In the Land of Panic, Cash Is KingTheodore Iacobuzio |
It turns out that under the pressure of events, the economy in Cyprus is becoming cash-driven. Merchants are making purchases in cash, because their suppliers are demanding it, and in turn demanding cash of their customers. Because they don’t know what’s going to happen tomorrow. Literally.
The headline on the print version of this story (subscription required), is “As Cypriots’ Confidence Wavers, Cash Is King”.
Cyprus is a Greek-speaking country, and all this brings to mind Aesop’s fable of the crane as king of the frogs: cash as monarch doesn’t sound very soothing.
And, as with any fable, there’s a moral: electronic payments mean everybody in the ecosystem has faith in everybody else. Cash is a last resort. Or at least that’s the way things are playing out in Cyprus.
Topics: Payments Strategy