Summary

The Framework on the Access to and Use of Cash Act aims to ensure cash remains available throughout Canada by reviewing existing laws and creating new rules overseen by the Minister of Finance. The bill seeks to address cash accessibility issues, especially for individuals with limited access to digital banking or those who prefer cash for privacy reasons.

What it means for you

This legislation could impact various groups, including:

• Individuals in rural areas: Those living far from banks may benefit from increased access to cash services.
• Elderly citizens or those without digital literacy: People who are more comfortable with cash transactions may find this bill protects their financial choices.
• Small businesses: They might face new regulations regarding cash handling, which could be added costs.
• Non-profit organizations: These entities may receive support in overcoming barriers to cash transactions.

Expenses

The bill is likely to incur costs for both the government and citizens:

• Government costs: Expanding cash infrastructure (e.g., ATMs, bank branches) could strain public resources, particularly during a shift toward digital payments.
• Business expenses: Increased cash handling requirements could lead small businesses to incur higher costs, potentially leading them to limit cash transactions, which could harm those who rely on cash.
• Potential loss of innovation: By prohibiting a digital dollar, there may be long-term costs related to missed opportunities in modernizing financial services.

Proponents view

Supporters appreciate this bill for several reasons:

• Inclusivity: They argue that ensuring access to cash is vital for those unable to use digital banking.
• Financial stability: Proponents believe it protects consumers from the risks of shifting entirely to digital systems.
• Accountability: The structured review process is seen as a way to adapt and respond to changing needs, ensuring the cash framework remains relevant.

Opponents view

Critics voice several concerns about the bill:

• Financial implications: They argue that the costs of maintaining and expanding cash infrastructure could strain public resources.
• Innovation stifling: Limiting the Bank of Canada from issuing a digital dollar may prevent Canada from keeping pace with global trends in digital finance, potentially leaving the economy less efficient.
• Transaction limitations: The cash-focused framework may lead businesses to push towards cashless transactions to save costs, marginalizing those who rely on cash for their daily transactions.