While cash isn't disappearing entirely, data from Marqeta shows that both consumer attitudes and habits are shifting towards a less cash-dependent economy. According to Marqeta's 2024 State of Payments Report, nearly three-quarters of U.S. consumers aren't concerned about moving towards a cashless society.
Paper money
The United States no longer issues bills in larger denominations, such as $500, $1,000, $5,000, and $10,000 bills. But they are still legal tender and may still be in circulation. The U.S. Bureau of Engraving and Printing creates U.S. paper currency.
I think we are really not yet close to going completely cashless,” he says. This comes as the Federal Government announced that it will make it compulsory for businesses to accept payments in cash, particularly for “essential items” such as groceries and fuel.
As of yet, there is no definitive answer as to whether digital currency will replace money some day. The outcome bears on many factors including technological advancements, regulatory decisions, public acceptance, levels of digital literacy, and more.
Inflation Is Eating Away at Your Funds
According to the Bureau of Labor Statistics, the average rate of inflation from April 2023 to April 2024 was 3.4%. If you've been keeping your money in a savings account with a lower yield than the rate of inflation, you should switch over to a higher-yield account.
Since law enforcement can track digital transactions and/or freeze bank accounts, many criminals—including drug cartels and terrorist organizations—operate in cash.
The concept of a cashless society has been around for decades. But with 84% of payments in the US being made digitally in 2025 according to Clearly Payments, research suggests that the transition from physical currency could take place sooner than we once thought.
Concealing income and tax evasion also becomes even more difficult without the "cash in hand" option of receiving payment. While the potential for data breaches will be present, the range of tech-based authorization methods can also make digital banking more secure than cash.
The big four banks have reassured customers they will maintain in-branch cash services, following Macquarie Bank's unprecedented move to phase out cash and cheque services entirely. Commonwealth Bank, ANZ, NAB and Westpac all confirmed on Friday that there are no current plans to go cashless.
Some countries aim to de-dollarize or reduce their dependency on the U.S. dollar, but it is still essential for global business and is a widely held reserve currency. There is no reason to expect the U.S. dollar to collapse in the near future.
The $100,000 bill is the highest denomination ever issued by the U.S. Federal Government. Printed in 1934, it was not intended for general use, but instead was used as an accounting device between branches of the Federal Reserve. It is illegal for a private individual to own this banknote.
While the future demand for cash is uncertain, it is unlikely that cash will die out any time soon.
As people move toward more electronic or digital forms of payment, it might seem like paper money is on its way toward obsolescence. But experts say that cash will always be around.
Is the US Going to Digital Dollar? As of June 2024, the US Federal Reserve has not decided to transition to a CBDC or supplement its existing monetary system with one. It is researching the effects a CBDC would have on the dollar, the US, and the global economy.
Sweden: Sweden leads the world in cashlessness, transitioning away from banknotes. With just 32 ATMs per 100,000 people and over 98% of Swedes owning a debit or credit card, cash usage is dwindling.
Many community financial institutions (CFIs) are in the same boat, trying to embrace tech and digital payments, while still acknowledging that not all Americans are ready to bid goodbye to cash just yet. Cards or cash? As mobile payment apps continue to gain popularity, the trend is certainly away from cash.
China's cashless evolution is a remarkable story, as the country transitioned in less than two decades from a cash-first society to one with an 86% mobile payments penetration rate.
Perhaps the easiest way to think about the role of money is to consider what would change if we did not have it. If there were no money, we would be reduced to a barter economy. Every item someone wanted to purchase would have to be exchanged for something that person could provide.
In 2023, Sweden will become the first cashless society in the world, with its economy going 100% digital. According to the Swedish Central Bank, already now, nearly 80% of the country's residents use cards for conducting purchases. Overall, 58 % of transactions use payment cards, and only 6% are made in cash.
While all these notions are true, it is safe to say that bank cards will not be going anywhere in the near future. This is mainly due to the fact that no other modern payment method currently beats their adoption level, connectivity, and acceptance. After all, 76% of consumers have at least one credit card.
In recent years, left-leaning leaders in cities such as New York, Philadelphia and San Francisco, as well as in the state of New Jersey, have enacted similar laws to protect unbanked customers who rely on cash. Massachusetts has required businesses to accept cash since 1978.
Westpac, ANZ, CommBank and NAB have ruled out going cashless, but the banks have shuttered branches across regional Australia, leaving some customers without the option to bank with cash.
The answer is yes if you fail to pay your taxes. In addition, the government permita an employer or financial institution to do so in certain situations. If you plan for debt and other required payments properly, chances are that money won't ever have to be removed from your account without your permission.
In the model of Gale and Yorulmazer, banks hoard liquidity to protect themselves against future liquidity shocks (precautionary motive) or to take advantage of potential sales (strategic motive).