According to the Bank of Canada, $80 billion banknotes were in circulation in 2015, representing an increase of $33 billion or 70% since 2004. The amount of cash in circulationThe value (or number of units) of the banknotes and coins in circulation within an economy. Cash in circulation is included in the M1 monetary aggregate and comprises only the banknotes and coins in circulation outside the Monetary Financial Institutions (MFI), as stated in the consolidated balance sheet of the MFIs, which means that the cash issued and held by the MFIs has been subtracted (“cash reserves”). Cash in circulation does not include the balance of the central bank’s own banknot... More has never been higher. However, cashMoney in physical form such as banknotes and coins. More transactions decreased from 7 to 5.5 billion over the same period.
President of Technology Strategies International Christie Christelis, who has been analyzing Canadian paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More trends for the last 20 years, has no clear explanation for this difference, but assumed that people might hoard more 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 than before. Another hypothesis is that the gray market economy might be more significant than expected, skewing statistics.
Besides, new technologies such as contactless cards and mobile payments may also have overshadowed cash momentarily as they generated enthusiasm among consumers. For instance, Apple Pay allows its customers to install their credit or debit card in their phone and assigned each device a unique number which is forwarded to the merchant. The customer authenticates himself by scanning his fingerprint.
If these mobile apps might seem more convenient than cash at first sight, they are however not trouble free. Indeed, fingerprints cannot be read if the screen is dirty or the customer’s hands are damp and such mobile payments cannot be processed everywhere as about 50% of Canadian retailers are not equipped with the required wireless NFC technology yet.
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