Like the prediction of paperless society upon us, a cash-less society is simply not in the cards of consumers! This is due to the fact of the following:
1. Cash is one of humanity's most successful ever technologies.
2. Cash spans 27 centuries.
3. The first attempt to substitute cash was the invention in the 15th century of cheques in the Netherlands.
4. Many more attemps followed such as credit cards, debit cards.
5. So far, all attempts to replace cash have failed!
Cash has unique and durable qualities, including being “human‐friendly”:
- It is valuable in itself and can function as a store or “shelter” of value
- It is fee‐free for consumers
- It is the most tangible and liquid form of money
- It carries certainty of acceptance as legal tender
- Its settlement is immediate – there is no settlement risk
- It has no credit risk attached to it
- It is a public asset regulated by the central bank, generating public tax
- It is anonymous and cannot be tracked (Big Brother is not watching you!)
- It is easy to access and easy to use ‐ it does not require technology or infrastructure
- It is universal – accepted almost anywhere on earth
- It is interchangeable with other cash, unlike most plastic cards which cannot be interchanged
- It has a fast transaction speed.
Cash is rated as cheapest and most reliable method of payment at point of sale by Canadian merchants. When you use cash, you will have 100% acceptance in Canada! Invisible credit amount and electronic numbers in your bank accounts do not give you the same sense of budgeting your money. After the great recession of 2008-2009, cash has been used by consumers as one of the budgeting tools in our pockets.