How Mints Advocate for Cash
Mar 7, 2023
The mint industry—a worldwide group of coin manufacturers—gained a new voice in 2022, and one of its key messages is that cash remains essential to financial and social stability plus democratic freedom of choice.
The International Mint Industry Association (IMIA) was founded by six mints: the Austrian Mint, the Bavarian State Mint, the Czech Mint, the French Mint, the Royal Mint of Spain and the State Mint of Baden-Württemberg.
While digital payments enjoy strong advocacy from the banks and corporations that profit from providing services, transaction surcharges, sale of customer data to third parties and more. By comparison, there are far fewer voices speaking up for the value of cash in the modern world. IMIA aims to foster resilient and sustainable cash access and acceptance in nations worldwide.
In a recent briefing paper, IMIA lays out the benefits of cash from the perspective of defending personal choice in the payment space. Firstly, it points to the resilience of critical national infrastructure, with cash remaining usable when cashless options fail due to interruptions to electrical and internet services—whether just for a few hours, or for extended periods in the case of a disaster.
Cash enjoys superior crisis resilience as a tested and trusted payment instrument with offline capability.
The paper also highlights the guarantee of privacy and protection of personal data as benefits unique to cash-based transactions. Cashless transactions, by contrast, collect a range of personal information that can be built into a profile and sold to third-party companies or used for surveillance purposes, and may expose consumers to digital fraud risks.
Cash is non-discriminatory and usable by all, including individuals who lack a bank account, do not have regular access to banking facilities, or do not wish to pay banking or electronic payment methods fees. It offers financial autonomy, supports budgeting thanks to its tangible nature (with ‘cash stuffing’ increasingly popular among younger generations), and contributes to cultural and social cohesion through the designs it depicts, reflecting a nation’s shared culture and history.
Cash is recognised and appreciated as a national, cultural and historical identity symbol. It is seen as an emblem of the state and good for the public.
Finally, the paper underscores the importance of cash to personal financial stability — acting as a store of value that’s especially important during times of national or global uncertainty—and to the financial stability of economies, serving as a ‘value anchor’ that lends public confidence to a nation’s currency.