In a world where everyone is taking cash for granted and new digital payment methods are being heavily marketed, Loomis thought it was time to bring some perspectives to why cash is such an important part of the infrastructure around the globe. Cash is many things to many people, and we are certainly not alone in liking cash.
Here are 5 reasons we think why.
The COVID-19 virus has spread around the globe and affected us all. In times of uncertainty rumours also tend to spread and get stuck. One is that cash is spreading the virus and that alternative payment methods should be used. This has been denied by many authorities including, WHO, several national health authorities, the European Central Bank (ECB) and several national banks. In fact, studies show that porous surfaces tend to hold the virus less than hard surfaces such as metal and plastic.
Not everyone has access to bank accounts or the ability to use cards or cellphones. Social exclusion is one of the most highlighted risks if cash were to disappear. As an example, around 40 million people in Europe and 12 million in the US are outside the banking system. They have no opportunity to use digital payment methods. There are also plenty of other groups in society where cash is an essential payment method. Should we leave these people behind? We certainly do not think so.
Easy, cheap and safe payments that does not exclude anyone. Cash is a legitimate and trusted payment method and it does not cost extra to use. And on the contrary to what you might think, cash is increasing in society measured as cash in circulation globally.
Cash hinder private companies and governments to supervise every legitimate purchase you make. Are we ready for our identity to be linked to every transaction? Who will manage and protect these online identities? Many warn against putting IDs entirely in the hands of governments.
We are now living in times of crisis and central banks around the globe are eager to make sure that the cash availability is high. Why? Because we need redundancy in our payment system and cash is the perfect way to keep societies functioning in times of crisis.