For many years now, there have been numerous efforts to ensure that using cash is no longer an option. Keeping that in mind, one has to wonder why Americans are hoarding cash as of late.
Ongoing financial concerns regarding COVID-19 have forced the hands of central bankers.
US Citizens are Hoarding Cash
Instead of working toward a sustainable solution, they have all issued piles of cash.
Pumping this money into the financial system is done to reboot the economy during tough times.
This time around, however, it seems to have a very different effect.
Volatility in financial markets has not diminished by any means.
Moreover, American citizens now hold more cash than they have done in recent years.
Considering how this trend is more apparent compared to the year of the most recent financial crisis, it tells quite an interesting story.
Figuring out what this money will be used for exactly, is a different matter altogether.
More and more businesses are trying to dissuade customers from using cash altogether.
If it cannot be spent there, it seems unlikely that it will be deposited into bank accounts again.
Hoarding the money for a rainy day may prove to be the most viable option.
At the same time, that will hamper any recovery for the US economy as well.