Quantity banknote in circulation in to the European Union has grown significantly over the last decade. According to data from the European Central Bank, the value of banknotes in circulation increased from around 1 trillion euros in 2016 to around 1,6 trillion euros in June 2026.
At the same time, the role of cash in everyday transactions is declining. More and more citizens use cards, mobile phones and other forms of electronic payment.
It was this paradox that attracted the attention of the European Central Bank's (ECB) chief economist Philip Lane, who pointed out at the MacGill Summer School conference in Ireland that the number of banknotes people are holding is increasing even as cash is used less and less for everyday purchases.
According to the Guardian, the reason for this could be the growing concern about emergency situations in which digital systems can fail.
Wars, fires and hacker attacks
In recent years, European countries have increasingly taken into account the possibility of disruption of the functioning of the digital infrastructure.
Wars and security crises, large forest fires, floods and storms, but also cyber-attacks can lead to problems with electricity supply, communications or payment systems.
In such circumstances, cards and mobile banking applications can become temporarily unusable, while cash works without the need for internet, electricity or access to a bank account.
Major cyber-incidents have drawn additional attention to this risk. The Guardian reminds that in 2025, the British shopping chain "Marks & Spencer" was hit by a long-term cyber-attack, due to which the company had serious problems with business and online orders for weeks.
How much cash should I have?
Some European countries have already given concrete recommendations to citizens. Austria, Finland, Germany, Sweden and the Netherlands are among the countries that have advised households to have a certain amount of cash for emergencies. Recommendations range from 70 to 100 euros per household, that is, the amount that should be sufficient for basic needs for approximately 72 hours if electronic payment is not available.
Such advice is part of a broader European approach to preparing the population for emergency situations. Citizens are recommended to have basic supplies of water, food, medicine and other necessities, as well as a battery or transistor radio and a certain amount of cash.
The 50 euro banknote is the most popular
ECB data also show which denominations citizens use the most. During 2025, the most popular was the 50-euro banknote, followed by the 100-euro banknote. According to data from the central bank, there are more than 31 billion banknotes in circulation, while immediately before the pandemic in 2019 there were about 24 billion.
This shows that the reduced use of cash in stores does not necessarily mean a reduction in the amount of money held by citizens in physical form.
Experts, however, warn that it would be wrong to view cash exclusively as a backup option for emergency situations. Olive McCarthy, a professor of financial inclusion at the University of Cork, warned that it was important for cash to remain part of the everyday financial system.
If its use is completely stopped, she warns, it may happen that the infrastructure needed for the use of cash weakens exactly when citizens need it the most.
Cash has other advantages. It allows for greater privacy when making payments, is accessible to people who are not fully involved in the digital financial system, and can be especially important for elderly and vulnerable citizens.
McCarthy also pointed to the fact that cash can play an important role in protecting victims of domestic violence who may be financially controlled by their partners.
Only in August: Save three thousand dinars on the annual subscription to the digital edition of "Vremena"! Take advantage of the discount here and support independent journalism.
