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Financial Inclusion in Spain: Cash as a Safe and Sustainable Solution

Categories : Cash is a contingency and fall-back solution, Cash is a symbol of national sovereignty, Cash is the first step of financial inclusion
April 9, 2025
Tags : Financial inclusion, Regulators, Resilience, Spain
On March 17th, the Spanish Congress of Deputies hosted the conference "Financial Inclusion in Spain: Cash as a Safe and Sustainable Solution," organized by the Denaria Platform. The event brought together experts and institutional representatives to discuss regulatory restrictions affecting cash use and their implications for the economy and national security.
Concha Jimenez

Former Director General of Cash and Branches, Banco de España

Member of the CashEssentials Steering Committee

Financial Inclusion and Economic Resilience

The workshop featured prominent figures from social, economic, and political spheres. At the panel on cash accessibility, experts from various social associations emphasized the importance of cash for personal autonomy and financial inclusion.

The legislative panel convened parliamentary representatives from different parties to discuss the need to align current regulations with European guidelines.

In the national security panel, specialists in critical infrastructure protection highlighted cash as a key element in financial resilience and protection against potential digital system failures.

Challenges and Contradictions

Javier Rupérez, President of Denaria, criticized the legislative contradictions that limit cash use in Spain, despite the General Law for the Defense of Consumers and Users mandating its acceptance. He pointed out that the cash payment limit of 1,000 euros is significantly lower than the 10,000 euros allowed by the European Parliament’s Money Laundering Directive, approved in June 2024. Additionally, restrictions on rent payments and tax deductions penalize cash use, placing Spain at a disadvantage compared to other EU countries with no such limits.

Rupérez noted that despite existing legislation requiring the acceptance of cash payments, obstacles persist, especially from public institutions, as evidenced by complaints received through Denaria’s platform.

Spanish Legislation on Cash Payments

The Spanish legislation limiting cash payments above €1,000 was introduced as part of efforts to combat money laundering and tax evasion. This restriction aims to increase transparency in financial transactions by encouraging the use of traceable payment methods. However, critics argue that this limit disproportionately affects individuals and businesses that rely on cash for legitimate reasons, such as those without access to digital banking services or those who prefer cash for privacy and security. The discrepancy between Spain’s limit and the higher threshold set by the European Union has sparked debate over the effectiveness and fairness of the current regulation.

Cash and Financial Security

A central topic at the conference was the role of cash in financial security. With increasing exposure to cyberattacks, exclusive reliance on digital payments poses risks. Experiences from countries like Sweden, Norway, and Finland demonstrate the importance of maintaining a cash infrastructure to ensure economic continuity during technological failures or crises.

“Reliance on digital payments makes us vulnerable,” Rupérez stressed. “A system failure can cripple the economy, while cash is immune to cyberattacks and ensures citizens’ financial autonomy.” Recent studies highlight Spain as one of the countries most exposed to financial cyberattacks.

Denaria’s Commitment to Cash

Denaria reiterated its commitment to defending cash as an essential service. The organization urges the Spanish Government and European institutions to adopt measures guaranteeing citizens’ free choice and avoiding unjustified restrictions on cash use. As the economic and technological landscape evolves, cash remains critical for financial stability and social inclusion.

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