Bank account set to receive refunds from deposit system shortly
In Latvia, a deposit scheme has proven to be highly effective in increasing the collection and recycling of plastic packaging. As a result, 86.4% of plastic packaging is now returned and recycled, a significant improvement from the pre-scheme rate of 46%.
However, when it comes to the exchange of cash for deposit vouchers, the situation is less clear. Only a few shops in Latvia issue deposit vouchers in exchange for cash, and this choice is made by the shop, not influenced by the operator.
Miks Stūrītis, head of the Deposit System Operator (DIO), has recently announced plans to introduce a new feature this year that allows deposit fees to be transferred to a user's account, potentially making the process more convenient for users. This new feature could be piloted with one trader in early summer, and if it works well, it could be introduced on a much larger scale in the autumn.
It's important to note that there is no specific information about a planned change for deposit vouchers specifically in Latvia or a targeted introduction for smart device users. While the European Central Bank is working on the digital euro, this system includes functionalities such as depositing cash digitally, it does not mention deposit vouchers or Latvia specifically.
Despite the lack of a legal provision allowing cash exchanges for deposit vouchers in Latvia, Miks Stūrītis has repeatedly advocated for such a provision. As of now, cash cannot be used to purchase deposit vouchers.
Last year, a total of 435 million packaging units were accepted in Latvia's deposit scheme. If the new feature is successful, users will have the option to make this payment to their account instead of receiving a deposit voucher.
The DIO in Latvia has not yet made a statement about the possibility of allowing cash exchanges for deposit vouchers. However, if the new feature is well-received, it could mark a significant step forward in the convenience and accessibility of Latvia's deposit scheme.
- The Deposit System Operator (DIO) in Latvia is considering a new feature this year that could make the exchange of deposit vouchers more convenient, as users may have the option to transfer deposit fees to their account instead of receiving a voucher.
- Despite the lack of a legal provision allowing cash exchanges for deposit vouchers in Latvia, there is ongoing discussion about its potential benefits, particularly in the context of integrating technology within the financial sector, such as in digital currency solutions like the European Central Bank's digital euro.
