March Newsletter Entry - Ros & Patrick Journals
Ros Rice, Executive Officer February Journal Entry
The End of Cash?
Lately I’ve been involved with a very interesting group of people around an advisory table to the Reserve Bank. This is called the CBDC Forum. (The Central Bank Digital Currency Forum). We’ve had interesting discussions together, including one around the relevance of cash in Aotearoa.
My understanding is that just 18% of Kiwis still use cash, and that number is falling. We can spend time (and we have) talking about why this has happened. Increasing convenience of digital payments, the surge in contactless payment trends and the growth of e-commerce have all contributed to this downward trend.
However, many people keep cash in their homes in case of emergencies (technology is great but it’s known to crash!), so it’s still out there, even if it’s not in distribution. Plus, cash offers a tangible and accessible means of exchange, especially for those who may not have access to digital banking services.
The CBDC Forum is there to explore what might happen over the next 5-10 years as cash use gets less and less. There’s a lot of research out there, but my main takeaway is that although cash use is going down, the Government are not looking to replace it. Cash will still be out there and if it works for you, you can use it if you wish.
The Central Bank has been very clear that they are considering cash alternatives but they are not planning in any way to remove the option to use cash.
In answer to my initial question, the end of cash? The answer is no. At least not for the foreseeable future. My advice would be to hold onto some cash in a secret place at home too, you never know when you might need it.
Patrick Davies, Engagement Officer Hot Take
Keep on Swimming!
It’s March and we’re fully underway! CNA has a lot going on, well, don’t we all. We’re not the only ones trying to achieve miracles with the difficulties attempting to drown us. In amongst all this our members can expect a call from me. It’s one of the ways we keep up with what’s going on at the coal face (we need a new term for that). There’s the usual check that we have your up-to-date contact details, but its more about the chat. We’d like to know what your 2024 is going to look like.
This enables us to find out who has similar problems and maybe some similar solutions. Hopefully we can connect you with like-minded organisations. At the least we can see what common issues are rising for everyone in this sector. This is how we ended up creating the Tick for Governance course – which over 900 people have completed or are currently going through. It’s a fantastic way to get everyone on your governance body on the same page. The course also gives you a micro credential which shows funders that you’re strengthening the organisation’s skills.
It also led to the development of our Better Banking project and to the extremely successful research that produced the Better Banking Report. There has been an awesome response, not only from sector organisations, but also some varying groups and interested parties in the financial sector. Has anyone else noted that, since the beginning of the year, a number of banks are now providing better online information for Incorporated and Non-Incorporated societies and Trusts? Weird how that happened, eh!
With the survey on the State of the Sector opening soon you’ll have yet another way to effect change – we all know how the Beehive likes stats. Whether they listen or not is up to them, and it is always a positive experience being backed up by the numbers – those are hard to argue against. Not to mention there’s the chance to win a petrol voucher if you contribute.
So, we really hope you’re all on board to fill out the survey in amongst all the other mahi you’re achieving. The Tick for Governance course, The Better Banking Report, the State of the Sector Survey, and our members having a chat with us are all waka on the surface of the sector. They carry our mahi forward and onto better horizons.
Thanks for getting on board!
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