Industry and Consumer Groups Convene to Support Cash

In addition to the industry associations that are advocating for cash, two new initiatives in Europe have demonstrated the scope for campaigns to promote cash acceptance at the country level by harnessing interest groups throughout society.

First is Plataforma Denaria, a cash advocacy group in Spain which was established last year. According to its president, Javier Rupérez, it aims ‘to safeguard the interests of those who see cash as a tool for financial inclusion, to promote consumers’ freedom of choice in payments, and raise awareness of the importance of cash as a critical infrastructure in the economy, especially in crises situations.’ 

Funded in part by the Spanish cash management industry, its members include CERMI (the Spanish Committee of Representatives of People with Disabilities), ANGED (the National Association of Large Distribution Firms), CEOMA (the Spanish Confederation of Older People’s Organisations), Down Espana (the organisation for Downs Syndrome) and AFFAMER (the Confederation of Federations and Associations of Families and Women of the Rural Environment).

It was launched in September 2021, accompanied by the results of a survey it had commissioned from a sample of 1,001 Spanish citizens representative of the population as a whole. These showed that 90% of Spaniards defend the permanence of cash as a payment method, more than 70% consider that cash is necessary in society, and 77% describe it as a ‘public good’. Furthermore, 87% support guaranteeing consumers payments in cash and 80% are against cash limits.

In this context, says the group, Platform Denaria was established as a meeting point for the defence of the interests of citizens, institutions and commerce, and that seeks to promote social and public debate about money and its future. Likewise, the platform wants to warn about the consequences of the limitation of cash among the most vulnerable social groups, among the economic sectors affected by the free movement of cash and the increase in financial costs, as well as the risks of the fragility of digital payments, cyber attacks and privacy, among other issues.

An early success for cash champions in Spain has been the General Law for the Protection of Consumers and Users, which entered force in May and makes it mandatory for retailers to accept cash.

Denaria Platform has published a series of proposals that build on this new law, including the preparation of a map of risks of financial exclusion to support a viable and sustainable infrastructure, defining the cash network as a critical national infrastructure, the establishment of a maximum distance between ATMs, the installation of ATMs in retail and public facilities, supporting the elderly with the use of digital technology for payments, and the removal of a limit on cash transactions exceeding €1,000, which remains in force and which the ECB itself has described as ‘disproportionate’.

Euro Cash 360°

More recently, last month saw the launch of the Euro Cash 360° Platform by the Austrian central bank Oesterreichische Nationalbank (OeNB) and the Austrian Mint, together with consumer organisations, employee representatives, the Senior Citizens Council and the Association of Municipalities.

Headed by Matthias Schroth, Director of the OeNB’s Cash Management, Equity Interests and Internal Services Department, the platform is intended to bring together representatives of the general public and business to explore ways for creating attractive framework conditions that support and ensure the future use of euro cash in Austria.

In particular, it aims to ensure a comprehensive flow of information between stakeholders; to strengthen and secure the position of euro cash in Austria against the backdrop of cash being the only non-profit-oriented means of payment in an increasingly digital payment space; and to involve the people living in Austria.

‘As a member of the Eurosystem, the OeNB is tasked with maintaining trust in the common currency and trust in cash. Our declared focus is on ensuring stability and security. We created this platform as a way to raise awareness in society, in particular in the current environment of multiple crises,’ said OeNB Governor Robert Holzmann at the launch.

Most central banks state that they are neutral or agnostic in terms of choice of payment instruments, with their role vis-à-vis cash limited to issuance and ensuring its smooth supply and distribution. This too often, however, translates into passive acceptance of the commercially-driven reduction of cash facilities, so it is encouraging to see a central bank-driven initiative that, whilst not promoting cash, does at least aim to ensure it is available.