As cash usage declines, UK lawmakers consider mandating businesses to accept physical currency to protect vulnerable consumers.
Highlights:
- Declining Cash Acceptance: The UK Treasury Committee warns that businesses refusing cash could create a two-tier society, disadvantaging vulnerable groups.
- Potential Legislation: Lawmakers suggest that if voluntary cash acceptance continues to decline, regulations may be necessary to ensure accessibility.
- Global Precedents: Countries like Norway and Sweden have introduced laws requiring businesses to accept cash, highlighting the importance of financial inclusivity.
Summary: The UK Treasury Committee has raised concerns over the declining acceptance of cash in retail and service industries, warning that it could lead to financial exclusion for vulnerable groups, including the elderly and those without access to digital payments. While the government currently has no plans to mandate cash acceptance, the Committee suggests that intervention may become necessary if businesses continue to phase out physical currency.
The report also highlights global examples, such as Norway and Sweden, where legislation has been introduced to ensure cash remains a viable payment option. As the UK moves toward a more digital economy, policymakers are urged to monitor cash acceptance levels and consider regulatory measures to prevent unintended consequences.
