Digital Payments for Cash Professionals Training Workshop
The world of electronic payments is exciting and complicated. Ever want to know more about how the payments infrastructure works and what’s next in the payments landscape? Come learn why these developments matter for you and your cash operations, whether you are a retailer, a banker, or a CIT operator.
Currency Research is well positioned to bridge the gap between payments and cash with four (and growing) payments conferences in our expanded offering, and with experienced payments professionals now on the team. This educational workshop is intended to update cash industry professionals on the latest developments in the complex domain of payments.
Attendance: All welcome (50 person capacity)
Date: Monday 16th March, 13:45-17:00 (includes coffee break)
Facilitated by Currency Research, De Nederlandsche Bank will hold a closed door summit for Central Bank attendees only. After an introduction from DNB, attendees will be split into groups aimed at mixing Central Banks from different regions to help in the sharing of knowledge, challenges and solutions between all regions.
The topics proposed by DNB for this years workshop are:
- The Role of Central Bank Money in the Economy
Central bank money is the safest asset and means of payment. Electronic bank money follows close thanks to supervision and deposit guarantee schemes. Central bank money offers citizens still a choice who to trust, including trust in the use of payments data. At normal times the public is usually not much aware of the differences of money, however during the financial crisis we have seen a run into cash. If that were no longer possible due to a move towards cashless, the citizen can no longer take his money out of the system to hold it. Moreover we may lose cash as an anchor to commercial bank money. Central banks think about digital central bank money to overcome such challenges, however lots of issues still have to be sorted out.
- The role of Commercial Banks in Providing Cash Services
More and more banks see cash as an old fashioned, costly product in their portfolio. They try to nudge customers away from using it, not only for reasons of cost, but also for getting more consistent customer transaction data. Newly all-digital banks even do not offer cash services at all. If banks push cash aside or away, do we need to force banks to continue offer cash services? And how to do that in a practical manner and respecting level playing field? How to avoid cash services becoming overly expensive? Could banks actually refuse cash as a basic service?
- The Role of Cash as a Fall Back
Cash also functions as a fallback payments instrument. Despite the usually high levels of availability of electronic payments instruments, risk of an operational failures at the bank, the processor or the network will never disappear including the risk of a cyber-attack. Cash has a number of unique features for it to continue functioning: it is trusted by the public, widely accepted, offers final settlement, is decentralized and always works. Of course citizens need to have cash with them, or rely on a nearby ATM. That means the ATM needs to work despite of the electronic payment disturbance. Another challenge is to keep a dense network of ATM’s for the fallback function even if cash would be rarely used in a couple of years’ time.
- Moving Towards a More Sustainable Cash Cycle
There are several ways to further improve the sustainability of the cash payment chain on the production, infrastructure and circulation of both banknotes and coins. For the production, we could ensure to use more sustainable materials both on the material properties and on the way it is sourced. For banknotes we can move towards 100% sustainable cotton while also improving coatings to extend their life cycle, thus requiring fewer banknotes to be destroyed. For coins, reducing the amount of copper and improving the recirculation of existing coins should be the focus points. Our current cash infrastructure can become more sustainable by switching to eco-friendly fuels in transport and reducing the power usage of ATMs. Even bigger improvements could be possible by supporting more local circulation. Examples include cash recycling machines installed in stores, in-store cash machines to be filled by retailers and apps that guide users in need for cash to shops that have enough cash available.
Attendance: Central Bank attendees only (50 person capacity)
Fee: free to attend
Date: Monday 16th March, 10:00-13:00 (includes coffee break and lunch)