The Role of Cash in War

News from Ukraine is grim following Russia’s invasion. It highlights, yet again, the role of cash at times of huge stress.

In Russia and in Ukraine people have turned to cash, with large queues at bank branches and ATMs. The National Bank of Ukraine enacted a temporary cash withdrawal limit of 100,000 Ukrainian hryvnia per day — the equivalent of about $3,339 – and both countries have imposed capital controls.

Yet again, the dreadful situation in the Ukraine raises the question about the usefulness of bank accounts, banking apps, bank cards or cryptocurrencies when power is uncertain, the internet and phone lines are not guaranteed and restrictions limit or even stop cash movements? When the impossible happens, whether natural or manmade, the value and role of cash is clear.