Typhoon Highlights the Value of Cash

The super typhoon that caused devastation across China and Vietnam has sparked discussion around the value of cash to societal resilience. In disaster scenarios where power and internet are unavailable for days at a time, physical money enables people to purchase essentials.

Typhoon Yagi caused major flooding and landslides across Vietnam and power outages in parts of China. The Hindustan Times picked up on a viral video showing residents of the Chinese island province of Hainan crowding around a makeshift generator station that had been set up to allow people to charge their phones.

Subsequent discussion praised the enterprising approach of the locals who created the charging station, but quickly turned to the risks of a cashless society in which a charged phone is required to purchase bread, water or medicine.

This realisation is a retread of that which followed floods across central China in 2021, when over one million people were displaced following record-breaking rainfall. Some residents took this as a wake-up call to be better prepared, with a list of 20 survival necessities being drawn up. The list included cash, alongside other items such as canned food, a first aid kit and walkie talkies.’

The Central Banks of Finland and Norway have also recognised the value of cash in disaster response, recommending households maintain cash holdings for use in emergency situations. In the US, experts consulted by the Wall Street Journal advise everyone to keep around $200—or around two weeks’ worth of household expenses—in cash in a secure location within their home.

Choice matters in the payments landscape, allowing people to pay via cash or cashless means depending on their personal circumstances, but when it comes to disaster preparedness, cash is always king.