The council has argued that these retailers discriminate against unbanked members of society.

The council has voted to pass a bill requiring physical outlets in New York City to accept US bills and coils or face fines of up to $1000 for a first violation of the rules and $1500 for secondary incidents.

An increasingly cashless society in the city has led some businesses to ban cash purchases, which is expensive to handle outright.

New York is following the example of Philadelphia and San Francisco in this move, while Washington and Chicago are making moves to implement similar legislation, Finextra reports.

Ritchie Torres, New York City Council member, said: “No longer in NYC will brick-and-mortar businesses have the right to refuse cash and effectively discriminate against customers who lack access to credit and debit.

“The City of New York cannot allow the digital economy to leave behind the 25% of New Yorkers who are chronically unbanked and underbanked. The marketplace of the future must accommodate the needs of vulnerable New Yorkers.”