Despite technological advancements, cash remains essential in the financial ecosystem due to its resilience against digital vulnerabilities and cybersecurity threats. Ireland’s 2024 Finance Bill underscores cash’s importance, with 50% of transactions using it and legislative moves reinforcing its role. Cyber incidents like the 2023 fraud increase highlight digital risks, whereas cash offers reliable security. Cash is imperative during crises such as outages, supporting vulnerable populations. Further insights reveal the evolving landscape of cash in finance.
In an era marked by technological advancement and digital payment proliferation, cash remains an indispensable component of the financial ecosystem, particularly in times of crisis. The Finance (Provision of Access to Cash Infrastructure) Bill of 2024 in Ireland underscores the critical role of cash security and payment resilience. Despite the growing reliance on digital transactions, approximately 50% of point-of-sale payments in Ireland were still conducted in cash during 2024, according to the SPACE survey. This legislative effort aims to guarantee effective access to cash, emphasizing its importance in protecting economically and socially vulnerable populations.
Cash remains vital amidst digital growth, ensuring access and protection for vulnerable groups in financial crises.
The need for such measures becomes evident during power outages, which can severely impact electronic payment systems. Events like Storm Éowyn in January 2025, which left 790,000 homes and businesses without power, highlight the vulnerabilities inherent in digital payment systems. In these scenarios, cash becomes a lifeline for securing essential goods and services.
The resilience of cash as a payment method is further demonstrated during IT outages, such as the global disruption in July 2024, which severely curtailed access to banking services. Cyber security threats present another challenge to digital payment systems. The Central Bank reported a 26% increase in fraudulent payment values in 2023, totaling €126 million, with online card payments accounting for the majority. The rise in vishing incidents, as noted by AIB, further elevates concerns about the security of digital transactions.
In contrast, cash transactions offer a form of payment resilience that digital methods currently struggle to match, particularly given growing privacy concerns affecting 59% of the population. International trends reinforce the importance of maintaining cash accessibility. Sweden, despite a dramatic decline in cash usage, has initiatives encouraging cash retention.
Similarly, legislative efforts in Ireland and across Europe aim to safeguard cash as a legal tender, guaranteeing its availability during crises. As governments mandate cash acceptance by 2025, the resilience of cash payments continues to be an essential aspect of financial inclusion and security, particularly amid the uncertainties of modern threats. Consequently, cash maintains its supremacy as a robust, reliable payment method, crucial for maneuvering the complexities of today’s financial landscape.
