Anxiety over war, wildfires and cyber-attacks leads to growth in cash stocks in EU
Value of banknotes in circulation rises from €1bn in 2016 to €1.6bn in 2026 as people advised to keep stash of cash The number of banknotes in circulation in the EU is increasing despite widespread smartphone payments, new data shows, with wildfires ripping through parts of Europe fuelling demand for an emergency stash of cash. While cash plays second fiddle to contactless payments in many cities…
Cash in circulation in the European Union has been on the rise, despite the widespread use of digital payment methods. Philip Lane, the chief economist at the European Central Bank (ECB), explained this trend during a conference in Ireland. Lane noted that while cash transactions are decreasing, the overall stock of banknotes is increasing.
Experts have suggested that the growth can be attributed to concerns over potential conflicts, cyber-attacks on digital payment systems, and natural disasters such as wildfires, floods, and storms.
In 2026, the value of banknotes in circulation in the EU had increased from €1 billion in 2016 to €1.6 billion. There were over 31 million notes in circulation, compared to just 24 million before the pandemic in 2019. The €50 note was the most popular in 2025, followed by the €100 note.
Several European countries, including Austria, Finland, Germany, Sweden, and the Netherlands, have advised citizens to keep a cash stash of €70 to €100 per household, enough to cover essential expenses for 72 hours in case of emergencies. Olive McCarthy, a professor at University College Cork, emphasized the importance of maintaining a cash reserve for emergencies. She pointed out that while cash is often seen as a backup option, it is essential for society and should not be disregarded when digital systems fail.
The ECB stresses the importance of cash in national crisis preparedness, acknowledging that its use for everyday purchases is declining due to the rise in contactless payments. Lane pointed out the paradox of cash becoming more popular as an emergency reserve while its use in daily transactions decreases. He also highlighted the need for legislation to ensure the continued existence of cash machines on high streets across the EU.
McCarthy noted that cash offers privacy, convenience, and accessibility to vulnerable groups, including the elderly, those with disabilities, and victims of domestic abuse who may rely on cash if their partner controls their finances. Cash also plays a crucial role in teaching financial literacy and budgeting to children.
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