Reserve Bank says cash system may be unable to meet its objectives

The Reserve Bank says the means of physically distributing money – the ‘cash system’ – is facing significant issues as the use of cash continues to decline, Interest reports. In the absence of a “policy response”, the ability of physical cash to perform its role as a “trusted value anchor” for private money and the wider financial system will be under threat. The RBNZ has released a discussion document ‘Future of Money – Cash System Redesign‘ that looks at the issues around cash and suggests solutions.