Statistics of numerous countries worldwide indicate that the demand for cashMoney in physical form such as banknotes and coins. More has been steadily growing over the past years, sometimes reaching unprecedented levels. Yet, the share of transactions made in cash have remained constant over the same period, suggesting that consumers are using paperSee Banknote paper. More 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 for other purposes.
In the UK, the demand for cash has grown extremely rapidly since December 2016. Today, the value of banknotes in circulation amounts to £83 billion, or £1,200 per inhabitant. However, studies indicate that people have on average £77 in cash at home and in their wallet, suggesting that a share of the population is stockpiling extremely large amounts of money. Indeed, experts agree to say that an increasing number of consumers are not using cash as a transaction tool but as a store of valueOne of the functions of money or more generally of any asset that can be saved and exchanged at a later time without loss of its purchasing power. See also Precautionary Holdings. More, which was actually its historic function before World War I. The same findings apply to the US and the Eurozone, where the demand for cash grew by an annual 6%.
This hoardingThe term refers to the use of cash as a store of value. However, the term has a negative connotation of concealment, and is often used in the context of the war on cash. See Precautionary Holdings. More trend was triggered by the 2008 financial crisis, where it was made clear that no one is immune from bankruptcy – not even central banks. The crisis severely damaged consumers’ trust in financial institutions, encouraging them to pull their money out of the banking system by fear of further downturn. In addition, the extremely low interest rates currently in force make bank deposits relatively unprofitable. In the UK, the soaring rise of banknotes in circulation suggests that Britons are unsure of the consequences Brexit will have on the economy, experts say.
Victoria Cleland – Chief CashierInitially, the person who is responsible for the safe, its opening and closing, and the contents that are safeguarded inside it. Nowadays, at a central bank, the person who is responsible for matters related to the treasury and cash. Their signature would usually appear alongside others on the banknotes issued by the bank. More at the Bank of England – added that cash is also used as a budgeting tool. Indeed, various reports indicate that people tend to spend less when paying with tangible money. In tough economic times, it is thus common to see more people relying on cash. In the UK, around 2.7 million Britons rely mainly on paper money, of whom 1.5 million are unbanked.
Nevertheless, the circulation of large amounts of cash raises concerns about criminality and counterfeiting. As a result, central banks strive to remain one step ahead of fraudsters with increasingly sophisticated security features. For instance, Britain’s new banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More series is made of polymerA substrate used in the printing of banknotes, made of biaxially oriented polypropylene (BOPP) polymer. Polymer banknotes were first introduced in Australia and are widely used around the world. More, a modern material that is extremely resistant and practically impossible to reproduce. By investing in this new series represents, the Bank of England is sending out a strong message: that it is well aware of cash’s usefulness and bright future, regardless of the diversification of paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More instruments.
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