The Counting on Currency newsletter has an article this week on the staying power of physical currency. The Sainsbury's Bank
infographics they refer to are too large to include here, but check out the complete article online. Nicely done. -Editor
The War on Cash rages on and every day we are bombarded with news that the death of the banknote and the coin is becoming more imminent.
Many times we in the currency industry have fought the good fight and pushed back against the upstart competition. Perhaps it is time to
look at this perpetual competition in a different way.
Many people ask questions like, “how long will hard currency remain as a payment option?” or, “why is currency in circulation increasing?”.
The most common answers are often born from the emotional perspective of one involved in the currency industry. An associate of mine at
Sainsbury’s Bank in the UK was kind enough to recently share with me an infographic depicting the history of coins and banknotes – from a
UK perspective. We thought it might be interesting to compare the history of coins and banknotes to that of the credit card, being one of
the oldest alternative forms of payment. Again, my friend at Sainsbury’s Bank was kind enough to send me another infographic depicting the
history of credit cards.
After reviewing the two infographics it seemed obvious to us that one of the major reasons for the persistence of physical currency
could well be the fact that it is so ingrained in our societal habits as a fundamental part of our sense of community. Just look at the
figures – physical currency has been in existence since roughly 760 A.D. – the credit card, in its initial incarnation (which was not a
card at all) only became a reality in about 1880 A.D.. Simply put, physical currency has more than a 1,000 year advantage over any other
form of payment in terms of building trust, accessibility and iniquitousness as an instrument of payment. That is our opinion, for what it
is worth (couldn’t resist that pun!). Have a look at the following infographics and let us know what you think.
To read the complete article, see:
Old and Stable Versus Young and Restless
(http://countingoncurrency.com/news-item/old-stable-versus-young-restless/)
To view the original Sainsbury graphics, see:
History of the Pound
(www.sainsburysbank.co.uk/money-matters/history-british-pound.shtml)
Wayne Homren, Editor
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