Cash is also a store of value

Critics like Oliver Bullough or Ken Rogoff argue high-denomination banknotes only serve criminals. This study analyzes Y2K, 2008 financial crisis, and COVID-19 data, proving they're vital for emergency cash access when citizens urgently need physical money during global uncertainties and financial system failures.

Cash in Canada remains resilient says a new Bank of Canada Survey. Its use at the point of sale remains stable, holdings are growing, and public perception of cash is increasingly positive—a testament to its enduring role in economic resilience and inclusion.

Cash is making an unexpected comeback in Australia, defying narratives of its decline. A Reserve Bank study reveals its resurgence, driven by trust, accessibility, and resilience—challenging assumptions about a cashless future.

In just five years, Brazil accomplished what many nations only dream of: it built a public digital payment system so compelling that it rewrote the rules of payments. What does this mean for cash?

From 1998 to 2025, global banknote demand grew consistently, surged during crises, with regional variations—Africa’s consistent high growth contrasts with more modest growth in Europe—highlighting the dual role of cash as a payment instrument and a store of value.

Banknotes remain a cornerstone of national health security, ensuring resilience, accessibility, and trust. Cash protects societies from digital vulnerabilities while promoting financial inclusion for all citizens, particularly during emergencies when offline options are critical.

According to a new BIS brief, cash in circulation has stabilised globally in relation to GDP, indicating a steady demand for cash as a store of value. Cash withdrawal volumes have declined significantly, driven by supply-side factors, notably the shrinking cash infrastructure. Despite the decline in withdrawal volumes, the average value of cash withdrawals has increased.

Cash remains a cornerstone of the US financial system, serving as a primary instrument for some, a reliable backup for others, and a store-of-value for millions proving its unique attributes – universal acceptance, anonymity and cost-efficiency - are yet to replicate.

Cash persists in the euro area—not just for small purchases, but as a trusted liquidity buffer. While digital payments rise, the dual role of cash endures, reflecting deep-rooted habits and a key component of trust .

A detailed study reveals a stunning truth: the global volume of banknotes in circulation has nearly tripled over the past two decades. This article takes you on a fascinating journey through the evolving landscape of currency denominations, from 2004 to 2024. By meticulously estimating the actual number of banknotes in circulation, the research uncovers the hidden factors driving this unexpected surge.

Gresham’s Law states that “bad money drives out good,” meaning people store more valuable money and spend less valuable money when both circulate at the same face value. It helps explain why cash persists as a store of value even as the use of cash for payments declines.

Global banknote demand is rebounding post-pandemic, returning to pre-2020 trends. The introduction of new high-denomination notes has slowed, yet cash remains vital as a store of value. Cash infrastructure must adapt to declining transactional use and rising precautionary demand.