Virtually Irreplaceable – The Importance of Cash
Around 85% of every global financial transaction is made through cash, and it will remain an inclusive and essential part of the payment landscape in the future. The very existence of banknotes or ‘hard cash’ enables individuals, businesses and nations to participate in the global economy. Since it is such an indispensable part of every stable financial and economic system, cash needs to be undeniably authentic, cost-effectively distributed and readily available.
Claims exist that online payment gateways, credit cards or bitcoin prevail today – but in reality, currency in circulation is growing on a global scale by approximately 3% annually. Cash will always play a dominant part in the global payment ecosystem.
More than a third of the world’s population does not have access to any method of payment other than cash. Hence, it plays a critical role in financial inclusion, enabling economic stability and societal development. With ~700 billion banknotes in circulation globally, 100% of adults have used cash for transaction at some point in their lives.
Source: Time Efficiency of Point-of-Sale Payment Methods: Empirical Results for Cash, Cards and Mobile Payments
Money ensures economic stability, and experts consider cash as not just a ‘good’ but a distributed public infrastructure. Central banks and governments understand that it is a system of relationships, qualities and technologies that make their currencies unique. With over 170 billion new banknotes put into circulation annually and instances of counterfeit currency on the rise, the need for innovative currency security solutions is an increasing priority for central banks.
Banknotes are the physical representation of a country, and their design & aesthetics are symbols of national pride. Human senses play an important role in currency authentication, and central banks are looking for banknote features that provide multi-level security, as well as a memorable experience as they capture and hold the user’s attention. Nanotech’s KolourOptik® display technology provides the solution to all of these needs. Developed exclusively for the government and banknote industry, It produces a unique combination of exceptional visual effects that result in uncompromising security and considerable design flexibility.
Across all payment platforms, currency is the most resistant to fraud. The 2017 research study ‘Keeping Cash’ by the Institute for Money, Technology and Financial Inclusion showed that criminals have moved to electronic fraud and digital scams for money laundering. Electronic laundering techniques are emerging as much easier and more prevalent than those based on the exchange of physical currency. Having said that, it is important for Governments to continue implementing next-gen technology to protect their currencies. Nanotech’s innovative KolourDepth® security foils and stripes for banknotes are nearly impossible to reproduce or reverse engineer due to proprietary software algorithms and patented nanostructures, microstructures, and nano-fabrication techniques, not accessible to counterfeiters.
Cash is part of the infrastructure required for a secure economy. To ensure counterfeit resistance, ultimate security and maintain public confidence in cash, Nanotech has developed next-gen currency authentication solutions using micro and nano-optic engineering. We strive to protect governments by delivering unmatched currency security, stunning visual effects and innovative engagement solutions.
Average duration of a purchase transaction by payment methods
What’s happening to banknote issuance patterns around the world?
Keeping Cash: Assessing the Arguments about Cash and Crime