'the costs are already built into the 10's of billions of profit the banks and the Govt are making out of the population.'
1st, cash distribution carries a cost of between 5% to 10% of a bank's overall costs and profits and costs are two diametral opposing things. Even a kid at primary school level knows that a profit equals income minus costs, that is, that a profit is a residual value and that as such not cost can be built into it. This is elementary.
2nd, the only justification for subsidizing the use of cash is that some old people plus people in remote areas will be disadvantaged or severely inconvenienced is cash as a means of payment is severely constrained, not that such use represents freedom of choice. Freedom that in lots of other cases comes under the banner of user pays.
3nd, bank profits come mostly from what is called the maturity transformation process. Borrowing short and lending long.
"What Is Maturity Transformation?
Maturity transformation is a financial process where banks or other financial institutions borrow funds with short-term maturities and subsequently lend those funds with long-term maturities. This practice allows banks to meet the liquidity needs of their customers while earning a profit from the net difference in interest rates between short-term borrowings and long-term loans."
