The usage of cash in Australia (and other countries) – Current trends and future..

As talks of Australia following India grow, here is a nice note by its central bank economists on cash usage in Australia.

The authors say cash usage has declined in Aus but still remains important:

Australian consumers have increasingly been using electronic payment methods in preference to cash for their transactions. The overall demand for cash in Australia, however, remains strong. There is ongoing demand for cash for non-transaction purposes, particularly as a store of wealth. While the role of cash in society is evolving, it is likely to remain an important feature of the payments system and economy for the foreseeable future. Moreover, the current mix of banknote denominations continues to meet community demand for a secure means of payment and store of wealth. Given the ongoing importance of cash, the Reserve Bank will maintain the public’s confidence in Australia’s banknotes by continuing to ensure that banknotes are of high quality and secure from counterfeiting.

Is it a reminder to the Government as well?

They also shows how cash usage is the highest amidst old age compared to younger lot which is on expected lines.

The authors  look at cash usage trends in other countries and sees there is a gradual decline towards less cash economy. Germany and Austria continue to transact nearly 80% of transactions in cash. Sweden is the lowest at 15%!

Nice realistic assessment on cash usage in Australia.

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