A few days ago, European Commission President Ursula von der Leyen urged European citizens to prepare for potential disasters such as fires, floods, pandemics, wars, or cyberattacks. Among her recommendations to strengthen social resilience was having an “emergency kit” that included, among other things, cash—and it’s no coincidence that cashMoney in physical form such as banknotes and coins. More made that list.
In fact, cash is a silent yet essential pillar of our daily lives and our resilience as a society. Its strength lies in its reliability—it always works, even in the most adverse situations, and doesn’t depend on digital networks, electricity, or devices. It’s universally accepted and, compared to other paymentA transfer of funds which discharges an obligation on the part of a payer vis-à-vis a payee. More methods, comes at a lower cost.
In many countries, including segments of our own society, we take for granted that cash will always be available. It’s so embedded in our daily routines that its significance often goes unnoticed. However, in places where its use isn’t guaranteed, its true value becomes crystal clear for several reasons.
Cash is the cheapest payment methodSee Payment instrument. More. Its efficiency has been the subject of numerous studies. A recent report by the Institute for Monetary and Financial Stability proves that, from a broad societal perspective, cash remains the most efficient form of payment. Despite this, biased reports circulate in Brussels claiming that cash is more expensive—adding arbitrary administrative costs amounting to 50%, based on vague estimates.
Cash also has a lower environmental impact. Comparisons show that cotton-based banknotes leave a significantly smaller ecological footprint than digital methods like plastic cards or mobile payments, which rely on energy-intensive infrastructure, electronics, and data networks. Your wallet can also help protect the planet.
Beyond the technicalities, cash plays a crucial role in unifying society—a fact that should not be overlooked. Take Europe as an example: few things make citizens feel as united as using euros and physically connecting with the European project. The imagery on euroThe name of the European single currency adopted by the European Council at the meeting held in Madrid on 15-16 December 1995. See ECU. More banknotes—doors, windows, bridges—symbolizes openness, cooperation, and communication among European nations and with the rest of the world. These shared values form the backbone of the European Union.
In an increasingly digital society, the right to privacy takes on a new dimension—and cash stands out among payment methods. Paying in cash means keeping control of your own data. It’s like closing the door to your home—no cookies, no data tracking. Perhaps until now, data tracking didn’t seem problematic. But with the rise of artificial intelligence, individual data can now be quickly and accurately transformed into behavioral patterns for commercial, political, or geopolitical use.
Cash is also the most inclusive payment method. It doesn’t require technological know-how, internet access, or a device. It’s universal—age, income, or physical ability doesn’t matter. Cash is for everyone, no strings attached. In a fair and inclusive society, that should be unquestionable.
Cash use is also linked to more responsible financial habits. A study by the universities of Adelaide and Melbourne in Australia shows that people spend about 15% more when using cards or digital payments, especially on impulsive purchases they later regret. Alarmingly, over two trillion euros in card debt exist at higher interest rates than other credit options. Teenagers who grow up using cash are shown to be more financially responsible in adulthood than those raised on digital payments. Cash teaches discipline.
From a security perspective, cash has advantages. Contrary to popular belief, financial fraud is more prevalent in digital environments than in cash transactions, according to a study by Bangor University in Wales. This highlights cash as the safest method.
Spain illustrates this paradox. According to a recent study by Kenneth Rogoff, Spain has the strictest cash payment limit in Europe—1,000 euros, the lowest ceiling on the continent. The European Central Bank itself has recommended raising this limit to 10,000 euros, as it is in other EU countries, to mitigate negative economic impacts, especially on lower-income households.
Despite the restriction, Spain’s shadow economy has grown—from 18% to 24%, making it the second-highest increase in Europe. This reveals that the underground economy often uses digital payments, instant platforms, and even cryptocurrencies just as much—if not more—than cash.
There are additional benefits cash brings to society. The cash industry creates local jobs, contributes taxes in the countries where it operates, and helps redistribute wealth more effectively, thanks to its decentralized nature.
Despite all of this, cash is under threat—its use is being discouraged, its accessibility is not guaranteed during emergencies, and its economic viability is under pressure from new regulations. Yes, digital payment options are more convenient. But it’s hard to justify restrictions on cash, especially now as Bizum (a Spanish instant payment system) is expanding.
We’ll keep seeing ads telling us how easy it is to keep spending at high interest rates. Politicians will be encouraged to pour public funds into flashy digital projects without considering the downsides or the importance of maintaining balance with other payment systems.
That’s why I urge policymakers to resist the mantra that “digital is always good, pretty, and cheap.” Let’s analyze and reflect on the consequences of different payment models.
Meanwhile, we’re being sold the narrative that digital is modern, easy, and cool. But not everything convenient is what’s best for society. So, I encourage you to think critically and reflect. You’re not weird for using cash. You’re not suspicious. You’re a free, informed person exercising your right to choose. And that’s a right we cannot afford to lose.