Cash and Crises

In an era marked by growing global uncertainty, the future of cash is at a critical juncture. As digital payments and financial technologies rapidly evolve, the role of cash is being redefined. However, the focus should not merely be on adapting the cash cycle to these changes, but on proactively shaping it to ensure preparedness and resilience for the challenges ahead.

In a proactive move, the EU recommends every household assemble a 72-hour survival kit, including essentials like food, water, medicine, and cash.

Ever since the Russian invasion began on 24 February 2022, the role of cash has emerged as a critical factor in maintaining economic resilience and supporting the population during this tumultuous period.

As we commemorate the 80th anniversary of the liberation of Auschwitz, it is essential to reflect on the stories of survival and resistance in such harrowing conditions. The role of money—whether in the form of camp-issued Lagergeld, bartered bread, or smuggled valuables—highlights the resourcefulness and humanity of those who endured the unimaginable.

A new paper analyzes the role of a well-functioning cash infrastructure for the stabilizing role of cash and the resilience of cash cycles. It highlights the critical role of the 4 A's - access, availability, acceptance, and affordability - as crucial building blocks of a robust cash infrastructure.

After exceptional growth during the Covid-19 pandemic, global cash demand was negatively impacted by the return of inflation in 2022. Early figures for 2024, indicate that demand is picking up. As central banks vigorously tackle inflation, the precautionary demand for banknotes in the increasingly uncertain world will likely grow. .

Elsewhere on the Web provides updates and links to articles related to cash, money and payments curated on the web.

Regional conflicts, ramping inflation, national debt crises, and the resurgence of monetary sovereignty all contribute to reshaping the world’s currencies.

Over the past few months, outages have brought down card payments in France (Wordline), Spain (Redsys), the U.K. (HSBC), Colombia (Bancaída), Uruguay (Fiserv) and now Australia (Wordline), to name but a few. Lloyds of London has warned that a major cyberattack on the global payments system could cost the world economy USD3.5 trillion. Can cash come to the rescue?

During the Israel-Hamas truce, a ton of NIS200 banknotes totaling $50 million was transported from the north to the south of Gaza to ease the economic plight of the population.

Most Palestinians remain unbanked despite the Palestinian Monetary Authority’s efforts to promote digital payments. Cash withdrawals are the biggest component of e-wallet transactions in the West Bank and Gaza.

In October, Hurricane Otis caused widespread devastation in the Pacific port of Acapulco. Mexican authorities and banks launched an effective plan to restore cash access.