The National Bank of Poland has published: „Report on cash circulation in Poland in 2020”. The authors of the document paid much attention to the impact of the pandemic on consumer behavior.
As indicated in the report, the value of cash in circulation in Poland has been growing for years. As of December 31, 2020, this value amounted to PLN 321.5 billion, an increase of 34.8 percent compared to December 31, 2019. Increased demand for higher denomination banknotes was observed, mainly due to the accumulation of funds for precautionary purposes.
Due to the pandemic, trends in the value of cash in circulation have been greatly disrupted. Unprecedented demand for cash caused a challange for the National Bank of Poland to supply banks with sufficient Polish currency. As the authors of the report indicate, the bank met the challenge.
The published document indicates that consumers are increasingly making purchases online. In the second half of 2020, the number of card payments for online purchases reached over 80 million. Their value amounted to PLN 11 billion.
The report also looks at various initiatives undertaken by the National Bank of Poland to ensure the availability of cash in the market. Professor Adam Glapiński, president of the National Bank of Poland, announced actions aimed at developing the National Strategy for Cash Security. The work on this strategy focuses on key aspects of cash security, which include: universal acceptance of cash and its availability, physical security of cash, cyber security of systems critical to the operation of cash, continuity of cash supply to the market, counteraction against counterfeiting, and ensuring adequate stock of cash in terms of value and denomination structure.
Throughout COVID-19, the international discussion on the role of cash in the payment system has become more intense. Central bank analyses often refer to the need to ensure consumers’ freedom to choose their preferred means of payment.
