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Understanding Cash Usage

Categories : Cash covers a broad range of transactions, Cash is also a store of value
September 9, 2019
Tags : Cash substitution, Demand, Financial inclusion, Store of value
Cash in circulation is growing in most countries at a faster pace than GDP. But what factors are driving demand for cash ?
Guillaume Lepecq

This post is also available in: Spanish

In February 2019, CashEssentials hosted a seminar in Athens bringing together central bank researchers, academics as well as payment professionals to further the understanding of cash usage.

Here are some of the key take-aways that were discussed during the seminar:

Many countries are recognizing that the decline in transactional demand raises major concerns in terms of financial inclusion, of the robustness of the payments infrastructure and in terms of competition. In that case, what measures can be adopted to reverse the trend?

One solution to ensure that cash remains widely used would consist in removing existing frictions on cash usage. Many of these frictions were introduced either to limit cash usage or to increase the quality or security of cash.

The report is available for download below.

This post is also available in: Spanish