Bank cash plan based on old data
A version of this story appeared in PayDayNews
Australia’s big banks have developed a twenty-year plan for distributing cash throughout Australia, based on out-of-date data.
The bank’s proposed Joint Venture Co. will manage the industry as cash largely disappears, according to the expert report by Warwick Davis of Frontier Economics.
The Frontier report, commissioned by the banks, says:
“ … the dynamics of commercial cash are one of falling demand as a result of falling cash transactions.”
However cash transactions are not ‘falling.’ The latest data shows no decline in the use of cash over the last five years.
The Frontier report was published prior to the latest RBA Consumer Payments Survey showing a significant bounce back in the use of cash.
19 per cent of in-person transactions are now completed with cash, up from 16 per cent in 2023. Only the previous 2023 RBA CPS is quoted by Davis.
Australia’s regulators are planning for failure says Frane Maroevic’ the International Currency Association’s Director General.
“Central banks in other countries are managing cash access and availability to ensure the cash system thrives and is viable for the long term,” said Frane, “Central banks are protecting, supporting and promoting cash access and acceptance.”
Frane Maroevic’ is issuing a warning to Australia about planning for failure.
“In Australia, regulators are not asking how to keep cash alive — they’re asking how to manage its death.