The government-run website Vie Publique has shared findings from a study conducted by the European Central Bank (ECB), the monetary authority of the European Union. The ECB holds the exclusive right to issue the euro, which is the common physical currency across the member states. In practical terms, the ECB manages the supply of notes and coins across the continent, printing or minting new ones as needed. The study, titled “Keep calm and carry cash: lessons on the unique role of physical currency across four crises“1, discusses the benefits of keeping some physical currency on hand to deal with emergencies.
The report delves into four distinct and recent crises, from Greece in 2008 to a major power outage in Spain, including the 2020 Covid pandemic and the Russian attack on Ukraine. In each instance, cash proved to be exceedingly useful, allowing normal activities to continue despite the ongoing crises. This was particularly evident during Spain’s power outage, as all digital payment methods require electricity. They also depend on internet connections, and as seen recently, a simple IT failure can significantly disrupt our daily lives.
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Beyond everyday transactions, holding cash can act as a form of insurance and protection against the impacts of a major crisis, as highlighted by the French government’s website. While we hope not to face a conflict like that in Ukraine, the ECB advises keeping a modest amount of cash at home just in case. This advice echoes that of several countries, including the Netherlands, Austria, and Finland, which recommend storing between 70 and 100 euros per person in a secure yet accessible location. This amount should be sufficient to meet the basic needs of a household for up to 72 hours.
It is also worth noting that in France, a physical payment card is almost essential for easily withdrawing cash from an ATM. Although your bank can provide cash over the counter, this may not be a viable option during a crisis.
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Ava Blake is passionate about social media platforms and how they influence modern tech culture. She reviews apps, trends, and the evolving digital lifestyle for Touch Reviews readers.