becoming cashless and Danes will be able to use and hold cash in the future.

The paper attempts to reconcile the apparent contradiction between growing cash in circulation on the one hand and the decling relative share of payments made in cash on the other.

ESTA, the Association of Cash Management Companies, has responded to the EU public consultation on Cash Payment Limitations and concludes that cash payment limitations would contribute very little to the fight against terrorism. This is probably why none of the relevant counter-terrorism organisations, at national or international levels are proposing such measures.

The European Commission (EC) is asking for comments on a proposal for a Europe-wide Initiative on restrictions on payments in cash. ATMIA believes such limitations are against the public Interest; the interests of Europe economically; and the interests of the ATM industry.

The new ATMIA study on the role cash plays in financial inclusion “Access to Cash: the First Step toward Financial Inclusion” presents an international picture of the importance of cash and ATMs in reaching 2 billion financially excluded persons “As cash is the only form of payment devoid of any prerequisite conditions for access, efforts to liberate people from financial inclusion should, instead, encourage its use,” the paper states.

In 2015, cash was the most commonly used payment mechanism in the UK. 70,270 ATMs generated 2.8 billion withdrawals for an amount of £194 billion.