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PwC study following the Cash Covenant

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PricewaterhouseCoopers (PwC) began a study in November 2022 into options for the market organisation and funding of the cash chain, commissioned by the Ministry of Finance and De Nederlandsche Bank (DNB). The study follows the Cash Covenant concluded in April 2022. PwC will deliver the study in February 2023.

Stacked euro coins stand on a table with euro banknotes in the background, symbolizing cash, value and money flows.

It is in the public interest to keep cash readily available and accessible. The reason for this study is that the distribution and use of cash are coming under increasing pressure.

PwC is examining the advantages and disadvantages of various options for the future market organisation and funding of the cash chain. These could include a statutory obligation for banks to keep cash in circulation, the designation of a public cash service provider, or a financial contribution from the government.

Based on the research report, the Ministry of Finance will advise the House of Representatives, after which political decision-making can take place.

Cash Covenant

The Cash Covenant was drawn up in early 2022 under the direction of DNB. Its agreements are intended to ensure that cash continues to function properly as a means of payment at points of sale. The Dutch Payments Association and 22 other stakeholders in the cash chain signed the covenant.

On 19 July 2023, DNB prepared an addendum to the Cash Covenant. The addendum contains agreements concerning the ‘freeze with the possibility of indexation’.

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