The growing relevance of cash in an increasingly changing payments world: An interview with Guillaume Lepecq

Abstract

As the appetite for cash remains unabated, few societies are close to ‘cashless’ or even ‘less-cash’. In fact, demand for cash has risen in most advanced economies since the start of the global financial crisis. People tend to take cash for granted, but the smooth, efficient and secure distribution of cash is actually supported by a complex ecosystem known as the cash cycle. Cash is not always the most efficient payment instrument but, in most cases, it is. Among other things, this interview deals with three major trends aimed at increasing the efficiency of cash. First, central banks have been adapting their cash distribution policies with a view to increasing the velocity of banknote circulation and the efficiency of the cash cycle. Automation has been the second area of innovation. Lastly, numerous other innovations contribute to the efficiency of cash. Cash possesses unique attributes, which are mostly unmatched by alternative payment instruments. At a time when confidence in banks remains low, providing access to a product that consumers want and need could contribute to restoring banks’ the image of banks with the public.