What’s next for cash in the face of increasingly new and faster payment methods?

Robrecht Vandormael, Secretary General of Payments Europe, the association representing the card payments sector in Europe, was a guest at the 17th European Economic Congress in Katowice.

We talked to him about the concept of introducing Central Bank Digital Currencies (CBDC), the perception and adaptation of modern forms of payment both in Poland and in Europe, and the future of cash.

What's next for cash? We're using it less and less, but it will remain an important means of payment

Robrecht Vandormael pointed out that for several years now, we have been seeing a decline in the use of cash throughout Europe. Poland is a great example of this.

- I believe that cash can still play an important role in our society, despite the increasing digitalization of payments . I also see that interest in electronic payments is growing. Our latest study shows that cash is still used sporadically by consumers. According to our analysis, 90% of consumers in Poland used cash sporadically in the previous year - said the Secretary General of Payments Europe.

"While we see a decline in the use of cash, it is still a means of payment and we should assume that it will remain that way in the future . A cashless society is definitely an interesting vision, but I don't think it will be possible to eliminate cash completely ," he added.

Robrecht Vandormael also referred to the results of the "True Value of Payment Cards" study conducted on the Polish market by Payments Europe.

- Compared to the rest of Europe, Poland is one of the most developed markets in terms of payment digitization. I think that 70 percent of surveyed consumers declared that in their opinion Poland is the most innovative and most developed country. Secondly, respondents emphasized the huge diversification of the Polish payments market - said the expert.

Central Bank Digital Currencies - Still More Questions Than Answers

In the opinion of the Secretary General of Payments Europe, central bank digital currencies (CBDC, Central Bank Digital Currency) are, in his opinion, a strictly retail product.

- If it were to be created, we would be dealing with a new payment method that would function on a par with payment cards, cash and fast payments. So it is something that could potentially revolutionize the functioning of the market - Vandormael pointed out.

- Of course, this raises further questions. How can we create a competitive remuneration system using central bank digital money? How can we use it offline? How can we ensure the privacy of payments? Since it is supposed to be a cash substitute, it would be good to answer the question about the limits of ownership and its impact on financial stability - said the expert.