Why cash still matters in today’s economy
As we move into an even more digitized world, where digital transactions dominate and mobile payments are on the rise, it might seem like physical cash is becoming less important. But if we look closer, cash still plays a crucial role in our economy. It offers advantages like resilience, accessibility, and security that digital methods can’t always provide. As finance and technology change, it’s important to recognize that cash remains essential, not just as a backup option.1
Cash usage across the U.S.
Despite a gradual decline in its use for consumer payments, cash remains pivotal in everyday transactions across the U.S. For example, approximately 20 million households rely on cash as their primary payment method, particularly among those who are unbanked or underbanked and individuals earning under $25,000 annually. Recent findings from the Federal Reserve’s 2024 Diary of Consumer Payment Choice highlight that cash serves as a trusted store of value and a dependable backup payment option, especially in uncertain times.
Similarly, Canada demonstrates a robust affinity for cash, where transactions valued at over $117 trillion in 2022 underscore its enduring significance amidst technological advancements.
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