Consumer groups are urgently calling on the federal government to follow the example of other jurisdictions in the United States and Europe and enact legislation to halt the move towards a cashless society.
Currently, only 10 per cent of transactions in Canada are conducted in cash, said Carlos Castiblanco, an economist at the Options Consomatures group.
“We need to protect our cash now, before more stores start refusing to take it.” [it]Castiblanco recently appeared on CBC Radio Ontario Today.
It’s important to act now, before retailers start removing all the infrastructure needed to store and manage banknotes, he added.
“They’re already used to handling cash,” he said, “so now is the time to act before things get even more complicated.”
The report states: Will cash become a thing of the past?Option Consommateurs has published the first detailed report looking into who is still using coins and paper money.
‘Strong demand’ for cash
Recent Approximately 1,500 people voted online people A survey commissioned by another group, Payments Canada, found that the majority of respondents were concerned about the future of cashless stores and wanted to maintain the option to pay with cash, which doesn’t incur bank fees, isn’t at risk of violating their privacy, and can be used even when the internet is unavailable.
“Demand for cash remains very strong,” Bank of Canada Deputy Governor Sharon Kozicki said in a recent interview with CBC.
The bank closely tracks how its funds are being spent, and cash use actually increased at the start of the COVID-19 pandemic, she said.
Though growth has slowed, Kozicki said, “it’s still trending up overall, which shows people still want it.”
parable A report commissioned by the Bank of Canada It suggests that it is time to protect your access to money.
The report, titled “The Impact of Social Policies on a Cash-Down Society”, argues that cash transactions have plummeted from 54% in 2009 to 10% as of 2021 and recommends legislative action.
One of the authors, Aftab Ahmed, described who would be most affected in a cashless world: Recent Articles on Policy OptionsThe online magazine of the Public Policy Institute.
“For many people, including Indigenous peoples, the homeless, Canada’s seniors, victims of domestic violence and other vulnerable populations, cash is a sign of economic security, a source of financial independence, a lifeline in emergencies and a symbol of cultural tradition,” Ahmed wrote.
“Canada needs to avoid sleepwalking into a cashless future and recognize the risks of exacerbating financial exclusion for its most vulnerable people.”
Other cities and countries are taking steps
Castiblanco said the issue has been a hot topic outside of Canada, with some jurisdictions starting to enact legislation to protect access to cash.
In 2019, Philadelphia became the first city in North America to ban “any person offering or selling consumer goods or services at a retail establishment from refusing to accept cash as a form of payment.”
Other US cities, including New York, Seattle and Los Angeles, have since made progress on the issue.
In New York, the regulation proposes fines of up to $1,500, and the city council members who proposed it have declared that banning cashless businesses would protect privacy, fairness, and consumer choice.
Other European countries including Norway, Spain and Ireland have introduced similar legislation, which in Ireland would require pharmacies, grocery stores and other establishments selling essential goods and services to offer a cash payment option.
Ontario Today51:39Why do you still need cash?
This phone interview features Ron Delnebo, president of a British group trying to stem the trend towards a cashless society, and Carlos Castiblanco, an economist with consumer group Options Consommateur, which used a federal grant to produce a recent report called “Is Cash Soon to Be a Thing of the Past?” Among the report’s recommendations is an urgent call for lawmakers to protect access to cash before many Canadians unwittingly slip into a society where they are left behind.
“Urgent action is needed now.”
British consumer group the Payment Choice Alliance and others are calling for the UK to follow the Irish model.
“Urgent action is needed now,” said Ron Delnebo, a spokesman for the coalition. Ontario Today.
The group wants new rules in the UK by the end of 2025.
![A man standing against a wall and laughing.](https://i.cbc.ca/1.7250840.1719798480!/fileImage/httpImage/image.jpg_gen/derivatives/original_780/ron-delnevo-headshot.jpg)
![A man standing against a wall and laughing.](https://i.cbc.ca/1.7250840.1719798480!/fileImage/httpImage/image.jpg_gen/derivatives/original_780/ron-delnevo-headshot.jpg)
“If it gets any bigger than that, [will be] “There are so many businesses that don’t accept cash,” Delnebo said. “It’s becoming so hard to get cash. [cash-based system] I will collapse.”
Delnebo said Canadians could take a lesson about the power of consumer behaviour in their own country.
“Members of Congress are inundated with letters from the public and they are responding to them,” he said, “so don’t let politicians close their ears and not listen. Tell them what you want.”