1. Future directions: role of cash and non-cash
Antti Heinonen
16 November 2012
Joint ECB-MNB conference
Budapest

2. Value of POS transactions at terminals/cash withdrawals at ATMs in euro area
Source: ECB Statistical Data Warehouse

3. Development and growth rate of euro banknote circulation

4. Euro banknotes in circulation between 2002 and September 2012 (billions of pieces)

5. The specific properties of cash
Medium of exchange
General acceptability
No infrastructure needed and immediate settlement
Ease of use and monitoring
Privacy
Store of value
Confidence
Fallback in contingencies

6. Conclusions
The gradual shift from cash towards non-cash payment instruments will generally continue.
New technologies benefit both cash (e.g. ATM and payment cards) and non-cash. The efficiency of retail payment system can be further enhanced by developments in technology.
The future roles of cash and non-cash depend on the public confidence, and therefore both should ensure their availability and security.
Cash is part of the national infrastructure, and central banks should strengthen the cash distribution chain and prepare for various contingencies which have an impact on the payment systems.

7. Thank you for your attention!
Antti Heinonen
16 November 2012
Joint ECB-MNB conference
Budapest