Coffee Shop Rejects Cash, Central Bank Responds: It's Reasonable

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With the advancement of times, internet development has brought us tremendous convenience. In daily life, cashless and contactless payment methods have become increasingly common. In fact, mobile payment has already become the mainstream payment method, and it's estimated that many people have forgotten what paper money looks like.

Old Canadian Banknote Refused at Café

Recently, according to media reports including Global Times, a woman named Irene Nizzero from Ontario, Canada, had her old 5 Canadian dollar banknote refused when trying to pay at a café. Nizzero was using an old version 5 Canadian dollar banknote issued in 1986, while the new version 5 Canadian dollar notes have long been changed to plastic material.

The young cashier didn't seem to recognize this old banknote and called other staff members to verify it together. Nizzero told the cashier at the time that she guaranteed the old banknote was definitely real money, but the cashier still refused it out of caution. The next day, to prove that her old 5 Canadian dollar bill was genuine, Nizzero returned to the coffee shop and showed it to the manager.

Nizzero said she had previously tried to use the 1986 5 Canadian dollar bill to purchase a drink, but it was also not accepted. Therefore, Nizzero also expressed understanding of the business's approach, saying that it's normal for young people not to recognize old banknotes, and that business staff refuse old banknotes out of caution. After all, everyone now uses new plastic material banknotes or electronic payments.

Bank of Canada Responds

Later, on October 17, the Canadian Broadcasting Corporation (CBC) reported that in an email to CBC, Amélie Ferron-Craig, a spokesperson for the Bank of Canada, stated: "It is up to sellers to decide what forms of payment they want to accept, and businesses can refuse to accept paper money, or even certain denominations of paper money, as payment for goods or services."

Ferron-Craig said that businesses can decide for themselves what forms of payment to accept, and can even refuse certain specific denomination bills when accepting cash payments. For counterfeit prevention and to avoid losses, many small shops in countries including Canada will refuse large denomination banknotes. The Bank of Canada later also stated that old banknotes in people's hands can still be exchanged for new ones at any bank.

In the email, Ferron-Craig added that the 1986 banknotes incorporated security measures such as raised ink and green dots to help prevent counterfeiting. Ferron-Craig said that all old banknotes retain their value and can be exchanged for new banknotes at any bank.

Meanwhile, Nizzero said, "I don't blame the young cashier for being cautious. I had to reconsider my position, as enough generations have now passed, which also reflects that plastic and virtual mobile payments are already very popular," she said.

The Cashless Trend

Earlier, British netizens posted a notice on social media from a local Starbucks stating that they would no longer accept cash payments. From October 1, 2022, Starbucks UK would only accept card payments, contactless, or Starbucks Rewards for payment. This means that more and more brand stores no longer support cash payments. When this news came out, it raised questions among many local netizens, and the situation escalated. Cashless payments seem to be becoming a trend for Starbucks stores across the UK.

In 2020, as the COVID-19 pandemic swept the globe, to protect consumers and employees from coronavirus infection, then-CEO Kevin Johnson stated that Starbucks was accelerating plans to expand cashless payment options, predicting that mobile payments would become the primary payment method.

The transition from traditional payment methods to mobile payments is indeed convenient. In the past, when going out, you had to carry cash, bank cards, loose change, etc., which was very troublesome every time. If you didn't carry change, you had to queue and wait. But now, all you need is a mobile phone, and in some cases, you don't even need to bring a phone - just bind your account and you can pay directly with facial recognition.

Considerations for Cashless Society

However, from a reasonable perspective, cashless society inevitably brings many inconveniences to some groups, such as the elderly, people with disabilities, and consumers in rural and mountainous areas where internet access is not yet widespread enough. What are your thoughts on this? How long has it been since you last used paper money?

Image source: Internet

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