THE POTENTIAL DECLINE OF CASH USAGE AND RELATED IMPLICATIONS
This course is divided into two parts.
The first part analyzes cash and noncash payment systems, and the second analyzes potential outcomes if cash were to be significantly displaced as a commonly accepted form of payment.
Part I describes the characteristics of cash and the various electronic payment systems that could potentially supplant cash.
The noncash payment systems include traditional electronic payment systems such as credit cards or payment apps, and alternative electronic payment systems, focusing on private systems using distributed ledger technology such as cryptocurrencies and central bank digital currencies which are only under consideration by central banks at this time.
We will examine the advantages and costs specific to each payment system and the potential obstacles to the adoption of alternative electronic payment systems.
We will then analyze the potential implications of a reduced role of cash payments in the economy, including potential benefits, costs, and risks.
The course also includes two international case studies of economies in which noncash payment systems rapidly expanded.