Measurement and Use of Cash by Half the World’s Population
IMF Working Papers, March 17, 2023
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- Measurement and Use of Cash by Half the World’s Population
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Bibliographic details
- Authors: Tanai Khiaonarong, David Humphrey
- Published: March 17, 2023
- Series: IMF Working Papers
- DOI: https://doi.org/10.5089/9798400237799.001
Summary findings
- The use of cash for payments is not well measured.
- The authors view "the value of cash withdrawn from ATMs, or as a share of all payments," as a more accurate and timely measure of cash use compared to:
- the standard measure of currency in circulation, and
- currency as a ratio to GDP.
- These two measures are compared for 14 advanced and emerging market economies.
- When aggregated, the trend in cash use for payments is currently falling for half the world’s population.
- Such a measure can help inform policy decisions regarding central bank digital currency (CBDC) and regulatory decisions concerning access to and use of cash.
Measures and methodology
- Primary proposed measures:
- Value of cash withdrawn from ATMs.
- Value of cash as a share of all payments.
- Comparators used:
- Currency in circulation (standard measure).
- Currency as a ratio to GDP.
- Sample:
- 14 advanced and emerging market economies (as compared in the paper).
Key implications and policy relevance
- A payment-focused measure of cash use provides a timelier and potentially more accurate signal of how cash is actually used in the economy than aggregate currency stocks.
- Policy decisions that can be informed by such measures include:
- Design and deployment considerations for central bank digital currencies (CBDC).
- Regulatory decisions concerning access to and use of cash.
Content in this bundle
- Working Paper