Cash generates security

A new OECD paper highlights the importance of balancing digital innovation with the enduring need for cash. By adopting comprehensive policies and initiatives, governments can ensure that all segments of society have access to reliable and secure payment methods, fostering financial inclusion and stability in the digital age.

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.

Gisèle Pélicot, is a French woman who endured years of abuse at the hands of her ex-husband. While her ordeal primarily involved severe physical and psychological abuse, her story underscores the broader context of dependency and control that often includes financial abuse

Even if political and monetary reforms had a major impact during the second half of the 20th century, the main reason for issuing new banknote series or an upgrade has been the security enhancement of the notes. The constant efforts of the industry have provided good opportunities for this. The issuers can select between various substrates and use several different optically variable features to make the reproduction of the notes difficult.

Cash is essential in a well-functioning society, as it guarantees social cohesion, which is threatened by aggressive digitalisation, says Spanish pro-cash platform Denaria.

The media often overlooks the downsides of digital money services. A powerful narrative that exaggerates the benefits and conceals the downsides supports the growth of fintech in Africa.

The Cash Payments Act aims to keep cash accessible, available, and affordable in the Netherlands by mandating banks to provide essential cash services and securing continuity in cash transportation services.

Australia’s cash infrastructure has contracted sharply in recent years. Banks and retailers have reduced cash services, even in urban areas.

The end of the "cash era", announced by The Economist fifteen years ago, has not arrived. On the contrary, in a contactless but crisis-ridden world, cash is leaving wallets and taking refuge in mattresses.

Digital payments become a nightmare after losing your mobile phone, as I learned from two robberies in London last year.

Digital payments become a nightmare after losing your mobile phone, as I learned from two robberies in London last year. 

The Riksbank calls for urgent action to strengthen cash's position and access, to guarantee financial and social inclusion, and to ensure civil preparedness. Retailers should be obliged to accept cash as payment for essential goods. Banks should be obliged to accept consumer cash deposits.