Finnish Legislation Supports Cash
Jul 6, 2022
The Bank of Finland has set forth a legislative initiative to secure cash services and ensure physical currency remains widely accessible and usable.
In a statement saying current cash regulation is insufficient, Suomen Pankki—the Bank of Finland—outlines necessary regulation to cover availability, acceptance and depositing facilities.
The purpose of cash services is to maintain equal opportunities for Finnish citizens to participate in economic activity by using the best payment method for their purposes.
The initiative builds on guiding principles for the maintenance of cash services first published by the Bank in 2018. Preparation began in 2020, after the pandemic changed the payments landscape, focusing on securing ‘acceptability of cash as a payment instrument’ and ‘the right of citizens to make a reasonable amount of cash withdrawals free of charge, and to deposit cash in their accounts.’
Cash is an important payment method also in terms of crisis preparedness. Cash can be used as a payment method also when, for whatever reason, electronic payment methods are not functioning.
In an accompanying memorandum, the Bank observes regulation of cash services already happens in other Nordic countries, and cites ‘measures to secure a sufficient level of cash services’ have been launched in countries including the Netherlands, Latvia, Lithuania and Poland. It concludes the new legislative initiative is required to ensure cash is protected ‘before cash services shrink to a level that may be considered below reasonable for society as a whole.’
For many Finns, cash is still an important payment instrument every now and again, and some of us pay for purchases mostly in cash.