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Are we close to the end of physical money? Coins and banknotes are practically disappearing in these countries — Executive Digest

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Are we close to the end of physical money?  Coins and banknotes are practically disappearing in these countries — Executive Digest

At present, the number of payment alternatives in addition to physical money such as credit cards, payment with applications or mobile phones is increasing, and well-known coins and banknotes are gaining ground.

However, ElEconomist explains, there is evidence that, despite the apparent growth of other forms of payment, physical money continues to hold. According to the European Central Bank (ECB), almost half of all payments, 48%, are made using banknotes. In the US, the US Federal Reserve has noted that money in circulation has even reached an all-time high.

There are countries that are discussing this issue, and some countries are testing formulas for moving to a fully digital model. A Spanish website has compiled a list of cases where money could be on the brink of extinction.

Sweden:

Despite having the oldest central bank in the world, it has been leading the fight against physical money since the beginning of the last decade. Between 2011 and 2020, Swedish citizens reduced their use of cash from 39% to 9%. With companies, banks and other institutions refusing to accept payments in coins or banknotes, Sweden would be quite willing to move away from cash if rural areas didn’t resist its decline.

At the same time, the Swedish government is at the same time trying to slow down the transition by asking citizens to keep money at home.

Norway:

Norges Bank, the country’s central bank, has released figures that Norwegians only use banknotes or coins for 3 to 4% of their transactions, and the lack of physical liquidity in the country is a concern, so although they are about to achieve full digitization, they are trying to stop this is.

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The Norwegian Consumer Protection Agency has already received complaints about the inability to pay for bus tickets or cafes in cash in the center of the capital, and the country’s Pensioners’ Association has also warned of the concerns this raises among a less digitized population.

Netherlands:

It is one of the countries not only in Europe but also in the world with the most development in this aspect, with a share of cash payments below 24% compared to 52% in 2005, 40% in 2011 and 30% in 2015. . . .

Data from the Dutch Payments Association shows that card usage for payments now exceeds 75%, with mobile payments up 30% last year.

In this case, banks are the biggest drivers of total digitalization to cut costs at branches and ATMs. In the Netherlands, 89% of customers are already digital, compared to the European average of 60%.

China:

The country is becoming so digitized in this regard that the People’s Bank of China is imposing fines on public and private institutions that refuse to accept cash payments in order to “protect citizens’ rights to use cash.”

The latest survey by the region’s central bank shows that 66% of payments in the region are made using a mobile phone, compared to 23% in cash. At the same time, the percentage of card payments is even less: only 7% of transactions.

South Korea:

Since 2016, the country has been trying to digitize payments, which is why cash in circulation is only 40% of the total, which is an all-time low. Of the total number of transactions in the country, only 17% are made in physical money.

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Canada:

In the country led by Justin Trudeau, Visa said citizens are “ready to move away from cash” as Canada “has one of the highest penetration rates of credit card payments in the world (70%)”. As a percentage of total transactions in 2021, only 17% were made with physical money. Cards make up 60% of transactions and electronic payments 12%.

Australia:

The latest report from The Global Payments explains that the country is accelerating its transition to cash, which will account for just 2% of all transactions by 2025. From 75% in 2007 to around 30% in 2019.

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Economy

Do you want to apply for a home loan? Banks will limit the maximum amount they are allowed to lend to 30%

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Do you want to apply for a home loan?  Banks will limit the maximum amount they are allowed to lend to 30%

The increase in Euribor rates will limit the maximum amount banks are allowed to lend, and cuts could be around 30% as early as next month, Público reported on Monday. Debt reduction will also particularly affect those with lower incomes or less savings, who, subject to current regulations, will be required to guarantee at least 10% of the purchase price of the property, in addition to transaction costs. .

The duration of contracts, limited by the age of persons at the time of applying for a loan, is another factor that makes it difficult to access new loans. According to Eupago’s modeling, a loan intermediary, a couple aged 30 with a net monthly income of 1,800 euros, without inheritance or other loans, could receive a loan of 226 thousand euros in January last year, payable at the age of 37. . But a rate hike of 2% would mean that the same couple would only be able to fund themselves by 163,500 euros in September – 28% less. If the increase in Euribor reaches 2.5%, a value that can be reached next month, the amount will drop to 154.2 thousand euros.

The reasons? First, the increase in Euribor rates associated with most new home loans in Portugal, as well as the limits imposed by the Bank of Portugal since 2018 (when Euribor rates were negative) to limit the risk of household over-indebtedness. Banco de Portugal should not change the formula for calculating DSTI with a 3% increase, but says it is monitoring the situation. “As a macroprudential body, it monitors macroeconomic and financial developments and will continue to monitor compliance with the recommendation, as well as promote changes to it, always with the aim of improving its effectiveness,” the regulator told the daily newspaper.

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Economy

DHL with ‘great difficulty’ invests $50 million in Lisbon

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DHL with 'great difficulty' invests $50 million in Lisbon

Portugal could be a “much bigger gateway” for DHL’s business than it is today, said Dinheiro Vivo, CEO of DHL Express John Pearson, on the sidelines of the 2022 Trade Growth Atlas launch in Brussels, noting that there are business opportunities in the country’s largest distribution and logistics group in the world. However, the group has been trying “for years” to set up a new logistics terminal in Lisbon, but to no avail.

“We have been trying for many years with the ANA and the airport administration to create a new infrastructure, I think we are close to this. Our planes,” he emphasizes. DHL has grown “very fast” and has a “very healthy business with a very high market share” in Portugal, with good prospects “especially in the consumer segment”, which Pearson said could create “more terminals and jobs”.

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Economy

Iran cut off internet access… Elon Musk will give connection

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Irão cortou o acesso à Internet... Elon Musk vai dar conectividade

As we reported hereThere was a massive internet outage in Iran yesterday during a series of mass protests against the government.

After this action, Elon Musk posted a message on the social network Twitter, from which it follows that he is already activating his Starlink satellite network to allow Internet access in this country.

Elon Musk: Outfit [rede] Starlink for Internet access for Iranians

Iranians are facing massive internet shutdowns due to anti-government protests. Loss of connectivity, preventing access to platforms such as Instagram and WhatsApp, makes it difficult to organize demonstrations as well as share information about government crackdowns.

Elon Musk wasted no time and was quick to point out on Twitter that he was "helping [rede] Starlink...", in response to another message also posted on the social network Twitter by US Secretary of State Anthony Blinken, in which he revealed that the White House had given permission for Internet companies to provide their services to Iran.

Iran cut off internet access... Elon Musk will give connection

He recalls that the protests in Iran began on Friday last week after it became known about the death of 22-year-old Masha Amini after being detained by the Vice Police for wearing a veil placed in a way that agents considered wrong.

State television IRIB reported 26 deaths in clashes with police. The Iranian government has severely restricted internet access, and in recent days, mobile networks have been switched off from 9pm to morning.

On Thursday, the US sanctioned the Vice Police for the death of a young woman and seven security sector leaders for cracking down on demonstrations.

It should also be noted thatIranian citizens are banned from accessing Facebook, Telegram, Twitter and YouTube, despite the fact that many bypass these restrictions through a VPN.

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