Assets & Types of Money

Privacy: It ensures the user’s freedom and autonomy. Banknotes and coins are the only form of money that people can keep without involving a third party. 

Legal currency: Just because digital payments are trendy, doesn’t mean cash shouldn’t be used. Although many businesses started to refuse the use of cash during the pandemic and that trend has continued, cash and coins are still legal tender. 

Inclusivity: Financial inclusion in terms of digital payments is a big topic for fintechs and banks aiming to draw in more customers and users. But for many emerging market populations, and many demographics within developed economies, cash is still a vital transactional currency. 

Tracks spending: Many studies show that although electronic transactions can provide seamless records of spending, the psychological processes of breaking a banknote to make a purchase means the spender will be mentally tracking their purchases more keenly.

It’s secure from online fraud: While carrying around large amounts of cash isn’t always practical, it does mean the user is safe from a large number of frauds and crimes that only occur in the digital transactional space. Of course, this is offset through accidental loss and physical theft, which can occur, but which is less likely considering the amount of online fraud currently occurring. 

It provides flexibility: Using cash for small person-to-person purchases is often much easier and faster than using an app. Cash is also an essential tool in teaching children about the values and use of currency in a clear and tangible way.