GET Stock QuotesNews18 APP
News18 English
Powered by cricketnext logo
»
1-min read

Cash is Far From Dead and Use is Rising: Bank for International Settlements

Cash in circulation has actually risen in recent years, from 7 percent of GDP in 2000 to 9 percent in 2016, although it has fallen in Sweden and a few other places.

Reuters

Updated:March 11, 2018, 11:48 PM IST
facebookTwittergoogleskypewhatsapp
Cash is Far From Dead and Use is Rising: Bank for International Settlements
People use ATM machines at a bank in Hong Kong, China on January 29, 2018. (Photo: Reuters/Bobby Yip)
Loading...
London: Even though more people now use cards, mobile phones or even facial recognition technology to pay street performers, buy pizza or donate to church on Sundays, hard cash is showing no signs of dying out, central bankers said.

The Bank for International Settlements (BIS) said cryptocurrencies and the debate around them - such as whether cash will be replaced by virtual substitutes - are part of a broader debate about the nature of money.

The payments sector has argued that the use of cash is falling and therefore they don't need to provide as many ATM machines or bank branches.

But in the BIS' latest quarterly review, researchers took a closer look at whether cash is becoming a relic of the past as some claim.

"Some of the breathless commentary gives the impression that cash in the form of traditional notes and coins is going out of fashion fast," said Hyun Song Shin, BIS economic adviser and head of research said.

"Despite all the technological improvements in payments in recent years, the use of good old-fashioned cash is still rising in most, though not all, advanced and emerging market economies."

Cash in circulation has actually risen in recent years, from 7 percent of GDP in 2000 to 9 percent in 2016, although it has fallen in Sweden and a few other places.

"The resilience of cash as a social institution reminds us of the importance of understanding the economic functions of money, beyond just the innovations in technology," Shin said.

Still, debit and credit card payments are rising as well, from 13 percent of GDP in 2000 to 25 percent in 2016. People hold more cards and are using them for more and smaller transactions, Shin said.
| Edited by: Bijaya Das
Read full article
Loading...
Next Story
Next Story

Also Watch

facebookTwittergoogleskypewhatsapp
Most Active
Company Price Change %Gain
Indiabulls Hsg 788.65 -13.08
Reliance 1,151.30 -1.07
Infosys 705.35 1.45
Dewan Housing 235.90 -12.24
Yes Bank 231.90 -6.83
Company Price Change %Gain
Reliance 1,148.90 -1.27
Indiabulls Hsg 788.85 -13.17
La Opala RG 215.25 0.00
Dewan Housing 236.30 -12.34
Infosys 704.50 1.16
Top Gainers
Company Price Change %Gain
HCL Tech 1,024.25 2.08
Infosys 705.35 1.45
ITC 286.45 1.34
Wipro 323.15 1.29
Coal India 279.90 1.27
Company Price Change %Gain
ITC 286.35 1.34
Wipro 324.00 1.20
Infosys 704.50 1.16
Coal India 279.65 1.14
HUL 1,561.05 1.08
Top Losers
Company Price Change %Gain
Indiabulls Hsg 788.65 -13.08
Bajaj Finance 2,150.50 -6.86
Yes Bank 231.90 -6.83
Adani Ports 313.90 -5.83
BPCL 285.15 -5.61
Company Price Change %Gain
Yes Bank 231.75 -6.85
Adani Ports 314.30 -5.62
Maruti Suzuki 6,878.70 -3.79
Tata Motors 179.20 -3.40
Tata Steel 554.65 -3.39

Live TV

Loading...
Loading...