BBC Radio London - discussing the increase in cash payments in the UK
The Return of the Mattress Bank — Why Cash Is Back and Why That’s a Damn Good Thing
In the digital age of tap-and-go, smartphone wallets, crypto fantasies, and pandemic-era plastic hygiene, cash was declared dead—buried under mountains of contactless transactions, QR codes, and fintech buzzwords. But now, in a twist that should make Big Tech and government surveillance hawks nervous, the British pound in its physical form is staging a defiant comeback. And it’s not just nostalgia—it’s common sense.
Cash is freedom. Cash is control. And in an increasingly unstable world, cash is insurance.
From Obsolete to Essential
Back in 2011, more than half of all transactions in the UK were done in cash. Fast forward a decade, and that number had plummeted to just 15%. Forecasts predicted it would shrink to a measly 7% by 2032. But now, something is shifting.
According to Victoria Cleland, Chief Cashier of the Bank of England, Brits are stockpiling paper money. Why? Because the world’s on fire. War in Ukraine. Chaos in the Middle East. The specter of Trump 2.0 and his weaponized trade wars. Looming pandemics. Cyberattacks knocking out major retailers like Marks & Spencer. Power outages in Spain and Portugal that left entire regions cut off from digital transactions.
When systems collapse, plastic melts.
People want something real under their mattress—something that doesn’t rely on a stable grid, a functioning internet connection, or the goodwill of a government’s central server.
The hard truth? When the lights go out, so does your digital wallet.
Three Million Reasons Cash Still Matters
Nationwide, the UK’s largest building society, recently reported a stunning 10% increase in over-the-counter and ATM cash withdrawals—nearly 3 million transactions in 2024 alone. That’s the third year in a row of rising demand.
It’s not a blip. It’s a signal.
After years of decline, the appetite for physical currency is rising from the ashes of the COVID economy. And here’s the kicker: the average amount withdrawn per transaction? £112. Not peanuts.
And it’s not just fear of system collapse or cyber chaos. It’s also about budgeting. With inflation squeezing households, cash gives people something digital apps and credit cards can’t: discipline. You can’t overdraft a tenner in your wallet. You can’t digitally “accidentally” spend half your weekly groceries on a delivery app when you’re counting actual coins.
For low-income Brits, cash isn’t just a preference. It’s a lifeline.
The War on Cash: A Class War in Disguise
And yet, the war on cash continues.
Trendy bakeries like Gail’s argue that going cashless is “eco-friendly” and “efficient.” What they really mean is: easier to control, easier to track, easier to exclude.
Cash doesn’t spy on you. Cash doesn’t come with terms and conditions. Cash doesn’t require ID, a bank account, or a credit score. One million UK residents don’t even have a bank account—many of them migrants, the homeless, or the working poor. What happens when everything goes cashless?
They disappear.
Yes, critics point to crime and tax evasion. Sure, cash can grease the gears of shadow economies—just like it always has. But let’s not pretend digital payment systems are crime-free. Money laundering, crypto scams, data breaches, algorithmic abuse of financial data—this isn’t a moral crusade. It’s a power play.
And the poor are losing.
Cash as Culture, Cash as Choice
There’s also something deeply human about cash. Something cultural. Something the elite technocrats sneering at cash payments from their iPads in gated communities don’t get.
In Britain, cash is part of the nation’s identity. The face of the sovereign—once the Queen, now King Charles III—graces every note. These are not just tools of trade; they are symbols of continuity in a country obsessed with tradition.
The new polymer banknotes carry images not just of Charles III, but of national heroes: Churchill. Jane Austen. Turner. Alan Turing. You don’t load their legacy into a Venmo account.
The Fight for Payment Freedom
A legislative proposal in Westminster seeks to force retailers to continue accepting cash, just like in Switzerland, where physical money is a protected form of payment. Labour MP Kate Osborne is pushing to make it law. And she’s right:
“Paying with cash is a fundamental right. If you’re on a low income and need to budget, cash is a tool. Even if many don’t use it anymore, everyone deserves the freedom to choose.”
Choice. Freedom. Resilience.
Those are not just buzzwords for the next TED Talk—they’re the building blocks of survival. When your app goes offline, your bank locks your account, or your nation enters a cyber war, guess what keeps you fed and moving?
A fiver in your pocket.
Conclusion: Stack Bills, Not Just Skills
This isn’t about being anti-technology. Digital payments are convenient. But convenience is not the same as security. And in an age of systemic fragility—from climate breakdown to war to economic volatility—you’d be foolish to trust everything to “the cloud.”
Plastic was nice in the pandemic. But it’s time to get real again.
Keep cash. Budget with it. Hide it. Prepare it. Use it.
Because when the system fails, the chip in your card won’t save you. But the crumpled banknote in your sock just might.
Resist the cashless future. Keep it analog. Because in a world of rising risks, resilience starts in your wallet.
Sources & Further Reading:
No comments:
Post a Comment