Cash use was one of the earliest behavioural shifts of the coronavirus pandemic, with physical transactions moving online when most retailers were forced to shut, and the hygiene-conscious essential services that remained open largely banning cash in favour of contactless payments.
While data from banks suggested Covid-19 was speeding up the demise of cash in favour of credit card and tap and go smartphone payments, Reserve Bank data released last week appeared to highlight one enduring appeal of banknotes to emerge from Australia’s second wave of Covid-19.
Australians are hoarding more cash than ever before, with a record $94bn of banknotes on issue in July, compared with $83bn in February.
Specifically, $50 notes look to be the most coveted, with the number of notes in circulation surging by 143m compared with the beginning of the year – an increase of more than $6bn in value.
Despite the rush to $50 notes, smaller food and retail businesses that have reopened in Australia appear to have moved away from cash more dramatically, with the Royal Australian Mint recently telling the Guardian it had received “virtually no demand” for coins in 2020.
Even businesses most suited to cash, including market stalls, have begun to accept credit card payments.
Will the sound of jingling coins be a story future generations recount to their grandchildren? Will children’s lemonade stalls soon only tap payments? What about the tooth fairy? Will waiters and bartenders miss out on tips? Will buskers need to take credit cards?
We want to hear whether the coronavirus has spelled the end for cash.
Share your thoughts and experiences in the comments below.
