Satisfying demand for cash requires a sophisticated physical infrastructure involving central banks and private intermediaries in the distribution of banknotes and coins to both citizens and businesses. In addition, cash is used for savings and liquidity, especially in times of crisis or uncertainty. On the basis of the ECB’s most recent data, despite the gradual decline in cash transactions, cash is the most popular payment instrument among euro area citizens for day-to-day transactions at the point of sale or person-to-person payments.
The Eurosystem is committed to the principle that every individual in the euro area should be able to decide how to make day-to-day payments, regardless of their individual payment preference, geographical location or technological savviness.
Published as part of the ECB Economic Bulletin, Issue 5/2022. Guaranteeing freedom of payment choice: access to cash in the euro area
