Eurosystem Cash Strategy
Cash is an important part of your freedom to choose how to pay, and is essential for the financial inclusion of all groups in society. The cash strategy aims to ensure that euro cash remains widely available, accessible and accepted as both a means of payment and a store of value.
Euro banknotes and coins are legal tender in the euro area, and cash is the only form of public money to which everyone has direct access. The ECB and the national central banks of the euro area – who together make up the Eurosystem – share responsibility with the banking sector for ensuring that there are no disruptions to the supply of cash, and that businesses and people are able to pay with cash.
"Banknotes are part of our economy, our identity and our culture – and we at the ECB have an immense responsibility to ensure that people maintain their trust in them."
Christine Lagarde, President of the ECB
We are safeguarding the future of cash in several ways
We ensure the availability of cash
We make sure that euro banknotes and coins are available at all times. The national central banks offer cash services free of charge, and work to make the way money moves through the economy as cost efficient as possible. We also take into account needs of international markets, as 30% to 50% of euro banknotes are in circulation outside the euro area. If a digital euro is issued in the future, this would be a complement to cash.
We support access to cash services for everyone
We work to ensure that people and businesses are able to access their money, irrespective of their payment preferences and needs. To this end we support banks in providing adequate cash services, such as free cash withdrawals or withdrawals without excessive fees. We also support retailers in offering alternative cash services like cashback and limited cash withdrawals or deposits. We help banks in managing sudden increases in demand for banknotes, and ensure that cash can be used as an alternative means of payment when electronic payments are temporarily unavailable.
We make sure that cash is accepted everywhere
Most people in the euro area consider it important to be able to make retail payments in cash. Ensuring that cash is accepted everywhere is therefore essential, and is in keeping with the status of cash as legal tender. It gives consumers the freedom to choose how to pay, without disadvantaging those who do not have access to electronic payments. Shops and other private businesses cannot refuse cash payments unless both parties have previously agreed on another means of payment. Generally, public authorities and service providers must also accept cash, unless otherwise stipulated by law.
We develop innovative and secure euro banknotes
Euro banknotes are protected by the latest technologies to make them highly resistant to counterfeiting and easy to authenticate. We ensure the authenticity and high quality of euro banknotes in circulation, and set out strict standards for how banks and professional cash handlers check quality and authenticity. Meanwhile the Pericles Programme developed by the European Commission is encouraging the development of security features for coins, should the current denominations of euro coins be upgraded in the future. At the same time we are working to ensure that any new banknote designs are easily identifiable by the citizens of Europe.
We keep banknotes safe and sustainable
We make sure our banknotes are safe to produce and use: we research and test the potential impact of banknote production and circulation on public health and the environment. We also study the footprint of banknotes, to identify how to reduce the environmental impact using new products and processes. Euro banknotes and production process will thus be as sustainable, green and environment-friendly as possible.
The role of cash
The economy needs a certain quantity of cash available to be able to function properly. Cash is the most frequently used means of payment in the euro area, and the majority of everyday payments are made with banknotes and coins. Cash is also vital for the social inclusion of vulnerable population groups, including the elderly and those on low incomes.
Cash also offers other significant functions and benefits:
It ensures your freedom and autonomy. Banknotes and coins are the only form of money that people can keep without involving a third party. You don’t need access to equipment, the internet or electricity to pay with cash, meaning it can be used when the power is down or if you lose your card.
It’s legal tender. Payment recipients such as shops and restaurants cannot refuse cash, unless both they and the customer have agreed on another means of payment in advance. For more information, see the European Commission Recommendation of 22 March 2010 (2010/191/EU).
It ensures your privacy. Cash transactions respect our fundamental right to have our privacy, data and identity protected in financial matters.
It’s inclusive. Cash provides payment and savings options for people with limited or no access to digital money, making it crucial for the inclusion of socially vulnerable citizens such as the elderly or lower-income groups.
It helps you keep track of your expenses. Cash allows you to keep closer control of your spending, for example by preventing you from overspending.
It’s fast. Banknotes and coins settle a payment instantly.
It’s secure. Cash has proven to be secure against cybercrime, fraud and counterfeiting. And as it’s central bank money, it doesn’t entail financial risks for either the payer or the payee.
It’s a store of value. Cash is more than just a payment instrument. It allows people to hold money for saving purposes without default risk. It is useful for small person-to-person gifts and payments. For example, parents can entrust small amounts of cash to their children for small purchases, or a person can give a friend or acquaintance cash to purchase something on their behalf. Cash also contributes to children’s financial literacy.