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Europe > Norway

You are looking at 1 - 3 of 3 items for :

  • Type: Journal Issue x
  • Demand for Money x
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Cover IMF Working Papers
Measurement and Use of Cash by Half the World’s Population
Mr. Tanai Khiaonarong
and
David Humphrey
The use of cash for payments is not well measured. We view the value of cash withdrawn from ATMs, or as a share of all payments, as a more accurate and timely measure of cash use compared to the standard measure of currency in circulation, or as a ratio to GDP. These two measures are compared for 14 advanced and emerging market economies. When aggregated, the trend in cash use for payments is currently falling for half the world’s population. Such a measure can help inform policy decisions regarding CBDC and regulatory decisions concerning access to and use of cash.
Keywords:
Cash; payments; access to cash; central bank digital currency; cash use; ATM cash; aggregate Currency value; value of cash; use of cash; Currencies; Monetary base; Purchasing power parity; Stocks; Payment systems
Cover IMF Working Papers
Instant Payments: Regulatory Innovation and Payment Substitution Across Countries
Mr. Tanai Khiaonarong
and
David Humphrey
Instant, or fast, payments are credit transfers completed and settled within seconds or minutes. They have low costs, reduce payment risk, and have significantly replaced the use of cash, cards, or check and direct debit payments. We note the role played by regulators in promoting instant payments and identify instances of significant payment instrument substitution across 12 advanced and emerging market economies. This substitution reflects the realized demand for attributes offered by instant payments. As these attributes are quite similar to those for CBDC, the demand for retail CBDC (if issued) may be less compelling.
Keywords:
Instant payments; payment substitution; regulatory innovation; instant payment; payment risk; direct debit payment; payment share; Payment systems; Europe
Cover IMF Working Papers
Cash Use Across Countries and the Demand for Central Bank Digital Currency
Mr. Tanai Khiaonarong
and
David Humphrey
The level and trend in cash use in a country will influence the demand for central bank digital currency (CBDC). While access to digital currency will be more convenient than traveling to an ATM, it only makes CBDC like a bank debit card—not better. Demand for digital currency will thus be weak in countries where cash use is already very low, due to a preference for cash substitutes (cards, electronic money, mobile phone payments). Where cash use is very high, demand should be stronger, due to a lack of cash substitutes. As the demand for CBDC is tied to the current level of cash use, we estimate the level and trend in cash use for 11 countries using four different measures. A tentative forecast of cash use is also made. After showing that declining cash use is largely associated with demographic change, we tie the level of cash use to the likely demand for CBDC in different countries. In this process, we suggest that one measure of cash use is more useful than the others. If cash is important for monetary policy, payment instrument competition, or as an alternative payment instrument in the event of operational problems with privately supplied payment methods, the introduction of CBDC may best be introduced before cash substitutes become so ubiquitous that the viability of CBDC could be in doubt.
Keywords:
WP; cash use; payment instrument; cash share forecast; cash substitute; cash payment; cash forecasting; central bank digital currency; use data; Currencies; Payment systems; Central Bank digital currencies; Bank deposits; Digital currencies; Europe