• Login/ out
  • My Account
  • Register

Top Menu
Shop Menu

  • HOME
  • SHOP
    • Deal of the Day
    • Blowout Specials
    • Unique Deals
    • Deals on Decimal & Paper Money
    • Royal Canadian Mint
    • Just Released Products
    • Auction
    • Gold, Silver & Copper Bullion
    • Canada Decimal Coins
    • Canada Rolls 1960 to Date
    • Canada Paper Money
    • Maritime Coins & Bank Tokens
    • Perth & New Zealand Mints
    • United States Decimal & Sets
    • World Coins and Paper Money
    • Coin Supplies
    • Mega Specials
    • Gift Ideas
    • Our Ebay
  • SELL TO US
  • AUCTION
    • Consign with us
  • CONTACT US
    • Shipping Information
    • Privacy Policy
    • Terms of Sale
    • FAQ
  • MEET OUR TEAM
    • History
  • COLLECTORS CORNER
  • BULLION CORNER
  • Deal of the Day
  • Blowout Specials
  • Unique Deals
  • Deals on Decimal & Paper Money
  • Royal Canadian Mint
  • Just Released Products
  • Auction
  • Gold, Silver & Copper Bullion
  • Canada Decimal Coins
  • Canada Rolls 1960 to Date
  • Canada Paper Money
  • Maritime Coins & Bank Tokens
  • Perth & New Zealand Mints
  • United States Decimal & Sets
  • World Coins and Paper Money
  • Coin Supplies
  • Mega Specials
  • Gift Ideas
  • Our Ebay
  • Bullion Corner

  • HOME
  • SHOP
    • Deal of the Day
    • Blowout Specials
    • Unique Deals
    • Deals on Decimal & Paper Money
    • Royal Canadian Mint
    • Just Released Products
    • Auction
    • Gold, Silver & Copper Bullion
    • Canada Decimal Coins
    • Canada Rolls 1960 to Date
    • Canada Paper Money
    • Maritime Coins & Bank Tokens
    • Perth & New Zealand Mints
    • United States Decimal & Sets
    • World Coins and Paper Money
    • Coin Supplies
    • Mega Specials
    • Gift Ideas
    • Our Ebay
  • SELL TO US
  • AUCTION
    • Consign with us
    • Current Auction
    • Featured Items
  • INFO
    • Canada’s 150th
    • Contact Us
    • Shipping Information
    • Privacy Policy
    • Terms of Sale
    • FAQ
    • Days Closed
  • About Us
    • History
    • MEET OUR TEAM
  • COLLECTORS CORNER
  • BULLION CORNER
Contact Us| Login/Out | My Account | New User
 
View Cart
Click for the BBB Business Review of this TBD in Kitchener ON
Shopper Approved | Colonial Acres Coins PayPal | Colonial Acres Coins MasterCard | Colonial Acres Coins Visa | Colonial Acres Coins
Is Canadian Paper Money Making a ComebackIs Canadian Paper Money Making a ComebackIs Canadian Paper Money Making a Comeback

Is Canadian Paper Money Making a Comeback?

June 22, 2021 by Colonial Acres Coins

Last Updated on June 22, 2021 Posted by Colonial Acres Coins

When the COVID-19 outbreak forced more people to stay at home and turn to online sources for most purchases, many experts predicted that the pandemic would just accelerate the world’s march toward the death of cash. Surprisingly, however, Canada has seen a significant post-pandemic increase in the amount of paper money in circulation. In this blog, we’ll look at how this cash comeback occurred and why the demand for Canadian paper money has increased.

The Push for Paperless

For decades, people in Canada and much of the rest of the world have been moving away from using paper money as their primary means of completing financial transactions. The days when people, for example, paid their water bills by visiting the water utility in person with cash in hand are long gone. Even paper checks have become somewhat obsolete, with more and more people turning to alternatives such as debit cards, direct deposit, online banking and money-transfer apps, and other virtual payment services.

In light of this trend, experts and pundits predicted that the world was close to witnessing the demise of paper currency. In some countries, banks and businesses stopped accepting cash altogether. 2018 saw many citizens of Sweden start handling financial transactions through microchips implanted into their arms. In 2019, we even wrote a blog post about the global push for a cashless society and what that might mean for Canada and the value of Canadian bills.

The Pandemic’s Puzzling Effect

The COVID-19 pandemic caused an increase in online shopping, and consequently, higher use of alternative payment methods, and fewer paper money transactions. The death of cash seemed even more imminent. Instead, the pandemic resulted in a steady increase in demand for paper bills, in Canada and around the globe.

Although the volume of cash transactions declined sharply during the pandemic, the Bank of Canada reported that the amount of Canadian paper money in circulation rose from $83 billion before COVID-19 to more than $96 billion as of September 2020. The Bank estimated that the pandemic caused an approximately $8.4 billion increase in circulating paper bills and predicted that this heightened demand for paper money is likely to continue. What could be driving this paradoxical uptick in the need for tangible cash?

Possible Explanations for Canada’s Cash Comeback

On a global scale, the COVID-19 pandemic somehow caused a drop in cash-based transactions and, simultaneously, a rise in the demand for paper money. Economists have posited a range of theories as to why and how, though they agree on two of the primary driving forces:

1. Increased Cash Hoarding

The COVID-19 pandemic ushered in a period of major uncertainty, and a normal human response to uncertainty is to hoard resources to create a safety net. Many people, concerned about bank closures, lockdowns, potential medical bills, and possible job loss, withdrew as much cash as they could to protect themselves and their families. Since this paper money wasn’t being spent, it created a void in the economy. Banks and retailers suddenly needed more cash than they had on hand, triggering an increase in paper money printing.

2. Fewer Cash-Heavy Venues

Businesses where people tend to use paper money, such as bars and restaurants, were hit particularly hard by the pandemic and the resulting safety restrictions. Many cash-heavy venues either remained closed to the public or had to operate on a limited basis. Because these venues took in less cash, they also deposited less cash, and this reduced cash supply caused an increased demand.

The Future of Canadian Paper Money

The factors behind the push for a cashless economy still exist, but the COVID-19 pandemic substantially changed Canada’s economic landscape and people’s attitudes toward paper money. To learn more, or to add to your collection of valuable Canadian paper bills, check out our large selection of collectible and sought-after Canadian currency.

Filed Under: Paper Money

SHOP NOW!

Categories

  • Bullion
  • Canadian Coins
  • Coin Supplies
  • Jewelry
  • News
  • Paper Money
  • Royal Canadian Mint
  • Superman Coins
  • Uncategorized
  • World Coins

Blog Archive

  • January 2023
  • December 2022
  • November 2022
  • October 2022
  • September 2022
  • August 2022
  • July 2022
  • June 2022
  • May 2022
  • April 2022
  • March 2022
  • February 2022
  • January 2022
  • December 2021
  • November 2021
  • October 2021
  • September 2021
  • August 2021
  • July 2021
  • June 2021
  • May 2021
  • April 2021
  • March 2021
  • February 2021
  • January 2021
  • December 2020
  • November 2020
  • October 2020
  • September 2020
  • August 2020
  • July 2020
  • June 2020
  • May 2020
  • April 2020
  • March 2020
  • January 2020
  • December 2019
  • November 2019
  • October 2019
  • August 2019
  • July 2019
  • June 2019
  • May 2019
  • April 2019
  • March 2019
  • February 2019
  • January 2019
  • December 2018
  • November 2018
  • October 2018
  • September 2018
  • August 2018
  • July 2018
  • June 2018
  • May 2018
  • April 2018
  • March 2018
  • February 2018
  • January 2018
  • December 2017
  • November 2017
  • October 2017
  • September 2017
  • August 2017
  • July 2017
  • June 2017

Recent Posts

  • Why Invest in Gold Bullion
  • The Significance Behind the 2022 Peace Dollar Rose Gold Plated Coin
  • Polar Bear $2 Canadian Coin Is the Latest in the “Bigger Picture” Series
  • Learn more About the Royal Canadian Air Force Red Knight Coin
  • Colonial Acres Is Always Buying! Here Are Some Tips When Selling Jewellery
    footer-logo

    991 Victoria Street North
    Kitchener, Ontario, Canada
    N2B 3C7

    Toll Free: 1-888-255-4565

    Tel: 519-579-9302

    Fax: 519-340-1381

    info@colonialacres.com

    MENU

    • Home
    • Sell To Us
    • Auction
    • Collectors Corner
    • Bullion Corner

    ABOUT US

    • History
    • Meet Our Team

    SHOP

    • Royal Canadian Mint
    • Canada Decimal Coins
    • Canada Paper Money
    • Gold, Silver & Copper Bullion
    • Canada Rolls 1960 to Date
    • Deals on Decimal & Paper Money
    • Jewellery

    Read Our Blogs

    STORE HOURS

    Mon - Fri: 9:30am - 4:30pm
    Sat: Click here to see Saturday hours
    Sun: Closed

    MORE INFO

    Contact Us
    Shipping Information
    Terms of Sale
    Privacy Policy

    Facebook Icon | Colonial Acres Coins Click for the BBB Business Review of this TBD in Kitchener ON
    Copyright © 2013 Colonial Acres Coins. All Rights Reserved. Built with Volusion.