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<p>The Government remains closely engaged with the financial regulators, including
through the Treasury-chaired Joint Authorities Cash Strategy Group, to monitor and
assess risks around cash relating to COVID-19.</p><p> </p><p>It is too early to predict
what permanent impacts the COVID-19 pandemic will have on cash usage and payments
more broadly. However, it is reasonable to expect that knock on changes in how people
purchase goods and services, and social distancing measures, have accelerated the
decline in the use of cash, as people have become more comfortable with other forms
of transactions and payments, for example contactless card payments.</p><p> </p>During
the COVID-19 pandemic, there has been an increase in the value of notes in circulation;
the Bank of England considers this may be because of banknotes being held for contingent
purposes. The return of coin to banks by businesses and the public has varied from
its usual pattern. As a result there has been a greater demand for new coin from the
Mint than forecast prior to the pandemic.
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