December 11, 2023


The contradictory development of the two motivations for using cash – a decline in payment usage coupled with an increase in holdings – has been evident for years, but the ongoing Covid-19 pandemic has accelerated this trend. Several recent payments studies confirm that the increase in online shopping and the increasing use of contactless and mobile payment media has led to a significant reduction in the use of cash in transactions.1 Meanwhile, precautionary demand for cash has