Cash is King
‘In total, £3.32bn in cash was deposited and withdrawn at Post Office counters in July, £100m higher than in June.
Personal cash withdrawals, at £801m, were up almost 8% month-on-month and up more than 20% year-on-year.
It is the highest amount since records began five years ago, and only the second time that personal cash withdrawals have exceeded £800m. The last time was December 2021, and there's always an increase in withdrawals around that time of year, the Post Office said.
The Post Office put the extra volume of withdrawals at its 11,500 branches down to more people turning to cash to help manage their budgets on a week-by-week and often a day-by-day basis.’
Central bankers have been trying to eradicate cash since before the plague. It appears that the demand for cash ( a legal means of exchange ) is powering back.
Tax Farmers in Whitehall don’t like cash , it is too difficult to predict tax take and just as difficult to collect direct from your bank account.
The direct debit system is also falling into disrepute, some utilities take it days early / whenever they fee like it.
A private purchase/deal paid in cash is in essence cutting out the government in the transaction and they really don’t like it.
Any money left in savings accounts is too great a temptation for Government, always remember the ‘Cyprus’ haircut carried out by the Cypriot Government.
Andrew Withers FRSA