The role and future of cash

This study analyses some fundamental questions about the future of cash. According to the DNB Payments Strategy 2018-2021, the decreasing use of cash is putting pressure on the cash infrastructure. This raises all kinds of questions about the future of cash.1 Until recently, the downward trend of cash use was mainly a result of citizens' own choices, but since the coronavirus crisis they have also increasingly been forced to pay electronically. In this study we investigate the changing role of cash, the extent to which cash is still needed and how we should deal with its decreasing use. We also investigate whether this decreasing use jeopardises the independence of people who depend on cash, and whether the resilience and, consequently, the smooth operation of the payment system would be reduced if the use of cash as a back-up in the event of disruptions in electronic payments was lost Our starting point is DNB's current policy, which focuses on the general acceptance of cash, the availability of a network for depositing and withdrawing cash, measures to safeguard the reliability and security of cash, and reducing the cost of cash. This study ties in with the recent report on the position of cash by the National Forum on the Payment System (NFPS).2 The main stakeholders in the payment system are represented on this Forum to contribute to a socially robust, efficient and secure payment system. The present study builds on the cash trends described in the NFPS report, focusing on the importance of public money in physical and digital form, the significance of the specific properties of cash, the legal framework and the necessity of keeping cash easily accessible and available.