RBA governor Michele Bullock recently suggested cash would only be viable for the next decade or so.
Cash advocates challenge RBA governor’s view on ‘falling’ usage of traditional currency in AustraliaRBA governor Michele Bullock recently suggested cash would only be viable for the next decade or so.
The Reserve Bank of Australia says it’s committed to ensuring cash remains available to all but a recent suggestion from the central bank governor has advocates for traditional currency worried.
RBA Governor Michele Bullock recently suggested cash would only be viable for the next decade or so, triggering concern among advocates.
Armaguard, Australia’s sole cash transport provider, is facing severe financial difficulties due to declining cash usage and rising operational costs. If the company fails, cash availability could become scarce.
Bullock said the RBA is working to fix the issue of cash availability across Australia.
“At the moment, we’re trying to solve the short-term issue to make sure that cash is available — that it’s available in retailers, that people can use it and that people can access it. That’s the immediate short-term issue,” she said.
“But we’ve got to think that cash is going to be around probably for another 10 years, and we’ve got to find a way of moving to a new system that means that the distribution of cash can be undertaken and viable.”
Advocacy group Cash Welcome, which represents businesses and individuals who support ongoing cash use, argues Bullock has offered “no real solution” to maintaining cash access for those who still rely on it.
In a February hearing before the House of Representatives Standing Committee on Economics, Bullock acknowledged cash remains essential for many Australians.
“The RBA is committed to supporting the Australian Government’s policy objective to ensure cash remains a viable means of payment for as long as Australians want or need it,” Bullock stated.
Bullock acknowledged the immediate priority is keeping cash accessible but warned it may only remain viable for another decade.
“We’re addressing short-term availability — ensuring cash is in stores and ATMs. But long-term, we need a new system to keep distribution viable,” she said.
She suggested subsidies or surcharges could support cash transport but admitted charging consumers would be unpopular.
“If consumers don’t pay, someone must. It’s challenging to determine who bears the cost — banks or businesses? Cross-subsidising cash services might be necessary, but we don’t have a solution yet.”
Bullock highlighted the growing expense of cash distribution as usage declines, noting that Armaguard’s financial troubles stem from revenues failing to cover costs.
“As use of cash falls, it becomes more expensive to store, process, and distribute it,” she explained. “Currently, Linfox Armaguard is the sole provider of these services, and it’s facing significant financial pressure.”
In June 2024, an industry support package worth $50 million was brokered between Armaguard and major banks and retailers to sustain operations for 12 months.
Cash Welcome maintains that Bullock’s approach lacks a concrete, long-term solution to ensure cash availability and Armaguard’s survival. However, Bullock insists the RBA is collaborating with banks to establish a sustainable model for cash distribution.
“We’re reviewing incentives to ensure they’re fit for purpose in an evolving cash landscape,” Bullock said.
“Cash logistics — transporting money to branches, ATMs, and retailers — is handled by cash-in-transit companies. Work on more sustainable distribution arrangements is ongoing, requiring industry-wide cooperation.”
The RBA reported that Australians withdrew over $9 billion in cash during January 2025 — a post-COVID January record — rising from $8.92 billion in 2024 and $8.4 billion in 2022.
Consumer group CHOICE found 97 per cent of 13,000 Australians surveyed support a mandate for cash acceptance, with 80 per cent still using cash.
Cash Welcome pointed to international examples where governments have legislated to protect cash.
“Norway and Sweden recently passed laws mandating cash acceptance. China fines retailers that refuse cash,” the group stated. “These nations, once leaders in going cashless, are now legislating to preserve cash.
“There’s no reason to assume cash will vanish — more cash is in circulation than ever, and withdrawals aren’t declining.
“No cash means all money is digital — controlled by financial institutions.”