Moving Beyond Neutrality: Now is the Time for Action

In September Franz Seitz and Gerhard Rösl published a paper laying out the challenges and risks faced by cash in countries moving to being less cash societies ¹. It is a tour de force providing both facts and arguments about what can be done. It provides the context and the arguments for the future of cash discussions heard at every conference this autumn – ATMIA, Coin, Retail Branch Transformation, High Security Print.

Overview

The paper argues that cash continues to have a critical role both generally and, in particular, at a time of crisis.

Declines in cash usage are often the result of supply side actions, many of which originate from government or central bank. Given that central banks take the ‘profits’ of cash while placing many of the costs on the private sector and that the role of cash has societal welfare benefits beyond its direct functions, central banks should move beyond being neutral to support cash.