Cash is efficient

The "Shaping a New Reality of Cash" conference in Warsaw delivered four lessons: cash delivers measurable value exceeding its costs, its distribution infrastructure is crumbling for reasons unrelated to demand, resilience must be built in normal times, and advocacy should sell sugar, not fear.

In a new paper 'Beyond the cost debate: A multidimensional approach to quantify the value of cash for society' Julia Pitters and Franz Seitz develop e framework to quantify the societal value of cash, measuring resilience, privacy, inclusion, financial self-control, and competition. In Germany, it amounts to approximately 1.2% of German GDP, exceeding its costs.

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.

In a new paper, Gerhard Rösl and Franz Seitz, argue that the stabilizing function of cash—especially during crises—must be preserved. However, this requires confronting not only the visible but also the hidden costs of cash and digital payments alike.

The Banque de France, OeNB, and Banco de Portugal form a strategic alliance to secure cash sovereignty. The alliance forges resilient banknote production, blending innovation with tradition to safeguard the euro’s future in an unstable world

A new white paper, Solving the ATM Paradox: A Policy Roadmap for the Future of Cash, co-authored by Guillaume Lepecq and Matt Sykes, exposes the alarming decline of ATM networks worldwide—despite rising demand for cash—and proposes concrete solutions to safeguard access to cash for all.

Despite digital payment advancements, cash remains essential for many globally, preferred even where its use is minimal. It serves as a precaution, store of value, and is crucial during crises.

While the media frequently report on ATM and bank closures in mature economies, the industry is simultaneously experiencing a surge of innovation. Driven by evolving needs of consumers, the ATM landscape is transforming to enhance accessibility, convenience, and security.

A new paper analyzes the role of a well-functioning cash infrastructure for the stabilizing role of cash and the resilience of cash cycles. It highlights the critical role of the 4 A's - access, availability, acceptance, and affordability - as crucial building blocks of a robust cash infrastructure.

Visa and Mastercard will pay $197 million to settle a case brought by millions of consumers who withdrew cash from ATMs and accused the companies of anti-competitive behaviour.

A US-based merchant is suing Apple, Visa, and Mastercard for allegedly conspiring to thwart competition for point-of-sale card services, leading merchants to pay inflated fees for credit and debit transactions.