The saying “cash is king” may be on its way out.
The U.S. Treasury Department’s cash production hit a modern low last year, according to the New York Times. As more transactions are completed using plastic cards, the need to re-circulate currency has decreased.
More companies are accepting credit cards even in traditionally cash services such as taxis and tolls. The ease and convenience of using plastic has left cash in circulation around 2.5 percent of domestic transactions, according to the Times.
Contrary to predictions, cash will remain a staple of the American economy. From gratuities to small businesses, cash is still needed in many areas.
The inability to track cash purchases has also contributed to its popularity. However, due to cash’s declining use, the life expectancy of currency has dramatically increased.
For the first time, more $100 bills were printed than $1 bills. This is due to the rise in popularity of the $100 internationally. (CNN drops Spitzer’s show)
The Federal Reserve estimates that two thirds of $100 are kept abroad where they are held as securities.