COLUMN: On Parliament Hill – Cash – A path forward

Whether getting weekly groceries, paying for gas, or seeing a movie, Canadians increasingly rely on some form of digital currency. But cash in many situations and circumstances is still king.

A cashless society narrows access, centralizes control, and can exclude the marginalized and the vulnerable.

For some, cash is their only way of participating in the economy. In Canada, roughly six million people—18 percent—are unbanked or underbanked. When businesses refuse cash, people are denied basic services. When it comes to buying essentials, that denial is a serious disservice and beyond inconvenient. A compassionate society does not explicitly exclude identifiable communities.

When enough businesses refuse cash, consumer choice disappears.

Still, many establishments increasingly do not accept cash.

Cash, on the other hand, requires no electricity, no network and no middleman. It functions when systems fail. Eliminating cash as a functional option would be disruptive and even uncaring.

My private member’s Bill 276, an act to establish a framework for the continued access to and use of cash in Canada and to make related amendments to other Acts, aims to support Canadians who would otherwise be excluded and to encourage provinces to continue to make cash accessible and usable.

The bill would mandate the minister of finance to review all existing laws and policies affecting access to cash and then establish a national framework across Canada. Being able to make cash deposits and withdrawals would need to be factored in, along with the removal of barriers that discourage the use of cash.

For many, this bill is vital.

For those experiencing homelessness, cash is their means of survival. Without a permanent address or stable identification, digital banking would not be possible for them. Cash is immediate, which means access to food and necessities can be immediate.

Another group to consider is our seniors. We want to preserve the autonomy of our seniors as long as possible. Some of our beloved seniors rely on cash not just because it is routine, but also because it provides a sense of security. It is visible—something that can be held and exchanged. Cash is easily managed.

Digital currency, on the other hand can be complicated and introduce exposure—to fraud, coercion, and financial abuse. Cash, however, is trusted and familiar. It allows for personal independence without needing to rely on third parties.

Similarly, sight-impaired individuals cannot use digital currency without the help of a third party.

Indigenous communities are also reliant on cash. Limited internet access and sparse banking services make digital payments unreliable. Such factors can be coupled with a lack of trust in institutions.

For survivors of domestic abuse, cash contributes to their safety net. Digital transactions leave trails. Accounts can be monitored, restricted, or emptied by an abuser. Cash provides anonymity and mobility. Social workers working with survivors encourage them to have an exit strategy. Cash is the best way for that to happen.

For anyone living in rural regions, access to banking services is noticeably declining. While bank branches are being closed, people are forced to access high fee alternatives such as payday lenders. Such costs are considerable.

But besides the exclusion of identifiable groups, cash is the only payment method that does not generate a data pathway. Every digital transaction produces a digital footprint, information that can be stored, analyzed, or exposed. As cyber breaches become more common and systems fail, cash remains the most reliable option.

The bill also amends the Bank of Canada Act to ban the issuance of a central bank digital currency (CBDC). Digital currency continues to be a discussion around the world, with some countries having adopted their own central bank digital currency. Over the last several years, the conversation about CBDCs has only intensified. After the Bank of Canada concluded their report on a central bank digital currency, they deferred to the federal government’s lead for such legislation.

Allowing for the permanence of cash gives choice, autonomy, and privacy.

Cash works when technology fails.

Protecting the right to use cash is what a prudent society does. It protects the rights of the vulnerable and marginalized.