Cash connects people

The U.S. penny, a symbol of American commerce since 1793, is disappearing amid unprecedented turmoil. The Treasury’s decision earlier this year to halt penny production, driven by cost-saving measures has left retailers, consumers, and policymakers scrambling.

With the rise of geopolitical tensions, formal international monetary flows are increasingly restricted, leaving communities in isolated or sanctioned regions dependent on informal financial networks. The case of North Korea underscores the critical role of cash in sustaining these flows.

As France braces for a nationwide day of action dubbed “Bloquons tout” (“Block everything”), a striking feature of the protests is the call for citizens to withdraw cash from banks and use it instead of cards. This tactic, reminiscent of past grassroots movements like the Yellow Vests, aims to disrupt the financial system and send a message to both the government and major banks.

Despite predictions of a cashless society, cash remains vital across all age groups. New ECB research reveals older adults prefer cash for transactions, but young adults pay with cash at roughly the average rate and keep cash reserves. The perceived importance of cash is rising for all!

Cash is making a comeback! Recent data shows a shift from decline to plateau in cash payments. Despite digital growth, cash remains essential in our payment systems.

Estimating the number of banknotes in circulation globally is a significant challenge. Some countries do not publish the data while others only do so irregularly. Furthermore, central banks follow different practices with regard to the inclusion of lost, destroyed or unredeemed notes. The biggest discrepancies result from the inclusion or not of certain denominations such as older, unused or withdrawn denominations. The study concludes that there are significantly more than 900 billion banknotes in circulation worldwide, significantly more than the 550 billion cited in various industry papers.

In a new book 'The Power of Cash,'Jay Zagorky highlights the benefits of cash, from privacy to national security. To ensure future demand, we must expose children to cash early. Advocacy groups should focus on educating youth through classroom activities and contests.

Cash remains vital in Germany despite declining usage. A Bundesbank study reveals its importance for reliability, inclusion, and education. While digital payments rise, cash's unique benefits ensure its continued relevance.

Beyond technicalities, cash serves as a unifying force in society that should not be underestimated.

A penny for your thoughts? The humble penny is more than just a coin—it's a symbol of American history and thrift. As debates about its future continue, let's explore why every penny counts.

Elsewhere on the Web provides updates and links to articles related to cash, money and payments curated on the web. This month, Bulgaria and Mozambique see cash in circulation increase whereas the in UK cash usage rebounds as shoppers use it to help them budget. India is halting its move towards a cashless society to embrace financial inclusion for all.

The Chinese New Year, celebrated globally, is marked by the tradition of giving red envelopes filled with money, symbolizing good luck and prosperity. This custom leads to a significant surge in cash demand, prompting financial institutions to implement innovative solutions to distribute the red envelopes. The fusion of tradition with modern banking practices highlights the dynamic nature of this cultural celebration.