Call to Action: British Government is protecting the future of cash
This post is also available in:
In March 2019, the independent Access to Cash Review concluded that “It’s no longer good enough to see cashMoney in physical form such as banknotes and coins. More as just as a commercial issue. It needs to be treated as a core part of the UK’s infrastructure.” The decline in access to cash becomes particularly problematic when an estimated 2.2 million people – including the elderly, vulnerable and those in rural communities – are still reliant on cash.
In an attempt to guarantee the future of cash and ensure its availability for years to come, British Chancellor Philip Hammond announced last 3 May 2019 that plans are to be set in place to secure the nation’s access to cash by establishing a task force of cooperative efforts. The government is looking at:
- Establishing the new Joint Authorities Cash Strategy Group (JACS) – chaired by the Treasury and bringing together the regulators and Bank of England – to provide comprehensive oversight of the overall UK cash infrastructure
- Supporting the Bank of England’s work to develop a new wholesale cash distribution system to ensure cash is being distributed as needed across the country
- Developing a new coinA coin is a small, flat, round piece of metal alloy (or combination of metals) used primarily as legal tender. Issued by government, they are standardised in weight and composition and are produced at ‘mints’. More checking and validation framework to remove counterfeits from circulation and stop them from ending up in people’s pockets
- Continuing to support new digital methods of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More while safeguarding access to cash, especially for those who need it
The announcement follows that made last spring of a Call for Evidence on Cash and Digital Payments in the New Economy, which would further the government’s understanding of the trends impacting the way people pay for goods and services. The responses received considered the importance of cash as a symbol of independence, an important budgeting tool and as a way that elderly or vulnerable people can access social opportunities. Its overall findings concluded that despite the decline of cash usage in recent years, it remains a dominant payment methodSee Payment instrument. More in British society.
Not too long ago, consumer groups, lobbyists and organisations called on the Government to respond to the country’s reduced access to cash. With UK citizens eager to protect cash by voicing out their concerns, the Government were all ears and responded correspondingly. “Technology has transformed banking for millions of people, making it easier and quicker to carry out financial transactions and pay for services…but it’s also clear that many people still rely on cash and I want the public to have choice over how they spend their moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More.” the Chancellor states.
Natalie Ceeney CBE, Chair of the Access to Cash review, carries the same sentiments, expressing how “if we sleepwalk into a cashless society, millions of people will be left behind.” Undoubtedly, building a sustainable cash infrastructure is necessary in our digital-transitioning world considering that it’s a payment method accessible to all.
Read more:
Chancellor’s letter to the Chair of the Treasury Committee
Cash and Digital Payments in the New Economy: Call for Evidence
Cash and Digital Payments in the New Economy: Summary of Responses
This post is also available in: