The number of banknotes in circulation across the European Union is rising, despite the widespread use of smartphone payments, new data shows, with wildfires across parts of Europe fuelling demand for an emergency cash reserve.
Cash use grows despite contactless dominance
While cash plays a secondary role to contactless payments in many European cities, the amount in circulation is in fact increasing, said Philip Lane, chief economist at the European Central Bank (ECB), speaking at the MacGill Summer School conference in Ireland. The rise in cash use is linked to concerns over wars and the impact of cyberattacks on electronic and contactless payment systems, according to experts.
"The overall stock of banknotes continues to rise. In transactions, [the number of banknotes] is falling, but in terms of the stock, [it] is rising," Lane said.
Cyberattacks and emergency planning behind the shift
Last year, Marks & Spencer in Britain suffered a prolonged cyberattack that prevented the retail chain from accepting online orders for weeks. In 2025, EU residents were advised to stock sufficient food, water and essential supplies for 72 hours in case of an emergency, such as the devastating wildfires that hit France and Spain this summer, floods, storms, or potential cyberattacks and other hostile incidents.
Households were encouraged to keep an emergency kit including bottled water, a radio, canned food and, crucially, cash.
ECB data show the trend
ECB data, which has tracked the number of banknotes in circulation since 2002, shows the figure rose from around €1 billion in 2016 to €1.6 billion in June 2026. More than 31 million banknotes are in circulation, compared with 24 million shortly before the pandemic in 2019, with the €50 note the most popular denomination in 2025, followed by the €100 note.
European countries including Austria, Finland, Germany, Sweden and the Netherlands have already advised citizens to keep between €70 and €100 per household, an amount sufficient to cover basic needs for 72 hours in the event online and mobile payment systems go down.
Why cash use still matters
Olive McCarthy, a professor at University College Cork specialising in financial inclusion, said continued cash use is vital for society. "While the advice to keep cash for emergencies is sound, and serves as a reminder that we should all be prepared for when digital systems let us down, it is essential that cash is not seen merely as a backup measure. If we stop using it when there is no crisis, it may not be easy to use when a crisis comes," she said.
The ECB describes cash as a critical element of "national crisis preparedness," calling the decline in its use for everyday purchases, alongside a rise in the number of people holding banknotes, a "paradox." Lane also referred to the need for legislation to ensure ATM networks remain present on every high street across the EU.
"Some consumers prefer the privacy and convenience that cash offers. We are also seeing increasing discussion about the importance of cash in times of crisis," McCarthy said, noting that cash is "inclusive," as it is accessible to elderly and vulnerable citizens, including victims of domestic abuse who may depend on cash if a partner controls their spending. It is also a valuable tool for teaching children financial literacy and budgeting, she added.
Source: The Guardian
