When the Digital World Fails: The Critical Role of Cash

On July 18, 2024, the world experienced a digital shockwave. A faulty software update from CrowdStrike, a cybersecurity firm, crippled systems across the globe.  

“Significant incidents like the CrowdStrike events are infrequent,” said David Weston, VP of Enterprise and OS Security at Microsoft.  

Despite infrequency, the ramifications were staggering. Airlines grounded flights, hospitals faced operational challenges, banks struggled to process transactions, and even emergency services were impacted.

As the New York Times reported, “It is more apt to ask what was not affected. Everything from airlines to banks to health care systems in many countries was hit.”

With so many essential businesses and services brought to a halt, consumers and business owners alike are asking the question: How do we better prepare for the next inevitable emergency? 

The Resilience of Cash

When digital infrastructure crumbled, cash transactions became a lifeline. While the convenience of digital payments is undeniable, the recent outage underscored the critical role of physical currency.

Cybersecurity expert J.J. Guy, CEO of Sevco, observed in a New York Times article that "bugs happen all the time and are unavoidable, the result of business complexity and technology."

The failure of digital systems highlights the need for a balanced approach to payments. Cash plays a crucial role in ensuring business continuity and consumer confidence. 

Preparing for the Unexpected

Businesses must recognize the potential for disruptions and incorporate safety-net cash handling practices into their overall risk mitigation strategy. Maintaining adequate cash reserves can safeguard operations and customer satisfaction. By diversifying payment options, businesses can reduce their vulnerability to system failures. 

Keeping Cash Alive: The Consumer Perspective

It's crucial to remember that the ability for stores to accept cash is only one side of the equation. For a cash-based transaction to occur, consumers must also have access to and choose to use cash. Not only does cash ensure consumers have access to goods during emergencies and digital disruptions—cash provides financial inclusion, allowing individuals without bank accounts to participate in the economy. Cash also offers privacy and security and can be a tangible tool for budgeting. Ultimately, without consumers using cash, the infrastructure to support it becomes less relevant. This is why individual states have even begun to take action to protect cash for consumers through legislative efforts.  

The Payment Choice Act, introduced in both the House and Senate in 2023, is a significant example of this growing protection. The bill mandates that retail businesses accept cash for in-person sales of $500 or less and prohibits charging higher prices to cash-paying customers. This legislation underscores the importance of cash as a fundamental payment option and ensures that consumers retain the freedom to choose how they spend their money. 

Cash Handling When You Need It

Loomis understands the importance of cash in a world increasingly reliant on digital technology. The company commitment to business continuity extends beyond cash management, with robust contingency plans put in place to ensure uninterrupted service in the face of emergencies, including natural disasters and system failures.  

When the unexpected occurs, Loomis is ready to support customers with the cash solutions they need.

While digital innovation drives progress, the enduring value of cash cannot be overlooked. By embracing a cash-centric approach and partnering with a reliable cash management provider like Loomis, businesses can build resilience and safeguard their operations for the future.

Learn more about Loomis’ business continuity plan here.