Cash vs CBDC: why cash still matters

Cash is the last form of money that doesn't report on you. Here's what we lose if it disappears.

Cash is old-fashioned, inconvenient and slowly disappearing. It's also the only money you can use without asking anyone's permission and without leaving a record.

Privacy

Paying cash tells nobody what you bought. Every digital payment, by card, app or CBDC, leaves a record somewhere. That record might be well protected. It still exists.

No permission needed

Cash works without a bank account, a phone, an app, a battery or an internet connection. Nobody can decline your transaction, freeze your wallet or decide you've spent too much this month.

Resilience

When the network goes down, cards and apps stop working. Cash keeps working. Several countries now tell citizens to keep some cash at home for emergencies.

Inclusion

Millions of people, often older or poorer, depend on cash. A cashless world quietly shuts them out.

Where CBDCs fit

Central banks pitch CBDCs as "digital cash". Some designs try hard to copy cash's privacy, especially for offline payments. But a digital system run by the state can always, in principle, be changed to see more or allow less. Cash can't.

Digital cash that's actually like cash

The closest thing to cash online isn't a CBDC. It's private crypto like Monero: no issuer, no permission, no record of who paid whom.

FAQ

Is cash being banned?

Not outright in most places. The risk is cash fading away as fewer shops take it.

How can I help keep cash?

Use it, and support laws that protect the right to pay with it.

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