Cash may no longer be king in a world of digital transactions, but it retains an important role. This is, above all else, because most of us – more than 90 per cent according to Central Bank research – use notes and coins at some stage. And some – including those uncomfortable with using digital payment methods – still prefer to use it most of the time.
More recently, another issue has become more prominent. Events such as the massive electricity blackout in large parts of Spain and Portugal earlier this year have underlined the fragility of electronic payment systems. International geo-political tensions have added another layer of risk, with the possibility of “bad actors” seeking to sabotage energy supplies or payment systems.
For these reasons, many governments now recommend that people hold some cash at home and officials in Ireland are also considering this issue. This raises obvious security concerns, particularly for those in remote areas. But the risk of losing electronic payments for a period of time means some cash holdings may indeed be wise.
Access to cash, however, is increasingly an issue, particularly for those in rural Ireland. Because of this, Minister for Finance, Simon Harris, is to sign an order to bring into force a new Act, passed last May, obliging financial institutions to maintain an adequate supply of ATM machines around the State and to provide adequate cash services. Following the passing of the legislation, the Central Bank undertook a study of the issue and the rules will now oblige financial institutions to provide ATMs within 10 kilometres of many homes.
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While the detailed rules – and the Central Bank’s implementation of them – will take time to settle down, this is a reasonable step to ensure access to cash, at a time when the number of bank branches is shrinking. It is also timely, as the sale of PTSB may lead to further closures. Retailers also need to respond. They have invested in digital payments, but they also need to continue to accept notes and coins, not just in special circumstances but as an ongoing part of business life.
