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Insights and Expertise

Why cash still underscore its enduring significance amidst technological
advancements.
matters in today's Support for pro-cash legislation

Recent discussions and legislative initiatives reflect a
economy growing acknowledgment of cash's crucial role in ensuring
financial inclusivity and security. Pro-cash legislation has
been gaining momentum across the United States, with
several states and cities implementing or considering laws
to protect the use of cash as a form of payment, according
to the ATM Industry Association.
Such measures aim to combat discrimination against cash
users and promote equitable access to goods and services,
contributing to a more inclusive society.

According to a 2021 survey by Morning Consult,
approximately 35 percent of Americans who rely on cash
for transactions are typically younger, from low-income
backgrounds, or belong to minority communities. The
movement toward pro-cash legislation also reflects
broader concerns about privacy and consumer choice in
financial transactions (see https://bit.ly/3M31MOf).
Cash as an inclusive tool

For millions, the phrase "no cash accepted" signifies more
By Jim Petit than inconvenience; it represents exclusion from essential
services and economic participation. This transition
Giesecke+Devrient toward a cashless society risks widening the digital
divide, exacerbating existing inequalities. Cash serves as
s we move into an even more digitized world, a lifeline for vulnerable communities, offering autonomy,
where digital transactions dominate and privacy and reliability in financial transactions.
mobile payments are on the rise, it might seem
A like physical cash is becoming less important. It remains crucial for financial inclusion, especially for those
But if we look closer, cash still plays a crucial role in our without digital banking access or who prioritize financial
economy. It offers advantages like resilience, accessibility privacy. In areas with unreliable internet or during crises,
and security that digital methods can't always provide. cash provides a dependable payment method, ensuring
continuous access to goods and services. Maintaining cash
As finance and technology change, it's important to as a payment option supports marginalized groups like
recognize that cash remains essential, not just as a backup the elderly, low-income individuals, and undocumented
option (see https://bit.ly/46P0gJo). immigrants, preventing further exclusion.
Cash usage across the United States
Embracing a diverse range of payment options is essential
Despite a gradual decline in its use for consumer for a financial ecosystem that accommodates everyone,
payments, cash remains pivotal in everyday transactions regardless of their technological proficiency, according
across the United States. For example, approximately 20 to reporting from the Evans School of Public Policy and
million households rely on cash as their primary payment Governance and NCR Atleos.
method, particularly among those who are unbanked
or underbanked and individuals earning under $25,000 Cash for budgeting and security
annually. Cash also plays a unique role in personal finance. Its
tangible nature fosters better financial literacy and
Recent findings from the Federal Reserve's 2024 Diary of responsible spending habits. Individuals tend to spend
Consumer Payment Choice highlight that cash serves as a more mindfully when using physical currency, leading
trusted store of value and a dependable backup payment to improved budget management and financial decision-
option, especially in uncertain times (see https://bit. making.
ly/46NRc7C).
When using cash, people feel the loss more immediately
Similarly, Canada demonstrates a robust affinity for cash, compared to using credit cards, where the pain is delayed.
where transactions valued at over $117 trillion in 2022
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