Cash is easy to use

ATMs and bank branches have declined in South Korea since the mid-2010s. The central bank has spearheaded CashTech initiatives to improve the public’s access to cash.

Cash is the second most used payment instrument in South Korea. Digital payments proliferate, leaving vulnerable groups behind.

In Japan, seniors are the main targets of card scams worth hundreds of millions of dollars. The police is proposing to limit the use of bank cards for people aged 65 and over.

A Dutch central bank report stresses that cash is especially important for people with low digital literacy, people with a specific type of disability, and people with low incomes.

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

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.

An ECB survey shows that cash is the preferred payment method for 24% of companies, ahead of other alternatives. Most companies also perceive cash as a cheaper, faster and more reliable payment instrument.

The House of Lords’ Economic Affairs Committee report concludes there is no convincing case for a central bank digital currency (CBDC). While a CBDC may provide some advantages, it could pose significant challenges for financial stability and the protection of privacy.

By removing frictions and the pain to pay, digital payments increase consumer spending, particularly on unhealthy foods.

Kevin Dowd, Professor of Economics and Finance at Durham University. gives a lowdown on the value of cash amidst the ongoing controversy over proposals to abolish it. Whatever the merits of digital money, the use of cash confers important benefits that digital money does not.

Mexico’s government is considering banning cash at gasoline and toll fee stations in a country where only 37% of adults hold a bank account while 75% of the population is underbanked.

A temporary power outage at Target that left customers unable to process their payments reminds us how a society driven by digital payments alone, could in fact cost the consumer more.