There European Central Bank has recommended citizens to “equip themselves with a reserve of cash which allows you to carry out the Essential purchases for 72 hours”, Equivalent to 70-100 euros by member of the family: in his report “Keep Calm & Carry Cash“, The ECB has in fact analyzed the impact of different national and international crises on the request for cash by citizens. But because the cash It is so important during these crisis situations?
The reasons are different, but the core of the question is always the same: the banknotes they are a tangible (and therefore more controllable), they are always accepted and they don’t need to Internet connection to work. In a sense, the cash could be considered as a “good refuge”: for society it is one low cost protection against any crises or instability. If we talk about Eurothe cash even allows us to pay goods and services outside our country.
In short, the ECB has highlighted the essential role of cash to manage periods of crisis (such as the Covid-19 pandemic, the Russian invasion of Ukraine or the blackout of the Iberian peninsula) taking as an example what already happens in Netherlands, Austria and Finland and suggesting to European citizens to keep the money necessary to deal with their own at home needs for several days.
The fundamental role of cash during crisis situations
The report published by the European Central Bank highlighted how the cash application undergoes praised when the stability (economic, political or social) of a country comes threateningregardless of the nature of the crisis, its geographical amplitude or the degree of digitization. All this is clearly visible even in the graph below: in moments of criticality, the cash is considered a well resilient And, therefore, his question increases.
But the ECB also refers to recent examples: in the case of Covid-19 pandemic, for example, the cash request has increased for “precautionary” reasonslinked to the uncertainty caused by the health emergency. The invasion of Ukraine by Russia in 2022, however, led to peaks of the demand especially in Neighboring countries to the conflict areas, regardless of the degree of digitization of their countries.
But the most exemplary case is certainly that of the blackout of the Iberian peninsula, which took place last April, which demonstrated the crucial role of cash as the only method of payment in the event of a blockade of digital infrastructure.
There physical cointherefore, maintains its crucial function also in digital society: it can be used in any offline situation, it is tangible (which transmits greater control and, therefore, greater tranquility in the population) and offers certainty in terms of privacy and immediate access (provided it is available).
In short, the cash can be considered a “spare wheel“Safe for the Payment System, which makes it a sort of insurance for society, low -cost protection against any crises or instability.
Between 70 and 100 euros in cash for each family member: the ECB councils
At the end of his analysis, the ECB recommended to European citizens to keep the cash necessary for home for home cover your essential needs for at least 72 hoursreferring to the initiatives already proposed by some European countries (such as the Netherlands, Austria and Finland), who have already urged their population to keep between 70 and 100 euros for each family member. Among other things, some states like Finland are already experiencing the so -called ATM “Interrupting proof”scheduled to ensure the population access to cash even during the blocks of digital systems.
In short, the European Central Bank has suggested citizens to preserve a reserve of cash which, in the event of a sudden crisis, allows us to carry out the acquisitions essential for several days. At the same time, the authority urged the governments of the 27 EU member countries to adequately prepare the infrastructure and strategic reservesso that they can work adequately even in the case of sudden increases in the cash demand.
