Artificial Intelligence (AI) roared into the public consciousness in 2023. Its widespread use and, more importantly, its potential have become visible to all, not just the small specialist user community that has been working on it for years. Clearly, AI is of great interest to central banks from the policy makers through the cash issue department.

One thought that came from the Future of Cash conference was the need to understand digital payments more. A recent conference paper from Vietnam does just that as it examines why people in the developing world move to digital payments by studying the uptake of mobile money services in Vietnam.

The latest International Monetary Fund (IMF) has published a blog which highlights its Central Bank Digital Currency (CBDC) Virtual Handbook. It draws attention to the explosion of interest in CBDCs and the need to design them appropriately.

The Future of Cash conference was one of those rare opportunities to step back and think. A series of experts presented data, research and conclusions from the real world about cash and its role in the payment hierarchy.

Uniquely amongst payment options, cash offers people payment privacy. A key part of the debate about Central Bank Digital Currencies (CBDCs) is about the extent to which a CBDC can mimic the privacy achieved by cash. A new Bank for International Settlements (BIS) working paper considers designing CBDCs for privacy protection and data governance1.

Mastercard’s CFO, speaking recently at a UBS conference, has raised issues with India’s Unified Payment Interface (UPI) system. Describing it as ‘fantastic at many levels’, he also said it was an ‘incredibly painful experience’ for its ecosystem participants.

Bancomat AB was registered in 1968 in Sweden, and it is the second oldest ATM operator in the world. It was incorporated in 2010 and is owned by Danske bank, Nordea, Handelsbanken, SEB, Swedbank and some savings banks.

Two recent pieces address the usefulness and role of CBDCs. One explores the theoretical benefits of a CBDC in a high inflation environment, the other the impact of a CBDC if a loss of confidence in the banking system leads to a run on the banks.

The International Mint Industry Association (IMIA) has issued a position paper on the European Commission’s (EC) draft regulations on the legal tender of euro banknotes and coins. The paper also refers to the EC’s proposals about a possible digital euro. Although supportive of the initiative, the IMIA highlights a number of concerns.

The Emerging Market and Europe ATM and Cash Summit in Dublin focused on the future role of ATMs in a changing world. In addition to the keynote speech by the Dutch National Bank, supported by a Geldmaat presentation, Bancomat from Sweden, LINK from the UK and the ECB also covered the changing role of cash.

The Reserve Bank of Atlanta has made some observations about the Merchant Risk Council’s 2023 Global Ecommerce Payments and Fraud Report.

Moody’s Investor Service has published a report on ‘Decentralised Finance and Digital Assets’. In it, it has raised concerns that the Aadhaar identification system, which is based on biometric technologies, is unreliable due to India’s hot and humid conditions, resulting in ‘service denials’.

As noted in the summary of the recent Emerging Market and Europe ATM and Cash Summit in Dublin, the focus was on understanding the future of ATMs in a changing cash environment. As such there was a strong ‘Future of Cash’ feel to the agenda alongside more technical ATM perspectives and topics.

The Bank for International Settlements (BIS) has used decentralised finance (DeFi) technology concepts on a public blockchain to trade and settle hypothetical euro, Swiss franc and Singapore dollar wholesale CBDCs across borders between simulated financial institutions.

An International Monetary Fund Financial Access Survey has confirmed that Ugandan banks are switching their spending to digital channels and away from branches and ATMs. There has been an exponential growth in mobile money services.

At the recent ATMIA Emerging Markets and Europe ATM and Cash Summit, the Dutch National Bank (DNB) presented on access to cash.

Geldmaat spoke at the ATMIA summit following on directly after the Dutch National Bank. It described how it came into being and the challenges it faces.

The Centre for Economic Policy Research (CEPR) has published a paper questioning whether the design of the digital euro could already be undermining its chances of success.

Australia’s fifth largest bank, Macquarie Bank, has announced that from November 2024 it will no longer handle cash and will also end cheques.

The Future of Cash conference typically attracts some 120 participants from central and commercial banks, CIT and cash management companies, academics and other cash cycle stakeholders. The 2023 event takes place 6-8 November in Istanbul.