Payments are A-Changin’ But Cash Still Rules
14 Pages Posted: 13 Mar 2018
Date Written: March 11, 2018
Retail payment systems continue to become faster and more convenient. Yet, despite increased use of electronic payments around the world, there is scant evidence of a shift away from cash. As the appetite for cash remains unabated, few societies are close to “cashless” or even “lesscash”. In fact, demand for cash has risen in most advanced economies since the start of the Great Financial Crisis. This resurgence appears to be driven by store-of-value motives (reflecting lower opportunity cost of holding cash) rather than by payment needs.
JEL Classification: E40, E41, E42
Suggested Citation: Suggested Citation