Pro-Cash Potential in the US for 2024
Jan 30, 2024
Throughout 2023, cities and states across the US advanced laws defending choice in payments, recognising cash as a financial bedrock that supports social inclusion, economic resilience and much more. Today, we look ahead to what 2024 might hold for America’s money.
Closing out last year, Wisconsin and Los Angeles were the latest regions moving to enshrine the right to pay for goods and services with cash in law. In these and other places introducing pro-cash legislation—such as Atlanta and Washington D.C.—ensuring all residents have fair access to goods and services is a high priority. Councilwoman Heather Hutt, who introduced a motion to ban cashless business in LA, says she wants to ‘empower’ all residents to participate in the city’s economy, especially lower-income residents, who may be denied access to credit and unable to open bank accounts.
The city must remain vigilant in ensuring that our economy is inclusionary and accessible to everyone. In order to ensure that all city residents—including those who lack access to other forms of payment—are able to participate in the city's economic life we should adopt an ordinance that allows them to pay cash for goods and many services.
Cash distribution network Loomis adds that alongside supporting inclusivity and freedom of choice, some pro-cash legislation is aimed at addressing problems around security and identity theft, such as Illinois’ SB1979 Bill, in which the emphasis is on the benefits of cash as a private and unhackable method of payment.
Looking to 2024 and beyond, with Statista stating inflation is at an ‘exceptionally high eight percent’ and predicting it will persist above the target two percent for years to come, cash will continue to have particular significance within the economy for individuals using it as a budgeting aid, and those wanting to hold it as a physical store of value in uncertain times.
Additionally, as the frequency and severity of major natural disasters—defined as those costing over a billion dollars—continue to rise, America stands to benefit from the resilience of cash, with which payments can be made offline and in the absence of electricity, enabling people to buy essential goods and services during emergencies.
Beyond individual cities and states introducing legal protection for the right to pay cash, 2024 may also see progress for the bipartisan Payment Choice Act reintroduced to the Senate by Rep. Donald. M. Payne, Jr last year, which could extend cash protection nationwide. This above all would ensure every American enjoys freedom of choice and financial inclusion, and can benefit from the resilience and security offered by cash. As the US Treasury summarises: ‘The United States should seek to maximise user choice and take steps to preserve the ability of consumers to use cash.’