Participants were asked whether they thought the situation of cash would improve or deteriorate over the next 10 years. The responses were almost evenly split: 54% were optimistic, while 46% were pessimistic. This probably reflects the current global uncertainty, driven by armed conflicts, climate changeThis is the action by which certain banknotes and/or coins are exchanged for the same amount in banknotes/coins of a different face value, or unit value. See Exchange. More, extreme weather-related disasters, geopolitical tensions, and shifting international trade patterns.
Participants were also asked if they believed they could personally influence the future of cash. An encouraging 76% responded positively, indicating they could proactively shape the future of cash. Only 24% believed they could not. The participants, representing central banks and the banknoteA banknote (or ‘bill’ as it is often referred to in the US) is a type of negotiable promissory note, issued by a bank or other licensed authority, payable to the bearer on demand. More industry, highlighted that while many countries are adopting policies supporting access to and acceptance of cash, more effort is needed to ensure its viability in the future.
CashEssentials extends its gratitude to Reconnaissance International for organizing an excellent event. Special thanks to Gerhard Roesl and John Winchcombe for sharing their insights during the seminar, and to all participants for their valuable contributions.
One of the key topics discussed during the seminar was the so-called “cash paradox”—the simultaneous decline in demand for transactional cash and the increase in precautionary or store-of-value demand. Measuring transactional demand or estimating the share of cash transactions at the point of sale remains a significant challenge.
During my visit to Bangkok, I had the opportunity to explore Wat Pho, the Temple of the Reclining Buddha. The temple complex houses Thailand’s largest collection of Buddha images, including a stunning 46-meter-long and 15-meter-high reclining Buddha covered in gold leaf. Visitors – including Buddhists and non-Buddhists – participate in a fascinating ritual: they purchase a bowl containing 108 coins for 20 baht and deposit one coinA coin is a small, flat, round piece of metal alloy (or combination of metals) used primarily as legal tender. Issued by government, they are standardised in weight and composition and are produced at ‘mints’. More into each of 108 bronzeA reddish–coloured alloy of copper and tin with a special sound and high level of resistance to deformation; it sometimes incorporates also small amounts of other elements such as zinc and phosphorus. More donation bowls, which symbolize the 108 auspicious characteristics of Buddha. The ritual is believed to bring good fortune while contributing to the temple’s upkeep.
This example illustrates multifaceted nature of the role of cash in society and the complexity of measuring cash transactions. Should this count as one transaction—the purchase of the bowl of coins—or 109 transactions—the purchase of the bowl and the donation of 108 coins? If digitized, this process could take two forms:
By addressing key issues like access, acceptance, and measuring the value and volume of transactions, the cash community can ensure that cash remains a vital and resilient component of the global monetary ecosystem.