The Bank of England (BoE) has welcomed the independent Access to Cash review, which highlights the continuing reliance of some groups on physical cash, despite its share of overall payments being on the decline.

Commenting, BoE chief cashier Sarah John said: “We are committed to cash. Although its use is declining, many people, including vulnerable groups, still prefer to use cash. It is important that everybody has a choice about how they make payments.

“The action we are announcing today will help to support cash as a viable means of payment for those who want to use it.”

The bank is today announcing that it will convene relevant stakeholders to develop a new system for wholesale cash distribution that will support the UK in an environment of declining cash volumes.

In a statement, the BoE said that it is confident that an “effective and sustainable system” can be designed which “continues to support cash, enables competition, encourages motivation and guarantees resilience even in a lower cash usage environment”.

It acknowledged that the current Note Circulation Scheme was designed in a world with much higher usage than what is likely going forward.

“More broadly, the oversight and regulation of cash involves a number of authorities, and effective coordination is therefore desirable. We are committed to working together with HM Treasury, the Payments Systems Regulator and the Financial Conduct Authority to further understand and address, as far as possible, the concerns identified in the Access to Cash Review,” the bank concluded.

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