The European Central Bank (ECB) has confirmed that physical cash will continue to play an essential role alongside the growing use of digital payments in Europe. Despite the rapid increase in electronic payment methods, the ECB reassures the public that cash is not becoming obsolete and will remain a critical part of the monetary system.
The ECB highlighted that while digital payment methods are expanding driven by convenience and technological advances there are strong reasons to preserve cash. Cash offers anonymity, immediate finality, and universal accessibility, especially for those without access to digital banking or electronic devices. These characteristics ensure cash’s continued relevance for all members of society.
Cash is indispensable as a way to pay and to store value, says Executive Board member Piero Cipollone.
We are modernising banknotes, ensuring they remain accessible and widely accepted.
A digital euro will complement this by bringing the benefits of cash to digital payments.
— European Central Bank (@ecb) August 4, 2025
In recent years, digital transactions have surged, with contactless cards and mobile payments becoming more common. However, the ECB’s latest data shows a significant portion of transactions across the Eurozone still involve cash, especially for small-value payments and in rural or older demographics. The central bank emphasised that the coexistence of cash and digital payments supports financial inclusion by catering to diverse preferences and needs.
The ECB also remains committed to providing a digital euro to supplement cash, aiming to offer a safe, efficient, and accessible digital currency option. Yet, the digital euro is designed to complement rather than replace physical money, reinforcing the importance of maintaining cash as a public good.
Additionally, the bank considers cash crucial for resilience during technological failures or cyberattacks, where digital systems may be compromised. The tangible nature of cash provides a secure backup that protects users in emergencies.
The ECB’s stance is clear, even with the rise of digital payments, cash will maintain its vital role in the European economy for the foreseeable future. The bank underscores its support for a balanced payment landscape that upholds privacy, accessibility, and security for all citizens.
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