Leith van Onselen writes for MacroBusiness as the Unconventional Economist. Leith has previously worked as an economist at the Australian Treasury, Victorian Treasury and Goldman Sachs. He has a strong background in economic policy and financial sector regulation. Leith holds a Bachelor of Commerce (Honours) degree from Melbourne University and a Graduate Diploma of Applied Finance and Investment from the Securities Institute of Australia (now FINSIA).. Leith can also be found on twitter: twitter.com/leithvo.
Cash remains a critical service for society, and we examine the results of recent UK research which suggests there should be a universal service obligation. We also discuss recent trials of a banking hub centred on the Post Office.
Both lessons which are appropriate to Australia.
Go to the Walk The World Universe at https://walktheworld.com.au/
Robbie Barwick from the Citizens Party and I discuss the removal of the Cash Transaction Ban Bill from the order paper and the victory for the people this represents!
Kudos to the many thousands of people who made their views known!
I discuss an important book written by Nikesh Lalchandani, which covers the history of banking and payments in Australia, and the digital evolution currently underway.
The Reserve Bank and the banking system have plenty of cash on
hand to meet demand under any circumstances,” says Assistant Governor Christian
Hawkesby. Mr Hawkesby made the statement today after public interest and
discussion about cash availability and use.
“We work closely with New
Zealand’s banks, the companies that transport cash, and those that supply
cash-handling equipment. They are all prepared for operating during all
circumstances, including any unusual challenges that COVID-19 may pose.” he
says.
“As an example, the Reserve
Bank has at least two years’ worth of replacement cash available to feed into
the system if required. We can keep cash flowing to and from branches and ATMs
in the event of staff shortages or other difficulties anywhere in the cash
system.”
“The banks and electronic
payments systems are prepared, resilient, and will keep operating. When people
are shopping, there will be cash and other payments systems available to
support that,” he says.
The Reserve Bank is also
reminding shoppers and retailers to practice good hand hygiene.
“Cash is just one of a
number of frequently touched surfaces we encounter. The same is true for any
other payment device whether it’s a card, phone or watch. This reinforces the
need for good hand hygiene regardless of the way you pay or accept payment.”
“Retailers should use
common-sense when it comes to cash. Businesses are not obliged to accept cash,
but declining it may end up disadvantaging people who rely on its use. These
people are more likely to be young, elderly, poor, disabled or financially
excluded. Have respect and care for each other,” says Mr Hawkesby.
Interesting statement from the Bank of Canada, their central bank.
During this time of heightened public health measures intended to limit the transmission of COVID-19, some consumers and businesses are choosing not to use cash to limit potential exposure. Refusing cash could put an undue burden on people who depend on cash as a means of payment. The Bank strongly advocates that retailers continue to accept cash to ensure Canadians can have access to the goods and services they need.
This is important, and like the Reserve Bank of New Zealand who also recently underscored the importance of cash in the economy, it reinforces the importance of keep real money available.
