CBB Governor: Cash still has a place in economy

Even though alternatives to cash such as credit and debit cards and mobile wallets are increasing in popularity and appear to be replacing traditional payment instruments, there will always be a place for cash in the economic atmosphere.

This assurance came from Governor of the Central Bank of Barbados, Cleviston Haynes, as he delivered remarks during the launch of the Currency Exhibition, which took place at the Exchange Interpretive Centre, Central Bank yesterday morning.

Given the growing popularity of alternative payment instruments, the Governor said the Bank understands the need to adapt in general, and adapt to the requirements of the digital age.

He explained that being able to collect and make payments more efficiently is a key part of the transformation that the economy will undergo, and it has the potential to enhance productivity and overall competitiveness.

It is for this reason, he said, that the CBB is committed to working with Government to improve the payments infrastructure, including through the reduced use of cheques and cash.

However, the Governor stated that while they aim to reduce the use of cash, they could not ignore that the currency in circulation in Barbados currently is about seven per cent of our GDP.

“While cash remains relevant now, it is facing increased competition as an instrument for payments. We do believe however that there will remain a place for cash..."

He stated that the importance of retaining some level of cash is widely acknowledged, as even countries like Sweden, which is leading the world in the adoption of alternative forms of cash, acknowledged this. He added that the Deputy Governor of the Central Bank in Sweden made reference to the fact that cash will always be beneficial.

“Cash can no longer be king, but it will remain in the mix,” he said.
(CLF)

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