demand for cash is rising even as use of cash for transactions has fallen and electronic payments have increased during the pandemic, a phenomenon corroborated by both The ECB and The Fed. The Bank of England summarises the “Banknote Paradox” in a report that will take about five minutes to read.
Comment: demand for cash is up, demand for gold & silver is up and Bitcoin is up. Maybe the “Banknote Paradox” is as simple as people are losing faith in some aspects of financial system. Interesting Twitter thread below.