Dutch Remain Positive about Cash

A survey carried out in February 2021 by the Dutch National Bank (DNB Cash) contained some good news for cash. In five years’ time over 70% of all age groups expect still to be using cash.

Expect to be paying cash 5 years from now (n=1,003) (Source: Panteia 2021).

Interestingly 76% of people always carry banknotes but 85% always carry coins. There was no data on why more coins should be carried.

The survey provides food for thought. In some countries a €100 banknote would be regarded as a lot of money, and so that 39% of people say they have used one in the last year is a surprise.

On the other hand, two years ago that figure was 45%. The drop may be explained by the €100 being hard to get hold of since it is not an ATM note and not usually stocked at branches. Equally it can be hard to spend the note because retailers are not keen on accepting it.

It appears that cash is held for transactions and so it is the low value notes that matter. 68% of people carry €5 notes. This means it is important that this low value note is issued by ATMs to meet the demand for it.

Trust

Confidence in the authenticity of euro banknotes remains high (© DNB 2021 v2).

The Dutch public have a high level of trust in their banknotes. Consequently only 31% check their authenticity. When asked unprompted to name a security feature, papermakers will be delighted to hear that 69% named the watermark, with the next nearest feature being holograms, which 39% knew.

Perhaps some of this trust in cash comes from the view that the notes are clean, the view of 82% with only 2% regarding them as dirty. On the other hand, 53% of people thought the €5 the least attractive note, with the €20 the most attractive (29%). One wonders whether the €5 is a ‘hard- working’ high velocity ‘settlement’ note which gets somewhat worn, while the €20 is the day-to-day ‘payment’ note.