{"id":81507,"date":"2024-04-23T10:35:31","date_gmt":"2024-04-23T07:35:31","guid":{"rendered":"https:\/\/pozirk.online\/en\/longreads\/81507\/"},"modified":"2026-03-09T20:10:49","modified_gmt":"2026-03-09T20:10:49","slug":"belarusians-using-more-physical-cash-despite-effort-to-promote-electronic-payments","status":"publish","type":"longreads","link":"https:\/\/pozirk.online\/en\/longreads\/81507\/","title":{"rendered":"Belarusians using more physical cash despite effort to promote electronic payments"},"content":{"rendered":"\n

By<\/em> Ale\u015b Hudzija<\/em><\/p>\n\n\n\n

Belarusians spend every eighth rubel in notes and coins. The share of physical cash in the broad money supply has been rising despite the central bank’s effort to promote<\/strong> credit and debit cards and contactless payments.<\/strong><\/p>\n\n\n\n

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\n (Pozirk)<\/span>\n <\/div>\n <\/figcaption>\n<\/figure>\n\n\n\n

Flip side of transparency<\/strong><\/h2>\n\n\n\n

So far, the simplicity and convenience of cards and contactless payments has been obvious to people. Electronic technologies enable the government and businesses to reduce costs and increase sales and profits. The benefits seem to be mutual.<\/p>\n\n\n\n

However, digital illiteracy gave rise to new forms of fraud, such as password phishing and ATM skimmers.<\/p>\n\n\n\n

The proliferation of digital financial tools has made payments not only fast, but also traceable. Financial transactions have become transparent to banks and authorities.<\/p>\n\n\n\n

In a democratic political environment, digitization and transparency has obvious benefits, making taxation, banking and payments easy and convenient.<\/p>\n\n\n\n

But authoritarian governments can abuse transparency, as is the case in Belarus after the 2020 postelection protests.<\/p>\n\n\n\n

Authorities have imprisoned and harassed Belarusians for donations to opposition and solidarity groups from their bank accounts.<\/p>\n\n\n\n

Naturally, people start looking for alternatives. This explains the growing demand for physical cash and the tendency to keep savings in the most accessible form, such as revocable deposits.<\/p>\n\n\n\n

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\n\n Minsk billboard warning of punishment for donations\n <\/div>\n \n
\n (Pro-government media)<\/span>\n <\/div>\n <\/figcaption>\n<\/figure>\n\n\n\n

Possible causes<\/strong><\/h2>\n\n\n\n

The Belarusian economy faces major challenges because of the sanctions imposed for the government’s crackdown on opponents in 2020 and complicity in Russia’s invasion of Ukraine in 2022.<\/p>\n\n\n\n

Some banks have been disconnected from SWIFT, which has had an impact on the Belarusian financial system, forcing businesses and authorities to look for ways to circumvent the restrictions.<\/p>\n\n\n\n

Gray schemes, including parallel exports to Russia, often involve physical cash as the only available means of payment.<\/p>\n\n\n\n

Parallel exports refer to the practice of purchasing a product in one country and then reselling it in another country without the permission of the original manufacturer or rights holder.<\/p>\n\n\n\n

Gray schemes have far-reaching negative consequences for Belarus because they undermine the basic principles of doing business and contractual relations.<\/p>\n\n\n\n

The longer the Belarusian economy continues to operate in such an environment, the harder it will be to return to a civilized market based on contractual relations and mutual trust.<\/p>\n\n\n\n

Physical cash in broad money supply

<\/strong>Physical cash in broad money supply, percent<\/p>\n\n\n\n

Physical cash growth, million rubels<\/p>\n\n\n\n

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