Cash is about to lose its ‘throne’ in the eurozone

The Eurozone is the most cash-loving place in the group of developed economies, despite the rise of electronic payments globally. However, the semi-annual Study of Consumer Attitudes towards Payments in the Euro Area (SPACE) shows that cash currently accounts for just over half of transactions in the euro area, at 52%.

This figure is down from 59% in 2022. Eight years ago, the proportion of cash in payments in the eurozone reached 79%.

In contrast, the card payment rate increased from 34% to 39% in the past 2 years. Mobile payments also increased by 6%.

The number of respondents who said they owned crypto assets in the eurozone also doubled compared to 2022, to 9% this year. The countries with the highest cryptocurrency ownership rates in this region are Slovenia and Greece. However, the level of cryptocurrency acceptance here is still low compared to the world.

The above report reinforces proposals within the ECB that the bloc needs to introduce a digital euro. This will ensure people have access to risk-free payments, even in a cashless world.

“By supporting both cash and digital euros, we want to ensure people always choose to pay in euros, now or in the future,” said ECB board of governors member Piero Cipollone. .

If calculated by transaction value, cards have long surpassed cash in payments, at a rate of 45%. Meanwhile, this figure for cash is 39%.

In the European Union (EU), electronic payments are most popular in Sweden. However, officials in this country are still concerned about what could happen if electronic payment channels are interrupted. In a report called “If there is a crisis or war”, the country recommends that people should still keep enough cash to last a week.

The Swedish Central Bank also called on the government to force businesses selling essential products such as prescription drugs, fuel, and food to accept cash payments. These companies must also strengthen their financial cybersecurity policies.

When most banks no longer provided cash-related services at their branches, the Swedish Central Bank had to open many storage and deposit locations to ensure people had access to cash online. the whole country.