Have you noticed the recent flurry of stories in the media about the decline of cash?
Financial troubles at the country’s main cash transit business, Armaguard, have highlighted the strain on the infrastructure that ensures ATMs, bank branches, supermarkets and other big retailers are stocked with enough banknotes and coins.
Armaguard’s woes show that as cash payments decline, it is putting pressure on the infrastructure for distributing cash.Credit: Louie Douvis
Some of the more excitable stories have even suggested Australia faced a “cash crisis” or “cash emergency”, after Coles briefly paused Armaguard deliveries and cut withdrawal limits in its supermarkets last week. (Coles reversed these changes after Armaguard received emergency funding from its owner, Linfox.)
In response, banks and the federal government have repeatedly sought to reassure us that there’s plenty of cash out there, so no need to worry. Australian Banking Association (ABA) chief executive Anna Bligh this week went on breakfast television emphasising that we are not about to go cashless, even if we are using much less of the stuff.
So, which one is it? Is cash in serious decline? Or does all the effort to keep Armaguard alive – as well as the contingency planning for its possible demise – show that we still need to have a reliable supply of cash in the community?
I’d say both of those things are true. We’re certainly using much less cash, but we’re also a long way from becoming cash-free.
Balancing these opposing trends will be tricky for banks, big retailers and the government, and eventually, we’ll probably need to make some significant changes to the system we have for distributing cash around the country.
Predictions of a cashless society are nothing new – people have been making them for decades, as electronic payments steadily increased their share.
The Armaguard saga shows we’re a long way from ditching cash entirely
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05.04.2024
Have you noticed the recent flurry of stories in the media about the decline of cash?
Financial troubles at the country’s main cash transit business, Armaguard, have highlighted the strain on the infrastructure that ensures ATMs, bank branches, supermarkets and other big retailers are stocked with enough banknotes and coins.
Armaguard’s woes show that as cash payments decline, it is putting pressure on the infrastructure for distributing cash.Credit:........
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