Treasurer Jim Chalmers reveals reason for shock move to keep cash alive despite rapid rise in digital payments

 Treasurer Jim Chalmers has revealed the reasoning behind the Australian government's unexpected decision to continue circulating physical cash, despite the rapid rise of digital payments. In a statement, Chalmers emphasized that maintaining access to cash is crucial for inclusivity, ensuring that all Australians, regardless of their technological access or financial situation, can participate in the economy.

The government is particularly concerned about vulnerable groups, such as the elderly and those in remote areas, who may not have reliable access to digital payment systems or who prefer the security and simplicity of cash transactions. Chalmers highlighted the importance of preserving a "cash safety net" for these populations, especially as digital payment methods like tap-and-go and online banking continue to dominate.

While the government is committed to supporting digital payment systems for their efficiency, the move to keep cash in circulation aims to balance technological progress with the need to ensure no one is left behind. This decision comes as part of a broader discussion on financial inclusion, security, and the future of money in Australia.

Chalmers also noted that the decision to preserve cash aligns with efforts to safeguard privacy in financial transactions, as some digital payments may raise concerns about data security and surveillance. The ongoing conversation will likely continue to evolve as the country adapts to the rapid changes in the global financial landscape.