U.S. Congressman Donald M. Payne, Jr. of New Jersey introduced a bill on July 26 to protect U.S. currencyThe 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 as a payment instrumentDevice, tool, procedure or system used to make a transaction or settle a debt. More for goods and services.  The Payment Choice Act would make it illegal for retail businesses to reject cashMoney in physical form such as banknotes and coins. More for in-person retail transactions at stores across the country.  The bipartisan bill has 28 co-sponsors.

“There are too many stores and businesses that want to reject American cash in favor of digital payments,” said Rep. Donald M. Payne, Jr.  “But cash is the only option available for millions of Americans to pay for food, housing and other essentials.  In addition, I have serious concerns about the safety and privacy of the data that companies are collecting from consumers during routine purchases.  Besides, there are few things more American than cash.  A few years ago, we were fighting over who should be represented on our bills.  Now, it seems companies are more than ready to get rid of them entirely.”

Financial InclusionA process by which individuals and businesses can access appropriate, affordable, and timely financial products and services. These include banking, loan, equity, and insurance products. While it is recognised that not all individuals need or want financial services, the goal of financial inclusion is to remove all barriers, both supply side and demand side. Supply side barriers stem from financial institutions themselves. They often indicate poor financial infrastructure, and include lack of ne... More, Privacy, and Resilience

Rep. Payne, Jr. introduced the bill to protect American currency due to several issues concerning digital payments.  In 2019, 6% of U.S. adults were unbanked, meaning they did not have a checking, savings, or 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 market account at all, and 16% of U.S. adults were underbanked, meaning they had a bank account but also used alternative financial service products such as money orders, check cashing services, pawnshop loans, auto title loans, payday loans, paycheck advances, or tax refund advances. Currently, there are 55 million Americans who lack a bank account or credit card and need to use cash to pay for their necessities.  These Americans will be left out of the economy completely if cash is banned.

Privacy is another concern when customers use digital payments.  Data collection is a $200 billion industry, and recent company data breaches in the U.S. and worldwide have revealed private information on millions of customers.  In addition, cash is the only way to pay for items during a natural disaster.  If a hurricane or other catastrophe were to knock out a power grid anywhere in the country, Americans would not be able to pay for critical, life-saving supplies to protect themselves and their families.

Some States Have Imposed the Acceptance of Cash

The Federal Reserve states that “There is no federal statute mandating that a private business, a person, or an organization must accept currency or coins as paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More for goods or services. Private businesses are free to develop their own policies on whether to accept cash unless there is a state law that says otherwise.”

In recent years, several cities such as New York, San Francisco, Berkeley (California), and Philadelphia, and the states of New Jersey, Colorado, and Washington, D.C. have enacted laws and implemented policies to protect cash users in retail payments and unbanked customers who rely on cash. Massachusetts has required businesses to accept cash since 1978. High-profile national retail chains that stopped accepting cash in recent years — such as Amazon Go stores and the fast-food salad chain Sweetgreen—reversed their policies after facing criticism for excluding shoppers who rely on cash.

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