Shops and service companies will not be forced by law to accept payments in cash, according to a government minister.
Emma Reynolds, the new economic secretary to the Treasury made the comment to MPs during a Treasury committee meeting.
It comes despite concerns that large numbers of vulnerable people still rely on the use of physical money as opposed to card or mobile phone payments.
But Ms Reynolds reassured the committee that the UK was "not anywhere near" becoming a fully cashless society.
The BBC reports Ms Reynolds told MPs the government was concentrating on making sure everyone had access to cash through banking hubs and boosting people's digital skills.
While countries including Australia are planning new rules to ensure essential services continue to accept cash, the committee heard there was no such policy on the horizon in the UK.
Ms Reynolds said: "We have no plans to regulate businesses - big or small - to compel them to accept cash."