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

28 Pages Posted: 5 Apr 2023

See all articles by Tanai Khiaonarong

Tanai Khiaonarong

International Monetary Fund (IMF)

David Humphrey

Florida State University

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 We view the value of cash withdrawn from ATMs, or as a share of all payments, as a more accurate and timely measure of cash use compared to the standard measure of currency in circulation, or as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

Suggested Citation

Khiaonarong, Tanai and Humphrey, David, Measurement and Use of Cash by Half the World's Population. IMF Working Paper No. 2023/062, Available at SSRN: https://ssrn.com/abstract=4403782 or http://dx.doi.org/10.5089/9798400238703.001

Tanai Khiaonarong (Contact Author)

International Monetary Fund (IMF) ( email )

700 19th Street, N.W.
Washington, DC 20431
United States

David Humphrey

Florida State University ( email )

423 Rovetta Business Building
Tallahassee, FL 32306-1110
United States
850-294-7896 (Phone)

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