Cash Remains Vital in EU Despite Digital Euro Push

Recent developments indicate that despite the rapid rise of digital payment systems, cash remains an integral part of daily economic life for European Union citizens. A report prepared by ECB officials, including Banknote Issuance Specialist Alejandro Zamora Perez and Trainee Economist Rebecca Clipal, highlights that cash is far from obsolete and continues to be widely used across all age groups. The analysis draws from the latest three editions of the ECB’s Survey of Payment Attitudes in the Euro Area (SPACE), conducted in 2019, 2022, and 2024 [1]. Contrary to earlier predictions of a cashless future, the study reveals that cash usage has remained resilient, with younger individuals using it for precautionary reasons and older groups relying on it more frequently for transactions [1].

The ECB report underscores what it calls the “rarely anticipated persistence” of cash, especially in the post-pandemic environment where uncertainty has driven individuals to hold physical currency for storing value [1]. The perceived importance of cash as a payment method has also grown since 2019, with a wide majority of EU citizens across all age groups affirming its relevance in 2024 [1]. These findings challenge the notion that a sharp decline in cash usage is inevitable in the near future, adding to the skepticism around the feasibility of a fully cashless society.

As the ECB moves forward with the development of a digital euro, it has been clear from multiple statements that the initiative is not intended to phase out cash. In fact, ECB Executive Board member Piero Cipollone has reiterated the institution’s commitment to maintaining the availability and acceptance of physical currency. He emphasized that the digital euro will serve as a “digital expression of cash” rather than a replacement [1]. This approach reflects a broader strategy to preserve financial stability and reinforce public trust in the euro, particularly in the face of growing global competition from private stablecoins, many of which are backed by the U.S. dollar [2].

The ECB is also keenly aware of the challenges in transitioning to digital alternatives. Recent studies suggest that many Europeans remain hesitant to adopt digital currencies. For instance, when presented with a hypothetical allocation of €10,000, a significant portion of respondents preferred to hold traditional assets rather than digital ones [4]. This indicates a lack of readiness or trust in the digital euro, despite its potential to enhance payment efficiency and security. The ECB continues to explore regulatory frameworks, such as the Markets in Crypto-Assets (MiCA), to create a supportive environment for digital finance [4].

While the ECB has not yet finalized the launch of the digital euro, it is conducting extensive testing and public consultations to ensure the initiative meets user needs and supports broader financial stability goals [6]. ECB adviser Jürgen Schaaf has also advocated for international cooperation on stablecoin regulation, emphasizing the need for a coordinated approach to maintain the euro’s competitive position in global digital finance [5]. At the same time, euro-pegged stablecoins have seen limited adoption so far, with their role in the EU described as “marginal” [5].

The ECB’s approach to digital transformation has been characterized by a balance between innovation and tradition. While it is committed to exploring the potential of digital currency, it has not abandoned the foundational role of cash. The institution continues to distribute €1.6 trillion in euro banknotes and coins, which remain a reliable and accessible medium of exchange [2]. This dual-track strategy reflects the ECB’s recognition that digital and physical forms of money can coexist, each serving distinct purposes in the evolving financial landscape.

Moving forward, the ECB will continue to monitor public sentiment, technological advancements, and global regulatory developments to shape the future of the digital euro. For now, the eurozone remains steadfast in its commitment to preserving the relevance and utility of cash, ensuring that it remains a core component of the monetary system alongside emerging digital solutions.

Source:

[1] [AHit to Digitalization: Cash Is Still Very Much Alive and Relevant for EU Citizens](https://api.news.bitcoin.com/wp-json/bcn/v1/post?slug=a-hit-to-digitalization-cash-is-still-very-much-alive-and-relevant-for-eu-citizens)

[2] [ECB Affirms Cash Stays, Digital Euro Takes Shape](https://www.ainvest.com/news/ecb-affirms-cash-stays-digital-euro-takes-shape-2508/)

[4] [Digital Euro Will Complement, Not Replace Cash, ECB Executive](https://www.cryptotimes.io/2025/08/04/digital-euro-will-complement-not-replace-cash-ecb-executive/)

[5] [ECB Stresses Cash Role, Digital Euro Push](https://www.ainvest.com/news/ecb-stresses-cash-role-digital-euro-push-2508/)

[6] [ECB Reaffirms Commitment to Public Money Amid Digital Currency Growth](https://www.binance.com/en/square/post/08-04-2025-ecb-reaffirms-commitment-to-public-money-amid-digital-currency-growth-27858235717002)