Key facts
- The amount of cash in circulation in the EU is increasing.
- Anxieties over wars, cyber-attacks, and natural disasters are contributing factors.
- The total stock of banknotes has risen from €1bn in 2016 to €1.6bn in June 2026.
- Over 31 million notes are in circulation, up from 24 million before the pandemic.
- European countries recommend households keep €70-€100 for emergency preparedness.
- Cash is considered vital for financial inclusion, especially for vulnerable citizens.
The amount of physical currency in circulation across the European Union is on the rise, a trend attributed to growing public anxiety over geopolitical conflicts, the potential impact of cyber-attacks on digital payment systems, and extreme weather events like wildfires. Despite the increasing prevalence of smartphone payments and contactless transactions in urban areas, the overall stock of banknotes has seen a notable increase.
Philip Lane, chief economist at the European Central Bank (ECB), highlighted this phenomenon, noting that while cash usage in daily transactions may be declining, the total amount of currency held by the public is growing. This trend is seen as a response to perceived risks, including potential disruptions to online and mobile payment infrastructure. Data from the ECB indicates a significant rise in banknote circulation, from approximately €1 billion in 2016 to €1.6 billion by June 2026, with over 31 million notes now in circulation compared to 24 million just before the COVID-19 pandemic.
Several European nations, including Austria, Finland, Germany, Sweden, and the Netherlands, have begun advising their citizens to keep a small emergency fund of cash, typically between €70 and €100 per household, to cover essential expenses for up to 72 hours in the event of digital system failures. This advice is part of broader crisis preparedness measures, which have also included recommendations for stockpiling food and water.
Experts emphasize that while maintaining cash reserves for emergencies is prudent, it is crucial that cash is not solely relegated to a backup role. Professor Olive McCarthy of University College Cork stressed that continued everyday use of cash is vital for its accessibility and functionality when a crisis does arise. The ECB itself recognizes cash as a critical component of national crisis preparedness and is exploring legislative measures to ensure the continued availability of cash machines. McCarthy also pointed out the inclusive nature of cash, benefiting elderly and vulnerable populations, including victims of domestic abuse, and serving as a tool for financial literacy among children.