Part 2: Interview with ICA Director General Frane Maroević Cash: What would the end of banknotes, bills and coins mean for the skilled trades?

This article is Part 2 of an interview originally conducted by handwerk magazin with Frane Maroević, Director General of the International Currency Association (ICA). Republished here by Cash Matters, it focuses on the wider stakes: what a cashless future would mean for sovereignty, the risks of total dependence on digital networks, and the role of governments and central banks in ensuring a balanced payment ecosystem.

What does a cash-poor or cashless society mean for sovereignty?
Cashlessness means placing national and personal payment capability into the hands of private, often foreign corporations. That means: access, fees, rules and even data use are no longer decided in one’s own country, but in the boardrooms of global platform companies. Cash is the only means of payment that stands under public control. It is issued by a central bank and is available for all. Whoever abolishes this option gives away a piece of economic and political sovereignty. For the individual that means: less freedom of choice, less privacy, more dependency. For states: a loss of control over part of their critical infrastructure.

What risks does full dependence on digital systems carry?
We are not speaking here of theoretical scenarios. We have already experienced failures, disturbances and payment stoppages in many countries. Digital systems always have a “single point of failure”: A technical defect, a cyberattack or a network outage can paralyse checkouts nationwide. Added to that: fees, contract terms and technical standards are set externally. And whoever controls the data flows indirectly steers the customer relationships. Cash eliminates this cluster risk: It is decentralised, independent and always ready for use, even when digital networks fail.

Which groups would be particularly affected by a cash phase-out?
Cash is indispensable for inclusion. It remains the only fully accessible, universally accepted means of payment that requires neither an ID nor a credit check nor technology. Cash is understandable, anonymous and immediately effective. It requires no contracts, passwords or hardware. That reduces friction in everyday life and protects from accidental exclusion. Therefore, it is especially important for vulnerable or marginalised groups. These include the elderly, lower-income people, new arrivals, people without an account or with limited access to devices and networks.

But also digital users are affected as soon as infrastructure fails – that is no marginal issue. In rural areas, network quality also plays a role. For us as ICA it is clear: Whoever wants to pay today must be able to do so without hurdles – regardless of income, affinity for technology or residence status. For small businesses this has tangible advantages in everyday life: fewer cancellations at the till, fewer explanations, more customer closeness. Digital procedures remain important, but they do not replace these qualities in every situation.

Should access to cash be legally guaranteed?
Yes, the ICA strongly supports a legal guarantee. Without such, the reduction of the cash infrastructure is only a matter of time, driven by cost optimisation and business interests. Once branches and ATMs disappear, they usually do not return. And if merchants are no longer legally obliged to accept cash, acceptance often dwindles quickly and irrevocably. Therefore, a legal safeguard is no luxury, but a basic prerequisite for supply security and freedom of choice.

How should central banks and governments manage this field of tension?
They must recognise the risks of a cashless society and promote a “dual ecosystem”. This should support digital innovation and at the same time preserve a robust cash infrastructure. That includes:

• reliable cash-cycle infrastructure
• transparency and supervision in questions of fees and market power in private networks
• interoperability and failure preparedness

What is important is openness to technology: no favouring of individual business models, but a regime that allows competition, creates transparency and understands redundancy as a quality feature. In this way arises a payment ecosystem that is efficient – and crisis-proof.

What does a balanced payment system of the future look like?
Hybrid, open and resilient. Digital procedures bring speed, data and convenience. Cash delivers resilience, inclusion and protection of trust. A good system combines both. In this way no market-dominating structures arise, costs remain within limits and users have a real choice. For skilled trades and commerce that means: operational control authority and calculable processes. For citizens: payment options with and without data trace. And for states: sovereignty that is not delegated to private networks.

Missed the first part? Read it here: Frane Maroević on Securing Payment Freedom and the Future of Cash