Understanding Cash Usage Seminar

CashEssentials moderated an insightful seminar on February 19^th on the topic of “Understanding CashMoney in physical form such as banknotes and coins. More Usage”. Academics, central bank researchers, representatives of commercial banks and cash management companiesCompanies specialized in the logistical handling of cash including several of the following operations: transportation, storage, counting and processing, packaging, replenishment and servicing of ATMs. See Cash-in-Transit. More took part in lively discussions about how data is collected and observed as well as future challenges facing the payments industry.

Given the large amount of information shared during the full-day seminar, CashEssentials will be publishing some of the key highlights of these sessions in the coming months, so stay tuned for more information on the subject!

Topics focused on drivers of cash usage, demand for banknotes, 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 services and seigniorage, cash volume forecasting as well as more philosophical questions such as “will cash disappear?” and “does the transactional demand for cash matter?”

A question that seemed to resurface throughout the day was whether declining cash usage is truly driven by consumer demand, as alternative paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More methods claim, or whether it’s subtly driven by a generalised  trend of declining accessibility to cash and cash services (i.e. ATM and bank branch closures, cashless only shops, government imposed cash restrictions etc.). Although consumers generally express their desire to maintain the freedom to choose their preferred payment methodSee Payment instrument. More in a given context, when restrictions are imposed or when access is denied, does that not inherently challenge the very foundation of “choice”?

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