'The use of cash isn’t dying, it’s flourishing'

Discussion in 'Getting Ahead: Careers, Finance and Productivity' started by Bliss, Nov 22, 2017.

  1. Bliss

    Bliss Well-Known Member

    By Dan Kopf
    November 22, 2017


    Reports of cash’s demise have been “greatly exaggerated.” That’s the message of new research from the Federal Reserve Bank of San Francisco.

    Researchers examined cash use in 42 countries; they found that between 2006 and 2016, the amount of cash in circulation as a share of GDP actually
    rose in 41 of them. “Cash in circulation” includes all cash in the hands of the public, including individuals, banks, and other businesses.

    The 42 countries in the study make up 75% of the world’s economy. The chart below shows the difference in cash growth and GDP growth for a set of these countries.

    The researchers believe that worldwide low interest rates, which means you don’t gain anything by keeping money in a bank, partly account for cash’s increased popularity. Another major factor may be distrust in financial institutions following the 2008 global financial crisis.

    The banks of Sweden, the only country with reduced cash use, actively promote digital bank transfers and charge for the use of checks. There is also a “cultural stigma against cash” in Sweden, according to the researchers, with many Swedes associating cash with crime.

    Still, in most countries, due to its convenience and reliability, cash is surprisingly alive and well.

  2. Soulthinker

    Soulthinker Well-Known Member

    Still,when I go to Sweden I still use cash regardless.
  3. Soulthinker

    Soulthinker Well-Known Member

    The Third World use phone cash since their money is next to being worthless. Some of them use the US Dollar.
  4. RicardoCooper

    RicardoCooper Well-Known Member

    They've been trying to make cash go away for decades. They didn't reckon with underground economies. Cash is going nowhere
  5. Madeleine

    Madeleine Well-Known Member

    Kenya is really good at phone banking I hear. They pay via phone even at the local vegetable market. But I think they still use Kenya Shillings not US Dollars.
  6. Soulthinker

    Soulthinker Well-Known Member

    Yes,it is called M-Pesa.

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