The European Central Bank is inviting citizens to consider cash as an essential tool for dealing with periods of economic instability or emergencies. In the economic bulletin entitled Keep Calm and Carry Cashthe economists Francesca Faella and Alejandro Zamora-Pérez have highlighted how physical money represents a safe payment and a psychological stability factor, capable of guaranteeing autonomy in the most delicate moments. But why did this recommendation come? Let’s see it together.
The demand for banknotes is growing, especially during the crises
Despite the growing digitization of payments, the circulation of euro banknotes has shown a constant increase in the last twenty years. The ECB stresses that, during the economic crises or emergency events, the public tends to find cash in major quantities, confirming the unique importance of physical money even in a highly technological context.
The ECB analysis takes into consideration events such as the 2008 financial crisis, the Greek debt crisis 2014-2015, the Covid-19 pandemic and the invasion of Ukraine in 2022. In all these cases, the cash supply has increased quickly, demonstrating how people consider it a reliable tool to manage the unpredictable, both local and global level.
How much cash has available
The authorities of different European countries suggest maintaining a reserve of cash sufficient to cover the essential needs for about 72 hours. Indicatively, the recommended figure varies between 70 and 100 euros for each member of the family, a sufficient amount to face the most common emergencies, from the interruptions of electricity to the temporary blocks of digital systems.
Cash as daily security
The ECB recommendation does not invite you to hide money at home, but to have an immediately usable liquidity, useful in crisis situations. The cash remains a symbol of safety and stability, while the digital euro represents the natural evolution of the currency, capable of ensuring universal access and continuity in transactions in all circumstances.
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