Cash and Crises

Cash helps civilians and refugees best during the Russian invasion of Ukraine.

In this ninth episode, James Shepherd-Barron sits down with Richard Wall, former Head of Currency at the Bank of Canada and chair of the International Association of Currency Affairs (IACA), to discuss who owns cash and what it would mean for society were it to be removed.

Crises such as the Covid-19 pandemic and the Russian invasion of Ukraine demonstrate the importance of a resilient cash cycle. Several countries are taking measures to further secure the supply of cash in times of crisis.

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

Digital payments dominate retail transactions in Sweden, but cash usage has not declined to irrelevance.

Several Colombian banks experienced system outages in December, generating customer malaise and evidencing the vulnerability of digital payment infrastructures.

A new BIS working paper examines the impact of the Covid-19 pandemic on cash and digital payments. The data suggest some effects reversed once lockdowns eased and mobility rebounded.

From pandemic to war, 2022 faced more than its fair share of shocks, demonstrating the essential role of cash for resilient monetary systems. More countries issued regulations to ensure future access to cash.

A massive winter storm caused widespread power outages across the United States. Cash demonstrated its resilience during the blizzard in the worst-affected Buffalo area.

As more central banks investigate and develop digital currencies (CBDCs), we look at the adoption and use of those launched and the implications for cash.

Ukraine has managed to secure its cash supply chain despite the war with Russia. Remittances have not increased sensibly, flowing to neighboring countries where refugees have settled.

After record growth in 2020, global demand for banknotes has returned to a normal situation. More recently, rising inflation and increasing interest rates have been negatively impacting cash balances. More concerning is the decreasing transactional use of cash, which puts pressure on the cash infrastructure. The cash community should make the case that cash is part of a critical public infrastructure, the maintenance and development of which should be financed accordingly.