A growing public outcry against the shift towards a cashless economy in Australia has gained momentum, with a petition gathering more than 120,000 signatures. The initiative, hosted on Change.org and called for ‘An Australian cash and banking guarantee,’ is demanding government regulation over banks that are eliminating in-person cash services and closing branches.
One major bank, Westpac, has implemented a ‘co-locating’ strategy, consolidating some of its subsidiary brands, such as St George, into existing Westpac branches. Meanwhile, the other big four banks – Commonwealth, ANZ, and NAB – have established cashless branches, directing customers towards ATMs for everyday banking needs.
In addition, the big four banks have imposed restrictions on large transfers to cryptocurrency exchanges. While the banks claim these measures are a defense against scams, critics within the cryptocurrency community argue that they are actually protecting their profits against competitors.
These developments are occurring at a time when Australia’s banking industry is experiencing immense profits, exemplified by Commonwealth Bank’s recent announcement of a record $10 billion annual profit.
The petition, spearheaded by Cash Welcome founder Jason Bryce in March, argues that the trend towards a cashless society leaves Australians without access to essential banking services. Bryce explains that such a society not only excludes groups like the elderly but also diminishes the value of cash through fees, increases vulnerability to cyber attacks, and complicates budgeting.
“No Australian town, suburb or community should be left without reasonable local access to full banking services and physical notes and coins,” asserts the petition.
Dr Chris Vasantkumar of Macquarie University further warns that going cashless is the privatization of a public asset: money.
Personal experiences have also driven the demand for physical money. Bryce recalled his own financial management improvements after reverting to cash, stating: “I found I ate better, because I wasn’t just tapping to pay for that packet of chips.”
The resurgence of using physical cash for budgeting, a well-known principle from the past, is gaining traction on platforms like TikTok. Finance commentator Nicole Pederson-McKinnon revealed a 35% reduction in spending after employing this method.
While the Reserve Bank has been monitoring the decrease in cash access points, there is currently no formal regulation in place. This is in contrast to countries like the UK, US, New Zealand, and Sweden, which have taken steps to guarantee or reinstate cash access, recognizing the potential harm to vulnerable populations such as the elderly and homeless.
As the anti-cashless movement continues to gain support, it remains to be seen how the Australian government and banking sector will respond. The petition and public outcry highlight the need for accessible banking services and the preservation of physical currency as a vital part of the economy. The debate over cash versus digital transactions seems likely to continue as Australians fight for their right to choose how they handle their money.
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