Cash continues to rule our economy. Read on as we explore just how convenient and simple cash is to access and use – and how it creates a system of trust. This is the third post in a series about financial inclusion and the importance of cash.
For consumers, cash is trust
Cash is issued by a central bank so people are able to place trust in the value of currency coming from a single, reliable source. Here in America, the Federal Reserve System’s job is to make sure when you use cash to make purchases, the person or business receiving your cash can trust in its value as they too will be able to exchange it for other goods and services at some future point in time.
And in a crisis situation where financial markets or electronic transactions cease to function properly, cash continues to hold value and operate as a viable way to pay. You only have to think for a moment about the recent spate of hurricanes, wildfires, power outages and more to realize people can rely on cash even in the most dire of situations.
The security of cash
Cash is a simple and secure store of value and payment form. Electronic payments are subject to a plethora risks, including financial and identity theft, and account hacking and takeover, fraudulent transactions and more.
In the United States, the amount of fraudulent credit card transactions is on the rise. In fact, a Lexis-Nexis True Cost of Fraud report shows a 46 percent increase
in monthly fraudulent transactions.
Cybersecurity attacks and payment fraud are today’s reality and a challenge that is not going away any time soon. And many Americans, warry of the constant barrage of data breaches, are turning to cash over plastic to keep personal information more secure.
Cash instills trust and is convenient and simple to access and use. In the next article, we’ll explore deeper into the efficiencies of using cash.
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