Deputy governor Sir Jon Cunliffe warns of long-term decline in places where bank notes can be spent.
Cash is to become “less useable” as shoppers embrace the internet and high street stores increasingly reject bank notes, the deputy governor of the Bank of England has warned.
Sir Jon Cunliffe said that it will become harder to spend physical money in coming years owing to the rise of online shopping and contactless payments.
He added that it is therefore essential for Threadneedle Street to press ahead with developing an electronic version of sterling – the so-called digital pound – which can underpin future confidence in the financial system.
Speaking at the Innovate Finance Global Summit on Monday, Sir Jon said: “Cash is likely to decline further and cash itself will become less useable in everyday transactions, for example if internet commerce grows and if merchants increasingly accept only digital payment.”
The mass shift away from physical cash to electronic payments has been “very clear” and is set to continue, he added.