Diversified payment method doesn't mean refusing cash

The People's Bank of China recently announced punishments for those refusing to accept cash payment in renminbi in the third quarter of 2023, imposing penalties on three units and persons who refused to accept cash. At the same time, it announced a six-month special campaign to ensure nobody refuses payment in cash.

Making payment by scanning QR codes has become increasingly popular in recent years, replacing cash payment for shopping, dining, refueling, buying tickets and other activities. However, this has led to some merchants refusing payment in cash citing higher cost of receiving cash as well as security concerns. There is even a viewpoint that mobile payment has become so commonplace that cash payment has become unnecessary.

Although this sounds like a plausible argument, it actually isn't. As the national legal tender, renminbi paper bill remains the most basic instrument of payment. It is crucial to ensure people's payment demand under diversified payment conditions, especially in response to emergencies and natural disasters. By refusing to accept payment in cash, the merchants or service providers are not only depriving consumers of the choice of payment, but also harming the image of the legal currency. It is also not conducive to creating a market environment that benefits fair competition.