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No power, no phone, …. no panic, Cash is king!

Categories : Cash and Crises, Cash is a contingency and fall-back solution
May 5, 2025
Tags : Blackout, Crisis, Portugal, Spain
On April 28, 2025, Spain Portugal and parts of France experienced a widespread electrical outage that plunged about 55 million people into a pre-electric age. The blackout had significant impacts on digital payments and cash demand, highlighting the vulnerabilities of modern payment systems during infrastructure failures.
Concha Jimenez

Former Director General of Cash and Branches, Banco de España

Member of the CashEssentials Steering Committee

Spain was hit by a major power outage on Monday, April 28th  which caused major disruptions across the country forcing businesses to shut down along with trains, subways and even some airline flights.

The reaction across Spain ranged from frantic stockpiling to confused bewilderment to calmly hunkering down and making do with old-fashioned electricity-free ways of living, for example battery-powered radios that became the only source of external communication in the absence of mobile data and the Internet.

For many, it was the moment they realised just how reliant we are on digital payment systems. The blackout severely impacted most electronic payment systems. Without power, electronic payment terminals in places such as shops, restaurants, petrol stations and public services stopped working. Many ATMs were also down, either due to the lack of internet connection or simply because their backup batteries ran out.

A significant number of businesses in Spain reverted to cash-only transactions, creating long queues and purchase cancellations. For example, in Madrid-Barajas Airport, taxi drivers couldn’t accept card payments, forcing passengers without cash to find alternative transport options.

As a result, basic goods like bread, water and medicine became temporarily inaccessible for many people. So basically, we all realised how vulnerable we are when even buying some milk becomes impossible.

The recent electricity blackout that hit Spain on April 28, 2025 has highlighted an undeniable truth: in the digital age, cash remains a fundamental pillar of our society. As power and digital grids failed, cash emerged as the only way for citizens to access essential goods.

We must learn from the experience and conclude that a cashless future is in doubt.

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