A Cashless Society

Overview

The Cashless Society Working Party (CSWP) was formed in late 2016 with a number of volunteers. Its research delivers a neutral, analytical assessment of developments to comprehend the benefits, risks, and issues of a cashless society at a global level, in the public interest. It provides insights into specialist economic topics and identifies opportunities to learn from international experiences and to adapt public policy. It also provides insights into stakeholder interests that underpin entrenched positions on the transition in progress.

Its first paper “A Cashless Society: Benefits, Risks, and Issues” (referred to as the “Interim paper”) formed the basis for a broader body of work on a number of topics and supported contributions towards several public consultations throughout 2018. “A Cashless Society in 2018” continued Its global chronicle and presented the 2018 trends for the topic, followed by a paper discussing the rise of QR codes for payments, a key 2018 trend.

The CSWP started to take interest in the specialist topics of Central Bank Digital Currencies and crypto assets with a first article in The Actuary magazine in December 2018. This set the scene for a focus in these areas throughout 2019, with a specialist paper on the adoption of digital currencies by the life and pension industries. At the end of the first quarter, the paper “Understanding Central Bank Digital Currencies” seemed ominous of tumultuous events to follow in 2019. A later article about the potential of crypto-assets for capital markets invited readers to think beyond payments.

Financial inclusion was the second area of focus for the CSWP in 2019. Starting with anecdotal evidence from Africa, the CSWP looked to draw lessons from developing regions for the potential benefit of countries such as the UK where de-cashing has been accelerating, with insidious effects on vulnerable residents. The CSWP has engaged with several events, written to stakeholders, and published articles proposing a set of actions to manage the transition towards a less-cash society.

Outputs

2017:

• A Cashless Society – Benefits, Risks, and Issues
• Glossary of terms

2018:

• The above sessional took place at Staple Inn on 22nd January 2018 - view the video or read the abstract of the London discussion in the British Actuarial Journal.
• A Cashless Society – Benefits, Risks, and Issues addendum – 2017 update
• IFoA response to HM Treasury Cash and Digital Payments in the new economy
• Video: An Actuary’s role in a Cashless Society.
• A Cashless Society – Negative Interest Rate policies – 2018 update
• A Cashless Society – Environmental Sustainability of a Cashless Society
• Article in The Actuary: Take the reins, on Central Bank Digital Currencies
• IFoA response to the Treasury Committee inquiry into consumers’ access to financial services

2019:

• A Cashless Society in 2018.
• QR codes
• A Cashless Society in Africa
• Digital-currency adoption by life and pension industries
• Understanding Central Bank Digital Currencies (CBDC)
• IFoA response to the PSR's research into cash access, use, and acceptance
• Podcast: Fair and non-discriminatory access to financial services
• IFoA Blog: Coping in a Cashless society
• Article in The Actuary: A Capital Idea?
• Article in The Actuary: Access to Cash: A challenge beyond legislation
• Article: Digital solutions for access to financial services in a less-cash world

2020

• A Cashless Society in 2019
• Blog:  Prediction: A Cashless Society in 2030?
• Blog: 2020: Are retail Central Bank Digital Currencies (CBDC) in the fast lane?
• Blog: Could CBDC pave the way for helicopter money in the COVID-19 crisis?
• Blog: Are Central Banks disconnected from their financial inclusion responsibilities?
• Blog: Will Central Bank Digital currencies flow into unchartered territories?
• Blog: Are Central Bank Digital Currencies (CBDC) the nemesis of fractional reserve banking?
• Blog: Trust: Government vs Private companies
• IFoA response to the Bank of England Discussion Paper on Central Bank Digital Currency
• Article: Going beyond: Assessing cashless risk. An interview with Sabrina Rochemont
• IFoA response to HM Treasury Payments Landscape Review

2021:

• Article: Going Beyond: Assessing CBDC's (August/September '21)
• Book chapter: The payments revolution: Toward financial exclusion or inclusion by Sabrina Rochemont (as part of the academic book - Discrimination, Vulnerable Consumers and Financial Inclusion)