January 12, 2021 – The International Currency Association (ICA), representing the global currency sector, has confirmed its submission to the European Commission consultation on uniform rounding rules for cash payments, which aims to assess the impact of introducing uniform rounding rules for cash payments in the euro area as well as the discontinuation of 1- and 2-euro cent coins.
The ICA’s contribution elaborates specifically on a number of points aimed at ensuring cash continues to play its role as a public good, including:
The importance of maintaining all the existing denominations of euro cash – 1 and 2 eurocent coins, as well as the high-denomination banknotes – in order to safeguard the right of citizens to use cash at no detriment.
Maintaining 1 and 2 eurocent coins as a strong cultural identifier with the euro and the important role that these denominations play in the development of financial literacy for the youngest among European Union citizens.
The importance of treating different forms of payment equally in order to guarantee true consumer choice. This entails not singling out one form of payment for rounding rules – in this case, cash – which would discriminate against users of cash compared to those using other means of payment.
Jutta Buyse, ICA Director General, comments, “The introduction of rounding rules, as well as the accompanied possibility of discontinuing 1- and 2-euro cent coins, could mean that those who pay in cash pay more. This would, in turn, undermine the important role of cash as a public good for European citizens.”
Buyse continues, “The importance of cash as a public good must be placed at the center of any considerations concerning the future of cash. Cash is an essential factor for personal freedom and privacy, as well as social and financial inclusion for all groups of society. As such, the ICA defends all forms of cash worldwide, and where the euro is concerned, for all its existing denominations, including the 1- and 2-euro cent coins as well as the higher denomination banknotes.”
Commenting further on the consultation and its goals, Buyse adds, “The ICA believes that the future of payments, and of cash in particular, should be part of an ongoing societal dialogue, and we commend the European Commission for consulting the public before considering initiatives that would affect the use of cash in the eurozone. We stand ready to contribute further to the discussion.
