Measurement and Use of Cash by Half the World's Population

Abstract

The use of cash for payments is not well measured. We view the value of cash withdrawn from ATMs, or as a share of all payments, as a more accurate and timely measure of cash use compared to the standard measure of currency in circulation, or as a ratio to GDP. These two measures are compared for 14 advanced and emerging market economies. When aggregated, the trend in cash use for payments is currently falling for half the world’s population. Such a measure can help inform policy decisions regarding CBDC and regulatory decisions concerning access to and use of cash.

Keywords: Cash, payments, access to cash, central bank digital currency, cash use, ATM cash, aggregate Currency value, value of cash, use of cash, Currencies, Monetary base, Purchasing power parity, Stocks, Payment systems

JEL Classification: E41, G21, D23, E42, E50, F31, G23