Results (
Indonesian) 1:
[Copy]Copied!
The substitution of noncash (check, giro, and credit and debit card) payments forcash transactions is difficult to gauge because there are no data series on the actualvalue or volume of cash transactions in any country. However, determining thedegree of cash substitution is important because it will negatively affect thecentral banks’ and governments’ seigniorage revenue. We utilise a novel methodfor approximating the volume of cash transactions using public information oncurrency stocks and noncash payments. Applying this method, we estimate howcash has been substituted by other payment instruments in 10 European countries.We also provide a forecast of future cash use by country. We find that the trend incash substitution across countries is quite similar. However, the countriesthemselves are at significantly different stages of this substitution process. Thespread of debit and credit card payments has been the key factor behind thesubstitution away from cash as use of e-cash innovation is still in its infancy.Country-specific differences in the substitution process are largely explained bydifferences in the level of implementation of each country’s card paymenttechnology.
Being translated, please wait..