Irish businesses are set to make a significant change as new rules, approved by the government, mandate them to accept cash. This surprising decision goes against the global trend, where many developed economies, including Nordic countries, the UK, and New Zealand, are moving away from cash transactions. The policy, part of fresh legislation, aims to ensure public access to cash, promoting financial inclusivity and preventing shoppers from being “left behind.”
A Step Towards Cash-Reliant Economies
Ireland’s move aligns it with countries that still heavily rely on cash, such as Morocco, Egypt, Greece, and Bulgaria. The new rules, slated to take effect later this year, initially apply to corner shops, supermarkets, and pharmacies. It remains uncertain if the mandate will extend to other types of establishments. Additionally, ATM companies may need to guarantee a steady supply of €10 and €20 notes, with calls to refrain from further reductions in cash machine availability.
Access to Cash Legislation
The decision to enforce cash acceptance is a result of a retail banking review in 2022, forming part of updated measures under the access to cash legislation. The move could be beneficial for the Irish public, as a Department of Finance survey in 2023 revealed that over 90% of adults regularly use cash, with approximately 25% considering it their preferred payment method.
Finance Minister’s Perspective
Finance Minister Michael McGrath emphasized the importance of preventing financial exclusion and ensuring that people are not left behind. Acknowledging the crucial role cash plays in society, McGrath expressed determination to protect its role. The decision aligns with Ireland’s commitment to maintaining a diverse range of payment options.
Contrasting Approaches in the UK
In contrast to Ireland’s stance, the UK attempted similar steps in 2019, with then-chancellor Philip Hammond pledging to keep cash available in various denominations. However, by 2023, Prime Minister Rishi Sunak refused to compel UK businesses to accept cash, citing concerns about government overreach into individual business matters. This divergence highlights the ongoing debate on the role of cash in modern economies.
Global Perspectives on Cash Acceptance
While France requires businesses to accept cash unless suspecting damage or forgery, European Union legislation recommends businesses accept cash payments unless customers willingly choose another method. The varying approaches globally underscore the complexities and ongoing discussions surrounding the future of cash in societies transitioning to digital transactions.
SOURCE: Ref Image from Daily Mail
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