News | Cash & Payment News

John Winchcombe

5 March 2021

4 min read

‘Ready, Steady, Go’? Results of the 3rd BIS Survey on CBDC

The Bank of International Settlements (BIS) received 65 responses to its latest Central Bank Digital Currency (CBDC) survey of which 21 were from Advanced Economies (AE) and 44 from Emerging Market/Developing Economies (EMDE). The results are published in BIS Papers 114, authored by Codruta Boar and Andreas Wehrli.

CBDC Surveys

John Winchcombe

5 March 2021

3 min read

CBDC Risks Becoming a Gigantic Flop

If Central Bank Digital Currencies (CBDCs) do not solve a real problem, then they will fail. In a recent paper by Peter Bofinger and Thomas Haas, Professor for Monetary Policy and International Economics and Research Associate and Chair for Monetary Policy and International Economics respectively at the University of Wurzbürg, they throw doubt on whether central banks have found a compelling need for CBDCs.

CBDC Digital CN

John Winchcombe

5 March 2021

2 min read

Change Needed For India’s ATMs

Relative to its population, India has few ATMs – 22 per 100,000 people, according to the World Bank, compared with 81 in China. It also has one of the lowest ratios of ATM cash withdrawals relative to cash in circulation, according to a June 2019 RBI report, 'Benchmarking India's Payment Systems'.

ATMs

John Winchcombe

5 March 2021

2 min read

Cardtronics Accepts NCR’s Offer

January’s edition of Cash & Payment News™ covered NCR’s bid for Cardtronics. NCR – which describes itself as ‘a technology provider for the financial, retail and hospitality industries’ – has now announced that it has entered into a definitive acquisition agreement to buy the company, paying $39 per share, valuing Cardtronics at $2.5 billion. NCR justifies this in its statement as accelerating its shift to ‘NCR-as-a-Service’ strategy, moving its mix of revenues across its business more to software, services and recurring revenue.

ATMs

John Winchcombe

5 March 2021

2 min read

Lack of Payment Competition Raises Costs

Mastercard has announced that the interchange fee on products bought online in the EU by British card holders will increase from 0.3% to 1.5%. Debit card fees will increase from 0.2% to 1.15%. This fee increase is justified because now the UK is no longer part of the EU, fees will be charged at the ‘inter-regional’ fee level rather than ‘intra-regional’ fee level.

Cards

John Winchcombe

5 March 2021

1 min read

CBDC Conference Speakers and Plans in Place

The CBDC Conference, 3-5 October 2021, will go ahead in Frankfurt, although the organiser is remaining flexible to put it online if need be. Registration comes with a ‘COVID-19 guarantee’ so that people can be confident about committing to the event.

CBDC Events

John Winchcombe

5 March 2021

3 min read

Future of Cash – Today’s Challenges, Tomorrow’s Opportunities

The last year has accelerated a number of payment trends, with the cash ‘paradox’ to the fore (cash in circulation up, cash transactions down). The Future of Cash conference laid out and explained the growing pressure on cash but also gave good data, examples and food for thought about opportunities for the future.

Events Future of Cash

John Winchcombe

5 March 2021

2 min read

Federal Reserve Survey Reflects Changing Cash Usage

In October 2020 the Federal Reserve’s national Cash Product Office (CPO), with the Federal Reserve Bank of Atlanta and Federal Reserve Bank of Boston, conducted the annual Diary of Consumer Payment Choice survey.

Cash Usage Country Profile Surveys

John Winchcombe

5 March 2021

2 min read

Dirty Money and the Demand for Cash

In IMF Working Paper 2020 255, entitled ‘Dirty Money: Does the Risk of Infectious Disease Lower Demand for Cash?’, its author Serhan Cevik – a senior economist with the IMF – looked at data from 133 countries between 1995 and 2017 to understand how people react to a rise in infectious diseases. Against his initial study he then ran a further five subsets of data to test his findings. After controlling for macroeconomic, financial and technological factors, the data was clear that a rise in infectious disease reduces the demand for physical cash.

Cash Usage COVID

John Winchcombe

5 March 2021

5 min read

Measuring and Understanding Foreign Demand for Euro Banknotes

The European Central Bank (ECB) study, 'Foreign Demand for Euro Banknotes', set out to identify the demand drivers for euro banknotes and to estimate the share of euro banknotes in circulation outside of the euro area.

Cash in Circulation Central Banks

John Winchcombe

5 March 2021

2 min read

CBDC Security and Convenience: a Major Challenge

Digital currency covers more than Central Bank Digital Currencies (CBDCs), it extends to all the digital solutions from Bitcoin to Diem. Digital currencies store balances in anonymous electronic addresses.

CBDC Staff Papers

John Winchcombe

5 March 2021

3 min read

Legal Status Needed for CBDCs

Central Bank Digital Currencies (CBDCs) are much talked about. The IMF has published a detailed paper – ‘Legal Aspects of Central Bank Digital Currency: Central Bank and Monetary Law Considerations’ – which explains the legal position of CBDCs and has investigated the position of 171 IMF members to see which are currently able to issue a CBDC. The paper will help central banks think through this element of their CBDC preparations.

CBDC

John Winchcombe

5 March 2021

4 min read

Pandemic Payment Patterns in the Netherlands

The Dutch National Bank (DNB) studied how an external shock, the COVID-19 pandemic, affected payments in the Netherlands, using an extensive payment diary that ran from January 2018 to October 2020.

Country Profile COVID

John Winchcombe

5 March 2021

5 min read

News in Brief

On 26 January the European Court of Justice (ECJ) gave its judgement on the Hessischer Rundfunk case.

ATMs Bank Branch CBDC

John Winchcombe

5 March 2021

5 min read

CashTech: Taking Cash Forward

This is the title of a new Cash Essentials paper. The paper considers the role cash plays in economic and social life, the challenges it faces and how innovation is improving the efficiency of the cash cycle. The paper includes the line, ‘the capacity for cash to change will be integral to its continuing success’, and it goes on to explore what the future holds.

Cash Management Free Future of Cash Free

John Winchcombe

5 March 2021

3 min read

CashTech News Round-Up

The Dhaka Tribune reports that between March and the end of November 2020, the number of Cash Recycling Machines (CRMs) increased from 266 to 684 in an attempt to make branches less crowded and to lower costs since less cash loading and replenishment of ATMs is needed, along with reduced cash movements, sorting and handling.

ATMs Cash Management

John Winchcombe

5 March 2021

5 min read

Cash – the ‘Anchor of Stability’ Which Needs Safeguarding

A recent working paper entitled ‘Institutional Hostility to Cash and COVID-19’ by economists Doris Neuberger of Germany’s University of Rostock and Eduardo Beretta from the Swiss Institute of Economics examines how the pandemic has boosted commercial incentives and government policies to nudge consumers away from cash.

Cash Usage COVID Future of Cash

John Winchcombe

5 March 2021

3 min read

A Changing Payment Landscape in Hong Kong?

The Hong Kong Monetary Authority (HKMA) monitors payments closely. During 2020 there were some interesting variations that HKMA will track in 2021. The priority for 2021 will be to monitor and understand what is happening across a range of indicators so that HKMA can manage the appropriate supply of banknotes.

Cash in Circulation Country Profile

John Winchcombe

5 March 2021

4 min read

UK Cash Under Pressure

LINK, the UK’s main cash machine operator, reported a 37% drop in the number of ATM cash withdrawals in 2020, a significant fall. But that is still £1.6 billion withdrawn each week - £1,500 for each adult. With nearly 8% fewer free-to-use ATMs and nearly 18% fewer pay-to-use machines, these figures are even more impressive. John Howells, CEO of LINK, the UK’s largest cash machine network, made the point that ‘the sharp decline in ATM use brings significant problems (the) drop in transactions places enormous strain on the cash infrastructure’.

Cash Usage Country Profile

John Winchcombe

2 Feb. 2021

2 min read

‘A Digital Euro is Due, if not Overdue’

Thus said Ralph Wintergerst, CEO of Giesecke + Devrient (G+D), to the Frankfurter Allgemeine newspaper before Christmas. G+D has invested significantly in this area to position itself for the future and to support its worldwide relationships with central banks. It is confident that cash will remain a core payment instrument but sees a future shift to Central Bank Digital Currency (CBDC).

CBDC

Latest News

‘Ready, Steady, Go’? Results of the 3rd BIS Survey on CBDC

CBDC Risks Becoming a Gigantic Flop

Change Needed For India’s ATMs

Cardtronics Accepts NCR’s Offer

Lack of Payment Competition Raises Costs

CBDC Conference Speakers and Plans in Place

Future of Cash – Today’s Challenges, Tomorrow’s Opportunities

Federal Reserve Survey Reflects Changing Cash Usage

Dirty Money and the Demand for Cash

Measuring and Understanding Foreign Demand for Euro Banknotes

CBDC Security and Convenience: a Major Challenge

Legal Status Needed for CBDCs

Pandemic Payment Patterns in the Netherlands

News in Brief

CashTech: Taking Cash Forward

CashTech News Round-Up

Cash – the ‘Anchor of Stability’ Which Needs Safeguarding

A Changing Payment Landscape in Hong Kong?

UK Cash Under Pressure

‘A Digital Euro is Due, if not Overdue’

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