Tech no threat to cash for now

The rise of new technology is not a threat to cash but the financial services sector should not be complacent, according to the Bank of England’s chief cashier and director of notes.

Victoria Cleland said technology had made a “huge impact on the payments industry”, with ways to pay including digital currencies, mobile payments and innovations such as contactless cards gaining “real traction”.

“We have even considered whether there might be a Bank of England-issued digital currency, but do not envisage this in the

“The cash industry should not be complacent”

foreseeable future,” she added.

Ms Cleland said that, contrary to predictions of the eventual death of cash, “if we dig further, it is clear that cash is very much alive and kicking”.

One in 20 (5%) adults in the UK, spread relatively evenly across age groups, relies almost entirely on cash for day-today payments, she said.

She added: “Technology is not a threat to cash – it provides opportunities. The bank has used the latest technology to introduce state-of-the-art polymer notes.”

Ms Cleland said much of the resilience of cash was due to customer demand but she warned: “The cash industry should not be complacent. There are many alternatives and with time more people will move to them.”