Recent legislation in New York City is pushing back against the shift towards a cashless economy, as regulators move to protect physical currency as part of essential financial infrastructure.

A new rule requiring retailers to accept cash, without surcharges or refusal, reflects a wider policy trend. Governments are recognising that cash remains critical for access, particularly for unbanked and underbanked consumers.

The issue was discussed on the Payment Expert podcast, hosted by Louis Thompson, with analysis from Rachael Kennedy and Kieran O’Connor. The panel outlined why digital payment growth has not replaced cash.

Despite investment in pay-by-bank, stablecoins and AI, parts of the population still rely on physical money. Digital systems require bank accounts, devices, internet access and user knowledge, conditions not universally met.

Kennedy said the New York mandate is about inclusion, not limiting innovation, noting that payment systems must not exclude users who cannot operate digitally.

Central banks are responding with dual strategies. The Bank of England continues work on a digital pound while maintaining investment in physical banknotes, reflecting the need for both systems.

Risk factors are also keeping cash relevant. Authorities in Sweden have advised citizens to hold cash for emergencies due to potential digital outages. In Iran, instability and inflation have increased reliance on physical currency.

Power outages and system failures further expose the limits of digital-only payments.

The panel concluded that while cash use has declined, it will not disappear. Its offline reliability, simplicity and privacy ensure it remains part of the payments system.