Lawmakers Clash Over Government's Role in Preserving Cash

Despite the rapid advancement of digital payments, many people still rely on cash, leading to partisan disputes over the best way to ensure consumers who need paper bills can avoid being shut out of the financial system, notes an article from American Banker. (Subscription may be required.)

"We have a lot of work to do on this issue, but we can't take a step back by removing access to cash," said Rep. Nikema Williams, D-Ga., during a House Financial Services Committee hearing Thursday on the underbanked and cash access called "Cashed Out: How a Cashless Economy Impacts Disadvantaged Communities and Peoples."

The hearing's testimony fell largely along partisan lines, with Democrats advocating government action to either require businesses to accept cash or to create a direct relationship between consumers and the Federal Reserve to ensure universal access to the banking system. Republicans and conservative witnesses pushed for fintech competition and an easier route for private companies that provide digital financial services to receive banking licenses.