- Isidoro J. Alanís, President and CEO of the Global Exchange Group, has participated as an expert at the Round Table: “Online and cash money: the future of cash money in society”
- This meeting was organised and moderated by the online Spanish newspaper El Confidencial in cooperation with Aproser, the Private Security Industry Professional Association.
- Madrid, July 22, 2019. – Isidoro J. Alanís, President & CEO of Global Exchange Group, the Spanish multinational specialised in the provision of currency exchange services at international airports, was one of the guests to this meeting organised and moderated by the online Spanish newspaper El Confidencial in cooperation with Aproser. Under the motto: “Online and cash money: the future of cash money in society”, they tried to answer the following question we have been asking for years: When will arrive the day credit cards will replace banknotes and coins?
It is not the end for cash money. Moreover, this end is still many years, even decades, away. The reasons for this are the security, the profitability and the expense liberty the cash provide without implying any illegal activities have been committed. “We have to be real with people: none of our generation will see the end of money cash”, said Isidoro J. Alanís, President of Global Exchange Group.
The guests’ opinion is absolute: cash money is not going to disappear any time soon because of all the advantages it has comparing the new payment methods. And to illustrate that idea, they provided this data. “The first trimester of 2019, a 1.9% more cash was moved in Spain a 4.6% higher value than in the same period in 2018”, exemplified Eduador Cobas, general secretary of the Aproser Group. “96% of Spaniards think they have the right to choose which payment method to use”, he added.
“According to the surveys we work with, 53% of Spaniards prefer to use cash”, said Concha Jiménez, group general manager of the cash and deposits department at the Bank of Spain. She also point out the increasing of the money currently in circulation in four countries in our vicinity, unlike the Scandinavian countries. “Transactions are one of the main usage of cash money, but it is also used as deposit value”, she said.
Santiago Carbó, economics professor at the CUNEF University in Madrid and director of financial studies, also stand up for the idea that cash money won’t disappear any time soon. “They say society would be safer without cash, but the truth is that, nowadays, it is easier to get your card duplicated than receive a counterfeit note”.
Since 2007 the circulation of notes and coins has tripled”, which invalidate the theory that they are less and less used. Why would we force 70 year old person who lives in the countryside who can’t use another payment method? According to Mr Alanís, the average amount of money a customer exchange at Global Exchange is 180 euros and nowadays it still is the “only payment method that can be used by 100% of the population”.
In words of the assistants, the outbreak of e-Commerce did not lead to the disappearance of cash money. There are options to pay a purchase once you receive it at home —”it is what the Spanish mail service Correos has been doing since forever with its cash on delivery option”, said Alanís— and all the attendants point out some cases where banning traditional cash money has posed conflicts with the law.
But, according to the assistants, there are other reasons why we should still use traditional notes and coins. Natural disasters or something as normal as a blackout in a big city are another proof that other payment methods are not enough in some cases, as they required some infrastructure that may remain unusable after such incidents. The last significant case was only a few days ago in New York, where there was an energy blackout that lasted 4 hours.
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