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How has cash usage evolved in recent decades? What might drive demand in the future?

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  • Fish, Tom

    (Bank of England)

  • Whymark , Roy

    (Bank of England)

Abstract

Cash is often in the media spotlight. While some predict its impending demise, most people continue to use banknotes in their day-to-day lives. Although consumers are less likely to use cash for transactions than they were in the past, aggregate demand for banknotes is increasing. This article considers how cash usage has evolved in recent decades, how cash is used today, and why the Bank of England needs to prepare for a future where cash remains important.

Suggested Citation

  • Fish, Tom & Whymark , Roy, 2015. "How has cash usage evolved in recent decades? What might drive demand in the future?," Bank of England Quarterly Bulletin, Bank of England, vol. 55(3), pages 216-227.
    • Handle: RePEc:boe:qbullt:0178
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    File URL: https://www.bankofengland.co.uk/-/media/boe/files/quarterly-bulletin/2015/how-has-cash-usage-evolved-in-recent-decades-what-might-drive-demand-in-the-future.pdf?la=en&hash=4AA04C755C1B8BBDC70CE55CAD488E348FEDDAC5
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    References listed on IDEAS

    as
    1. Allen, Helen & Dent, Andrew, 2010. "Managing the circulation of banknotes," Bank of England Quarterly Bulletin, Bank of England, vol. 50(4), pages 302-310.
    2. Dent , Andrew & Dison, Will, 2012. "The Bank of England’s Real-Time Gross Settlement infrastructure," Bank of England Quarterly Bulletin, Bank of England, vol. 52(3), pages 234-243.
    3. Ali, Robleh & Barrdear, John & Clews, Roger & Southgate, James, 2014. "The economics of digital currencies," Bank of England Quarterly Bulletin, Bank of England, vol. 54(3), pages 276-286.
    4. McLeay, Michael & Radia, Amar & Thomas, Ryland, 2014. "Money creation in the modern economy," Bank of England Quarterly Bulletin, Bank of England, vol. 54(1), pages 14-27.
    5. Naqvi, Mona & Southgate, James, 2013. "Banknotes, local currencies and central bank objectives," Bank of England Quarterly Bulletin, Bank of England, vol. 53(4), pages 317-325.
    6. Ali, Robleh & Barrdear, John & Clews, Roger & Southgate, James, 2014. "Innovations in payment technologies and the emergence of digital currencies," Bank of England Quarterly Bulletin, Bank of England, vol. 54(3), pages 262-275.
    7. Guibourg, Gabriela & Segendorf, Björn, 2007. "The Use of Cash and the Size of the Shadow Economy in Sweden," Working Paper Series 204, Sveriges Riksbank (Central Bank of Sweden).
    8. McLeay, Michael & Radia, Amar & Thomas, Ryland, 2014. "Money in the modern economy: an introduction," Bank of England Quarterly Bulletin, Bank of England, vol. 54(1), pages 4-13.
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    Cited by:

    1. Richard Finlay & Andrew Staib & Max Wakefield, 2018. "Where's the Money‽ An Investigation into the Whereabouts and Uses of Australian Banknotes," RBA Research Discussion Papers rdp2018-12, Reserve Bank of Australia.
    2. McClintock, Ronan & Whymark, Roy, 2016. "Bank of England notes: the switch to polymer," Bank of England Quarterly Bulletin, Bank of England, vol. 56(1), pages 23-32.
    3. Miller, Callum, 2017. "Addressing the limitations of forecasting banknote demand," International Cash Conference 2017 – War on Cash: Is there a Future for Cash? 162912, Deutsche Bundesbank.
    4. van Eeghen, Piet-Hein, 2021. "Funding money-creating banks: Cash funding, balance sheet funding and the moral hazard of currency elasticity," International Review of Financial Analysis, Elsevier, vol. 76(C).
    5. Greenacre, Luke & Akbar, Skye, 2019. "The impact of payment method on shopping behaviour among low income consumers," Journal of Retailing and Consumer Services, Elsevier, vol. 47(C), pages 87-93.
    6. Nasir, Muhammad Ali, 2021. "Zero Lower Bound and negative interest rates: Choices for monetary policy in the UK," Journal of Policy Modeling, Elsevier, vol. 43(1), pages 200-229.
    7. Barrdear, John & Kumhof, Michael, 2016. "The macroeconomics of central bank issued digital currencies," Bank of England working papers 605, Bank of England.
    8. Simon Butler, 2019. "Criminal use of cryptocurrencies: a great new threat or is cash still king?," Journal of Cyber Policy, Taylor & Francis Journals, vol. 4(3), pages 326-345, September.
    9. Rösl, Gerhard & Seitz, Franz, 2021. "Cash and crises: No surprises by the virus," IMFS Working Paper Series 150, Goethe University Frankfurt, Institute for Monetary and Financial Stability (IMFS).
    10. Cassie Davies & Mary-Alice Doyle & Chay Fisher & Samual Nightingale, 2016. "The Future of Cash," RBA Bulletin (Print copy discontinued), Reserve Bank of Australia, pages 43-52, December.

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