Even in cash-loving Germany, people are increasingly turning to credit cards or even smartphones for payments. While more than every second transaction still involves cash today, experts predict that by 2037, it may not even be every third transaction. This trend poses challenges, as the reduced use of cash makes it less profitable for banks to provide ATMs, and merchants may refuse cash more frequently.

However, the situation with cash is not as straightforward as regular goods, where supply and demand determine the price. Cash should be considered part of critical infrastructure.

Cash offers many advantages, especially in times of crisis. Its tangible nature provides reassurance to people, as various research results indicate. Cash in bank accounts is less tangible, both psychologically and sometimes literally, especially during technical issues or cyberattacks on banks. In such scenarios, it is crucial for cash to continue to exist.

Furthermore, coins and banknotes have several benefits. They are inclusive, protect privacy, and help people keep better track of their expenses. Therefore, it is right for the Bundesbank to ensure the continuous availability of cash in Germany. People should continue to have the freedom of choice in payment methods in the future.

Nevertheless, this freedom of choice also includes ensuring that digital payments remain viable. This involves providing attractive options for those who prefer to avoid cash. The digital Euro can serve as such an alternative, complementing both cash and digital payment services like PayPal.

The future acceptance of cash and the introduction of the digital Euro are not self-evident. The digital Euro must be designed not only to overcome formal hurdles for its introduction but also to provide tangible benefits that citizens can see. For example, by combining the advantages of cash, such as privacy protection, with the convenience of credit cards. The digital euro can only succeed in competition with other means of payment if it convinces the population.