How We Use Cash

Cash and How We Use It: How We Use Cash, Currency, Coin, Money

As consumer payment choices move increasingly toward electronic payment options, many consumers and economists question the future of paper currency and coin. However, in contrast to the view that cash is in decline, most indicators suggest that cash remains strong and will continue to serve an important role in our economy. In addition, cash is a payment of choice in situations when electronic payment options are unavailable. For example, when a major weather event disrupts power and telecommunication networks, many businesses cannot process credit or debit cards. In those situations, you may rely on cash to obtain the goods and services you need.

Federal Reserve’s Cash Services plays an important role in monitoring trends in usage and implementing innovative ways to improve the operational efficiency of the cash payment system. In this section, we’ll share current economic research on the future of cash, and how the Federal Reserve works to ensure we meet the needs of the marketplace on a daily basis and in times of stress.