Cash does not require a technology infrastructure

The French central bank will invest €220 million to modernize and expand its banknote printing facility, demonstrating strong confidence in the future of cash.

Last Friday, an internet outage disrupted debit card payments and banking services in Canada. Shops put up “Cash Only” signs, and many retailers lost sales revenue.

After being struck by the pandemic and now the cost of living crisis, Gen Z is embracing cash as an efficient budget management tool.

A Bank of Canada report evaluates access to cash amongst remote First Nation reserves. On average, the travel distance to the closest bank branch is 24 km, while the nearest white label ATM is 4.5 km away.

Bitcoin's use in payments remains limited in El Salvador, despite the government's massive marketing campaign - something no country has ever done for cash.

A new paper analyses the spatial distribution of ATMs and bank branches in Switzerland. On average Swiss residents have easy access to cash as 90% live within 2.7 km of an ATM and 3.7 km of a bank branch. Those who live more than 5 km from an ATM or bank branch account for 2.6% and 4.9% of the population, respectively.

Bitcoin became legal tender in El Salvador in September 2021. Since then, its volatility has worsened the country's precarious financial situation.

Consumer research shows that cash payments are firmly rooted in French society. Cash is an enabler of social connections and is the preferred form of payment at small shops and for charity.

The idea of digitising money has re-emerged every ten years since the 1990s, starting with e-money, followed by digital money and now central bank digital currencies. But digital payments do not require digital money, says Aleksi Grym.

Elsewhere on the Web provides weekly updates and links to articles related to cash and money, curated on the web. Last week, the focus was on how the Ukraine war triggered a run on cash in neighbouring countries.

Digital payments surpassed cash in Russia in 2018, and the central bank promoted them during the Covid-19 pandemic. Mobile and card payments operate with glitches since Western countries imposed sanctions following the invasion of Ukraine.

Ukrainians’ demand for cash has spiked during the Russian invasion. The National Bank of Ukraine moved to secure the cash supply and encouraged civilians to make cashless payments.