Kari Takala, Leading Adviser at the Bank of Finland’s Currency Department, predicts that cold hard cash will remain in use in the eurozone for at least 15 years.
“Many see cash as a backup system. It’s quick and convenient to use. In the future we’ll have to see how quickly mobile payment methods replace cash,” Takala told Yle on Wednesday. So far payment by mobile phones, for instance, is mostly limited to mass transit tickets and snack dispenser machines.
"Neutral approach"
Takala says the central bank does not particularly favour cash payments, but nor is trying to wean the populace off them – although manufacturing banknotes and coins is relatively costly.
“The Bank of Finland and the whole eurozone have a neutral approach to the situation. People decide for themselves what kind of payment methods they want to use in various situations. The change will be driven by market forces when the time comes,” he says.
Finland began using the euro for electronic transactions 16 years ago and cash payments 13 years ago. The 19th country to adopt the currency, Lithuania, joined the zone last week.
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