CashMoney in physical form such as banknotes and coins. More is facing increasing competition as a payment instrumentDevice, tool, procedure or system used to make a transaction or settle a debt. More from the likes of PayPal, Venmo, Square or Stripe. The paradox is that cash demand is increasing. But not for payments. Demand is driven essentially by its use as a store of valueOne of the functions of money or more generally of any asset that can be saved and exchanged at a later time without loss of its purchasing power. See also Precautionary Holdings. More.
On average, an American carries thirty dollars in his/her wallet. But one in twenty Americans save over $ 1,200 at home. And another $ 70 billion sit in bank vaults. According to research undertaken by the Federal Reserve in 2012, foreign demand for US 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 represents 50% of the value. And this is likely increasing.
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