ECB Executive Board member Piero Cipollone has asserted the role of cash in euros as an indispensable part of the European monetary future. There are over 31 billion notes in circulation, worth €1.6 trillion, with an annual growth of 3%.
Cash in euros remains a central piece of the European monetary system. This was defended by Piero Cipollone, a member of the European Central Bank Executive Board, during a speech at the House of Europe in Brussels, as reported by ecb.europa.eu.
The data handled by the institution shows that the use of physical money has not collapsed despite the advance of electronic payments. Currently, there are more than 31 billion notes in circulation, with a value exceeding €1.6 trillion, and an annual growth of around 3%. This is in addition to over 150 billion coins.
Cipollone reminded that cash in euros hit the streets 25 years ago. On January 1, 2002, 308 million citizens adopted the single currency, and in just two months, over 7 billion notes and 36 billion coins replaced the 12 national currencies. With Bulgaria joining this year, the euro now encompasses 21 countries and more than 358 million people.
The central banker emphasized that cash serves functions that digital means do not fully cover. Among them, he mentioned financial inclusion, privacy protection, and freedom of choice. Furthermore, he pointed out that it is the only money that any citizen can hold directly, without intermediaries or devices.
“Cash provides something difficult to replace: a tangible anchor of stability and trust”
This function is complemented by the resilience of the payment system. Cipollone explained that cash remains available during power outages, internet failures, or cyberattacks, unlike electronic payments. For this reason, European public authorities are increasingly integrating it into their contingency plans.
The ECB maintains, in addition to logistical stocks to meet ordinary demand, a strategic contingency stock to respond to unexpected increases in demand or sudden supply interruptions, as occurred during the pandemic.
On the regulatory front, the European Parliament adopted its negotiating position on the Single Currency Package on July 9, which includes a proposed Regulation on the legal tender of notes and coins. If approved, it will strengthen the obligation to accept cash and recognize that convenient access to it is essential for its functioning.
The European Central Bank has exclusive competence to authorize the issuance of euro banknotes, according to Article 128 of the Treaty on the Functioning of the European Union. Together with the national central banks of the Eurosystem, it designs and issues banknotes and oversees the cash cycle.
The institution maintains a parallel investment strategy in cash and digital euros. Both formats aim for the same goal: for Europeans to be able to pay with public money, issued and backed by their central bank, in both physical and digital formats.
You may also like
