Polish Finance Minister Andrzej Domanski
The impetus was the recommendations of the Estonian central bank, which advised citizens to keep at home a stock of cash sufficient for daily spending for a week. The reason is the growing risks associated with possible disruptions in payment systems, cyberattacks and power outages.
Opinions in Poland
The call for cash hoarding comes at a time when cashless payments are enjoying record popularity. It is estimated that up to 70-80% of Poles regularly use cards and mobile payments.
At the same time, the majority of Warsaw residents answer in the affirmative when asked about the habit of setting aside cash for a few days for everyday spending.
They fear cyberattacks and blackouts, as well as international tensions and a new pandemic, notes Euronews.
The digital euro as one solution
One of the reasons for the Estonian central bank’s recommendations is Europe’s heavy reliance on American payment operators Visa and Mastercard.
It is estimated that up to two-thirds of card transactions in the eurozone are made through American systems. Experts note that in extreme scenarios, access to these systems may be restricted, which could lead to serious disruptions in the functioning of payments in Europe.
Therefore, the EU is working to create its own payment infrastructure and digital euro. Nevertheless, citizens’ awareness of the upcoming changes is still limited.
At the same time, according to the European Central Bank, if the relevant EU regulations are adopted later this year, the first issue of digital euros could take place in 2029.
Cash under control: restrictions and changes in the EU
New EU rules on cash withdrawals from ATMs impose additional restrictions on the circulation of large sums.
From 2027, EU member states will have to set limits on cash transactions. Withdrawals over €10,000 (or the equivalent in local currency) may be subject to additional requirements, including the need to show ID and, in some cases, approval from the relevant institutions.
Financial penalties of up to 150 thousand euros are envisaged in case of violation of the new rules.
These rules are generating debate. On the one hand, they are expected to enhance financial security, but on the other hand, they may restrict the free use of cash for both everyday expenses and large transactions.
The future of finance: a hybrid model
The debate about cash and the digital euro shows that money is not only a means of payment, but also an important element of state security and geopolitics.
On the one hand, Europe seeks to regain greater control over the financial system and become independent from the global giants. On the other hand, it reminds citizens of the importance of the simplest, tried and tested solutions.
