Cash and COVID-19: The impact of the pandemic on the demand for and use of cash

Arbeitspapier

Consumer spending declined significantly during the recent COVID-19 pandemic. This negative shock likely reduced spending across all methods of payment (cash, debit, credit, etc.). As well, the mix of payment methods that consumers use could also be affected. This paper is a first step in analyzing the effects of the pandemic on the demand for cash and on the methods of payment in Canada. We present insights drawn from the Bank Note Distribution System and from a recent survey conducted by the Bank of Canada in collaboration with our survey provider, Ipsos, and technical advice from Statistics Canada. We also plan to conduct follow-up surveys and analyses later in 2020 and in the first half of 2021. This work will help us assess whether any effects on demand for cash or the mix of payment methods used by consumers are transitory or persistent.

Object Details

• Language: Englisch

References and Relationships

• Bibliographic citation: Series: Bank of Canada Staff Discussion Paper ; No. 2020-6

Classification and Topics

• Classification: Wirtschaft ; Hypothesis Testing: General ; Economywide Country Studies: Latin America; Caribbean
• Subject: Bank notes ; Central bank research ; Digital currencies and fintech ; Econometrics and statistical methods

Contributors, Places and Time

• Event: Geistige Schöpfung
• (who): Chen, Heng ; Engert, Walter ; Huynh, Kim ; Nicholls, Gradon ; Nicholson, Mitchell ; Zhu, Julia
• Event: Veröffentlichung
• (who): Bank of Canada
• (where): Ottawa
• (when): 2020

Further information

• DOI: doi:10.34989/sdp-2020-6
• Handle: http://hdl.handle.net/10419/227817
• Last update: 10.03.2025, 11:43 AM CET