Cash now accounts for just a quarter of daily transactions, with consumers increasingly favoring electronic payments.

This decline is due to the proliferation of touch-and-go systems. About 80 per cent of point-of-sale transactions are now click-and-go, which Governor Lowe attributes to the introduction of new technology at payment terminals and “Australians’ desire to try something different”.

Mobile payments, including through wearable devices, have also been rapidly adopted by Australians.

However, Governor Lowe believes that electronic money will always have its place in the economy.

"I feel that in the future, cash will be the payment instrument that you use if there is a disaster or there is an electronic system failure," Governor Lowe said in a speech at the Australian Payments Network Summit.

"I think most of us who use payments all the time still carry cash in our wallets ... it would be nice if they didn't need to, if the whole system was electronic and ultimately that would be the more efficient solution for Australians."

But while cash will continue to exist, checks will disappear altogether.

"Over the past year, the number of checks written has decreased by another 19 percent and the value of checks written has decreased by more than 30 percent as the real estate industry continues to transition to electronic property settlements," Governor Lowe said.

"At some point it will be appropriate to end the vetting system, and that time is approaching. Before that happens, however, it's important that alternative payment methods are available for those who rely on checks.

"I can see the end of the check system, I can't see the end of the cash system."