France launches Access to Cash Review
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In Sweden, lawmakers are debating a proposal which would force banks to provide cashMoney in physical form such as banknotes and coins. More services to their customers. In the UK, the Access to Cash Review was commissioned as a response to growing concerns about whether people can use or access cash in an increasingly digital society. In the US, several states are legislating against stores and restaurants, which refuse to accept cash on the basis that it discriminates those who need or prefer to pay in cash. In France, the central bank along with the government is launching an initiative to ensure equal access to cash throughout the territory.
“The Banque de France will never drop cash”
“The Banque de France will never drop cash.” said Governor François Villeroy de Galhau.“The freedom for the French to choose a payment instrumentDevice, tool, procedure or system used to make a transaction or settle a debt. More is a central element of trust in moneyFrom the Latin word moneta, nickname that was given by Romans to the goddess Juno because there was a minting workshop next to her temple. Money is any item that is generally accepted as payment for goods and services and repayment of debts, such as taxes, in a particular region, country or socio-economic context. Its onset dates back to the origins of humanity and its physical representation has taken on very varied forms until the appearance of metal coins. The banknote, a typical representati... More” he added. The net issuanceThe value or units of banknotes (or coins) issued by a central bank over a period, minus the equivalent withdrawn from circulation during the same period. A positive net issuance expresses an increase in circulation during the period. More of cash grew by 7.5% in 2018, versus 5% in the euroThe name of the European single currency adopted by the European Council at the meeting held in Madrid on 15-16 December 1995. See ECU. More zone.
Avoiding bank desertification
The main aim of the initiative is to ensure the continuity of cash services throughout the country. As in many mature economies, commercial banks have accelerated branch and ATM closures. At the end of 2018, there were just under 55,000 ATMs in France – down from 57,500 at the end of 2015. This represents 815 ATMs per million inhabitants, slightly below the European average of 846 ATMs. According to the central bank, there is no overall issue with ATM distribution as 99% of the population can reach an ATM in less than 15 minutes. But there is a risk that remote and rural communities may face a “bank desertification”. There are frequent reports in the French media, of small towns petitioning against the closure of the local ATM.
Alternative distribution channels
The central bank will be discussing with banks as well as with the cash supply chain their mid-term 2020-2025 strategies. It will also be looking at alternative distribution channels such as cash-back or the ‘NickelMetal used in the manufacture of coins. More accounts’ – owned by BNP Paribas – which enable consumers to carry out banking transactions at news agents. The Post Office which has the largest network with 17,000 branches and 7,700 ATMs could also play a more important role in the future.
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