BOE: cash in the time of COVID

demand for cash is rising even as use of cash for transactions has fallen and electronic payments have increased during the pandemic, a phenomenon corroborated by both The ECB and The Fed. The Bank of England summarises the “Banknote Paradox” in a report that will take about five minutes to read.

Comment: demand for cash is up, demand for gold & silver is up and Bitcoin is up. Maybe the “Banknote Paradox” is as simple as people are losing faith in some aspects of financial system. Interesting Twitter thread below.

People are using cash less often to pay for things. During Covid cash payments have declined further, but the demand for banknotes has continued to increase. Why? To learn more about the banknote paradox, read our latest article: https://t.co/7VaeS167Y8 #Covid19 pic.twitter.com/IR7aIEQw7M

— Bank of England (@bankofengland) November 24, 2020