Payments are A-Changin’ But Cash Still Rules

14 Pages Posted: 13 Mar 2018

See all articles by Morten L. Bech

Morten L. Bech

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures

Umar Faruqui

Bank for International Settlements (BIS)

Frederik Ougaard

Danish Financial Supervisory Authority

Cristina Picillo

Bank for International Settlements (BIS)

Date Written: March 11, 2018

Abstract

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

Bech, Morten L. and Faruqui, Umar and Ougaard, Frederik and Picillo, Cristina, Payments are A-Changin’ But Cash Still Rules (March 11, 2018). BIS Quarterly Review, March 2018, Available at SSRN: https://ssrn.com/abstract=3139217

Morten L. Bech (Contact Author)

Bank for International Settlements (BIS) - Committee on Payments and Market Infrastructures ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland
41612808923 (Phone)

Umar Faruqui

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

Frederik Ougaard

Danish Financial Supervisory Authority ( email )

Århusgade 110
2100 København Ø
Denmark

Cristina Picillo

Bank for International Settlements (BIS) ( email )

Centralbahnplatz 2
Basel, Basel-Stadt 4002
Switzerland

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