Decades of falling cash use is being undone virtually overnight. New studies show that 53 percent more American adults are using cash compared this time in 2022.
There are many reasons for it, and Economist Dr. Ray Perryman does not think any of them cause the move to stick.
"I do not think it is a long-term trend, but it is something certainly not surprising right now," he says. "In times of uncertainty, there is a tendency for people to move to cash...and we are certainly in one of those right now."
This rise in cash use is primarily a result of a sputtering Biden-led economy, rising interest rates, and dramatic inflation.
"It is primarily a phenomenon of people struggling to make ends meet, making sure they do not overspend," he says. "The best way to make sure you do not overspend? Have it in your pocket. If it is not there, you cannot spend it."
The same study shows over two-thirds of people admit digital payment methods make them overspend.
Perryman does say that the online spending sector takes a hit during times like this, but things will likely surge back to normal when interest rates lower again.
"Some cards, with the new hike, indicating rates of over 20 percent...that encourages more people to pay as they go," he says.
Of course, online banking and spending is a much-preferred method for most, because it is easier. Some have even suggested a cashless society, or just a full digital currency.
Perryman does not foresee that coming to fruition.
"There will always be situations where cash is a better option," he says.
As with almost everything in our world now too, Artificial Intelligence may play a large role in more future banking issues, and further increase cash use.
"As technology advances, we face increasing issues. We have seen banks, and other groups, invest a fortune into cyber security...A.I. would give a new tool to folks who would want to try and hack into a bank, or something like that," says Perryman.