The money used in a particular country at a particular time, like dollar, yen, euro, etc., consisting of banknotes and coins, that does not require endorsement as a medium of exchange. More in circulation is growing in the US. “The amount of currency in circulation has increased steadily for at least the past 20 years” says the report. As of December 2018, there were over 43 billion notes worth over $1.67 trillion in circulation.
However, some evidence suggests that Money in physical form such as banknotes and coins. More is used less frequently for payments. According to the Fed’s 2018 Findings from the Diary of Consumer Payments Choice , cash has seen its share in retail payments decline from 33% in 2015 to 30% in 2017.
The report identifies both positive and negative implications of the decline in transactional demand for cash.
On the positive side, it cites :
On the negative side, the counter-arguments are :
The author concludes “Cash has a number of advantageous features that has made it a simple and robust throughout most of human history. It is difficult to imagine conditions under which would be replaced entirely, and disappear from the economy, at least in the near future.”