Europe

Demand for foreign and domestic cash spiked in Russia after Western nations announced financial sanctions following the invasion of Ukraine. Massive cash withdrawals and runs on savings could trigger a banking panic and cause a financial meltdown.

Ukrainians’ demand for cash has spiked during the Russian invasion. The National Bank of Ukraine moved to secure the cash supply and encouraged civilians to make cashless payments.

Despite the Covid-19 pandemic, most Spanish consumers remain sceptical of digital payments. Several have faced problems paying with cash. Bank desertification in less populated areas has worsened during the pandemic.

Cash remains the most widely used and accepted payment instrument in Spain despite the Covid-19 pandemic. Younger, older, and rural consumers favour cash in their daily payments.

Payments service provider Paysafe has announced the acquisition of leading CashTech company Viafintech. Meanwhile, former Viafintech shareholder Gory invests in shared bank branch startup, OneBanks. The transactions demonstrate growing investor interest in CashTech.

An ECB study belatedly confirms that cash is safe to use despite the SARS-CoV-2 Virus. The SARS-CoV-2 virus lasts longer on stainless steel than on banknotes and euro coins. PVC and stainless steel are more likely to transfer the virus than cash.

Cash in circulation increased in the euro area during the first year of the Covid-19 pandemic. An increase in the precautionary demand for cash more than compensated the decline in its transactional demand. Fears over the role of cash in Covid-19 transmission weighed down on its use in payments.

Despite widespread opposition, the Spanish Congress has reduced the limit on cash payments from €2,500 to €1,000.

E.U. Financial Services Commissioner Mairead McGuiness has announced measures against money laundering, including limits to cash payments above €10,000. In 2018, the European Commission ruled against such limitations.

Santander and Prosegur Cash launch an in-store digital cash management solution in Spain that pays cash directly into bank accounts and saves companies time with cash management.

The regional government of the Valencian Community in Spain has increased its subsidies to install rural ATMs. As ATM numbers decline in Western Europe, several countries see the public sector step in to fund the cash infrastructure.

The European Payments Council (EPC) Cash Efficiency Working Group (CEWG) has published some observations on trends and drivers for cash usage and related challenges for the cash cycle. The CEWG is responsible for formulating proposals for increasing the efficiency of cash handling and making recommendations for best practices to be shared within the entire SEPA community.