Since the launch of 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, banknotes in circulation have increased by 133% in volume and 380% in value. The cost of cashAlthough banknotes are delivered to the citizens free of charge and their use does not involve a specific fee, costs are generated during their manufacturing, storage and circulation process, which are covered by different social agents (central banks, commercial banks, retailers etc). More which represents about half the costs of retail payments – whereas cashMoney in physical form such as banknotes and coins. More accounts for 60% of all retail transactions according to the G4S Cash Report 2016 Europe – has increased by 30% between 2002 and 2012, significantly slower than the number of notes and the overall value.
Nonetheless, the European Payments Council (EPC) calls for efforts to further reduce the cost of cash. According to the ECB study, The Social and Private Costs of Retail PaymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More Instruments, the overal cost of cash amounted to $65 billion in 2012.
The EPC recommends two key measures to achieve this goal:
The report suggests the establishment of a virtual cash infrastructure within the eurozone, enabling banks to access the services of any national central bank without practical obstacles such as packaging or cross-border transportation.
In particular, the EPC stresses the importance of Balance SheetA piece of paper or substrate of 800 mm by 700 mm, on which banknotes are printed. The “sheet to sheet” printing technique is the most widely used in printing of banknotes, but the roller printing technique also exists. More Relief Mechanisms which enable commercial banks to hold wholesale cash off-balance sheet and contributes to compensate the additional costs of 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 recirculationThe right to recirculate banknotes that have been checked for authenticity and sorted for fitness by banks and cash-in-transit companies. The right is normally based on rigorous rules established by the central bank. More.