‘Gone in 10 years’: RBA boss under fire following major call

An advocacy group has hit back at claims from Michele Bullock during her latest appearance in front of Australia’s parliament.

An advocacy group has fired back at claims cash will no longer be a viable option in the near future.

Speaking at a parliamentary grilling in Canberra RBA governor Michele Bullock says cash won’t be around much longer.

“At the moment, we’re trying to solve the short-term issue, to make sure the cash is available … that people can use it, that people can access it,” she said.

“But we’ve got to think that cash is going to be around probably for another 10 years, and we’ve got to find a way of moving to a new system that means that distribution of cash can be undertaken and viable.”

Ms Bullock says cash will be a thing of the past in 10 years time. Picture: NewsWire / Nicholas Eagar

Cash Welcome founder Jason Bryce said there was little evidence Aussies were using less cash.

“If Michelle Bullock thinks cash will disappear in Australia within ten years, the RBA needs to provide some evidence to back up those big words,” he said.

“This a negative market signal and a clear sign that policy makers have not yet come to the conclusion that cash needs to stay in circulation.”

Mr Bryce said despite the government making a commitment to legislated cash from January 1, 2026, there are still real threats to the legal tender.

“Policy makers must start from the premise that cash is here to stay, or provide clear evidence that there is a replacement for cash that is private, reliable and trusted by everyone,” he said.

Ms Bullock said the crux of the problem is with the cost of distributing cash rising at the same time as less people wanting to access it.

The Cash Welcome group confirms the vital role cash plays in society. Picture: NewsWire / Nicholas Eagar

However, she didn’t believe asking consumers to pay to use cash would “go down well”.

Commonwealth Bank was forced to pause its implementation of a $3 withdrawal fee for customers attempting to access cash from a branch in December. Bendigo Bank also copped criticism for implementing a similar $2.50 fee.

While banks would most likely have to absorb the costs of transporting and holding cash, Ms Bullock said the Reserve Bank was also reviewing the interest it paid to banks for providing cash in the community.

Mr Bryce said the gap in logic from the RBA is that there is no viable alternative payment system to banknotes that’s private, instant-settlement, reliable and trusted.

“Clearly there is no replacement payment method likely to be developed in the foreseeable future that enjoys the vast support and trust of Australians,” he said.

“If Ms Bullock and banks keep saying cash is in demise, their policy solutions for the cash in transit will be band-aids, not real long-term solutions.”

Originally published as ‘Gone in 10 years’: RBA boss under fire following major call