The Bank of England has been urged to launch an investigation following the discovery that at least £50 billion in banknotes has gone “missing”.
Critics argue that the bank is unaware of who holds this cash and what it is being used for.
According to Meg Hillier, the chair of the House of Commons Public Accounts Committee who oversees the government’s finances, the money is “stashed somewhere but the Bank of England doesn’t know where, who by or what for — and doesn’t seem very curious.”
Meg added that the Bank of England “needs to be more concerned about where the missing £50 billion is.”
It has been assumed that this money is either being used by criminals, is stashed away in homes or is being used abroad.
The demand for cash was expected to have plummeted thanks to the ease of digital payments via card and systems like Apple Pay but the demand for notes has continued to increase.
This is despite the fact that only 30 per cent of transactions made last year were made using cash.
The coronavirus pandemic drove down the use of cash machines and cash in transactions but there have also been trends of stockpiling seen in the UK in which people have actively endeavoured to keep cash at home due the limitations caused by the virus.
In response to the missing cash, the Bank of England said, “Members of the public do not have to explain to the Bank why they wish to hold banknotes. This means that banknotes are not missing.”
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