An important discussion about the future of cash across Australia with Robbie Barwick from The Australian Citizens Party.
The CEO of CBA Matt Comyn floated the idea of limiting cash transactions to $500, so we pull this apart in the context of the Use Cash campaign which ran successfully on the 2nd April.
See my earlier show for detail of that campaign, and the Senate interrogation of the RBA which we also discuss. The Fight For Cash Just Got Terminally Serious! https://youtu.be/LiNSH7I_8xs
Despite cash being legal tender in Australia, surprisingly it is legal for businesses to refuse to accept it provided that they inform consumers of their stance before any “contract” for the supply of goods or services is entered into.
The war on cash has taken an interesting turn, with the RBA being questioned by the Senate Inquiry into Regional Bank Branch closures, and claiming the use of cash had fallen, but frankly on thin and filtered evidence; while Armaguard, Australia’s only cash-in-transit business is facing the prospect of collapsing due to the claimed declining use of cash. The RBA, which regulates the payments industry and is responsible for printing money is also involved in the crisis talks.
And a social media campaign, led by the Cash is King Facebook group is calling on Aussies to withdraw and use cash next Tuesday, April 2, in protest against the shift to digital payments. The protest is aimed at showing Australia’s banks and retailers that there is still a demand for the use of cash in society. That is, if you can still find an ATM.
So, action on Tuesday to grab some cash could be an important step on the road to saving cash for All Australians who want to use it, despite pressure from the Government who is responding to huge pressure from the commercial banks. This in turn puts massive pressure on the current Senate review, who is scheduled to hold one more community hearing on Bribie Island on the 16th April. Will the committee who has laid bare the issues of branch closures and removal of cash come good or hook their final report like the earlier Royal Commission Inquiry into Financial Services, which exposed major issues through their hearings, only to turn to water in their final report and recommendations, which allowed the banks to behave business as usual. This time all eyes will be on the Senate.
http://www.martinnorth.com/
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In the most recent incident of card fraud: the gross amount withdrawn or used for all incidents was $2.2 billion while the net loss after any reimbursements paid for all incidents was $476 million. The median amount withdrawn or used per incident was $200, A further 514,300 (2.5 per cent) experienced some kind of scam, and just under 200,000 (1.0 per cent) were victims of identity theft.
The proliferation of the digital world has opened the door for more scans, so we need to be careful with the information we share, the links we click, and monitor statements to look for fraudulent transactions. This is another area where financial education needs to be enhanced, in school and beyond, as many people are too easily caught. Its important to be digitally smart. Maybe cash is safer and easier to manage. Worth thinking about in the context of the current drive to removed cash all together.
http://www.martinnorth.com/
Go to the Walk The World Universe at https://walktheworld.com.au/
I discuss the latest developments on the war on cash with Robbie Barwick from the Citizens Party. In the final sitting week, it’s time to give the politicians a final serve in the interests of the people!
Call Minister Stephen Jones and Labor Senators today to protest capitulation to the banks!
Message:
I’m calling to object to Labor’s capitulation to the banks! Labor must stand up to the banks by doing two things this week:
Pass the banking reform laws as planned, including civil penalties for executives to hold bankers accountable;
Support the push for a Senate Rural and Regional Affairs and Transport Committee inquiry into the regional banking crisis, including the government post office bank alternative.
Minister for Financial Services Stephen Jones: (02) 6277 7230 Stephen.Jones.MP@aph.gov.au
Click here to find the contact details of the Labor Senators from your state. https://cec.enudgemail.com.au/securl.php?nudge=y1052zpr1128&link=12460&email=robbie@citizensparty.org.au
Coalition banking inquiry blamed for mass branch closures https://independentaustralia.net/politics/politics-display/coalition-banking-inquiry-blamed-for-mass-branch-closures,17015
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An estimated 7 million “buy now pay later” users will soon see new laws introduced by the federal government that aims to better protect them against financial abuse.
A new Treasury paper released by Financial Service Minister Stephen Jones today suggests buy now pay later players could soon be subject to the same laws as credit card providers, as “unaffordable or inappropriate lending practices are contributing to financial stress and hardship, and other types of consumer harm”.
The paper said there were 7 million active buy now pay later accounts in the 2021-22 financial year resulting in $16 billion in transactions, an increase of almost 37 per cent on the previous financial year.
The Treasury paper makes it clear self-regulation, without some controls, is no longer an option.
It raises a range of issues, noting there’s been reports of “poor complaints handling processes” and that “the lack of hardship assistance for consumers leads to delayed or unsatisfactory remediation”.
Go to the Walk The World Universe at https://walktheworld.com.au/
There was a critical RBA Payment System failure overnight. Think what happens when you put all your trust into a digital system. Perhaps a lesson to learn ahead of any discussion about CBDC?
Go to the Walk The World Universe at https://walktheworld.com.au/
This week Australia’s living God made international headlines by declaring a research project into crypto currencies.
The Digital Finance Cooperative Research Centre (DFCRC) on a research project to explore use cases for a central bank digital currency (CBDC) in Australia.
The RBA announce coincides with the announcement by the Senate Select Committee on Australia as a Technology and Financial Centre.
Australians need to ensure that the RBA and the Federal Parliament does not impose totalitarian control through the Central Bank Digital Currency. Australia is headed down a path with little democratic consent and there is a lot of uncertainty were public policy is going in Australia.
There is a possibility that CBDCs will improve economic life in Australia, but there is also a possibility that it may not. The RBA cannot be allowed to alter economic life in Australia without a democratic mandate.
The Prime Minister and Treasurer need to explain why CBDCs are being developed in Australia and what is the public policy case.
The Australian people must ensure that physical cash is never eliminated and that freedom and privacy remains the corner stone of Australia’s payment system and economic life.
Go to the Walk The World Universe at https://walktheworld.com.au/
If you string together recent statements from entities like the Bank For International Settlements, IMF, Federal Reserve and other non-elected entities a frightening story emerges as Central Bank Digital Currencies (CBDC) are deployed to give Central Banks even greater powers, impose cross-border solutions (some would say a global currency) and remove more freedoms from society.
This is being talked about top-down as it were, without proper local consultation and buy-in. The future they portray is frightening.
To make the point I have pulled together material from a number of relatively difficult texts, but see the summary section in the contents section to cut to the chase.
[CONTENT]
0:00 Start 0:15 Introduction 1:25 BIS Report – Digital Money 6:25 BIS New Public Policy 8:30 IMF Future Of Money 15:00 Federal Reserve on CBDC 19:23 Literary Review on CBDC and Monetary Policy 24:50 Summary and Conclusion
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I discuss the announced housing policies from the two major parties with Steve Mickenbecker from Canstar. Are they worth the paper they are written on?
Steve Mickenbecker is in Canstar’s Group Executive Team, bringing more than 30 years of experience in the Australian financial services industry. As a financial commentator for Canstar, Steve enjoys sharing his expertise across topics such as home loans, superannuation, insurance, mortgages, banking, credit cards, investment, budgeting, money management and more.
