Are We Becoming a Cashless Society?
Are we becoming a cashless society? This question has come to the forefront over the last few months as coins have become scarce and stores are having trouble providing change. It has many people that prefer using cash worried that this option will no longer be available to them.
The short answer is no, cash is not going away. It's true that cash is being used less often to make transactions, but it is still an integral part of how we do business. This is not to say that coins are currently hard to come by. There is a coin shortage due to the effects of the pandemic. Recently, the Federal Reserve acknowledged that the pandemic has disrupted the, "normal circulation patter for U.S. coin." The circulation pattern involves many different factors.
Before the pandemic, coins and cash were regularly circulated back to the treasury for dispersal to banks and businesses. Because business have shut down due to COVID-19, that flow has been impacted. Without coins transitioning back to the treasury, there aren’t as many coins to ship out to businesses where they are needed. Additionally, sales for many businesses are down and when sales are made, many stores are encouraging the use of electronic payments to cut down on the spread of germs. This means a lot less people are paying in cash. The U.S. mint also slowed down production to make the work environment safer but has since ramped up their production of coins to meet the emerging need for coins.
You can help during this coin shortage. If you prefer to pay in cash, you might want to dig through your couch so you can produce exact change. It's also a good time to empty those piggy banks. Gulf Winds can accept your coins in our drive-thru. If you have a LOT of coins, make an appointment so we can exchange your coins for bills.
There have been a lot of changes these past few months that have impacted all parts of our daily lives. The effects the pandemic has had on commerce doesn’t mean cash or coins are going away. Well, maybe the penny will be going away, but that's a conversation for a different day.
Want to read more about the trend toward digital transactions? We’ve compiled some resources: