Bundesbank Executive Board member Burkhard Balz has spoken out in favour of a future that includes cash: Let us work together to ensure that cash keeps its time-tested place in an increasingly digitalised world, he said in his speech at the Bundesbank’s cash symposium in Berlin. 

In 2020 and 2021, we saw a significant push towards cashless payments, said Mr Balz. Even after the coronavirus pandemic, payment habits among the general public continued to change. For example, mobile payments using a smartphone or smartwatch tripled within the space of just two years from 2021 to 2023. 

Access to ATMs increasingly difficult

One current issue is that it is becoming increasingly tricky to access ATMs, with 15% of survey respondents now reporting that they find it difficult to get to an ATM. Acceptance of cash at physical points of payment is also in decline. Particularly noteworthy is the low level of acceptance at offices of public authorities, where less than half of transactions were able to be paid in cash. Due to the public sector’s function as a role model, this is a situation that we should keep a close eye on, said Mr Balz.

In his view, however, these developments do not mean that Germany is turning its back on cash. According to a study conducted by the Bundesbank, two-thirds of the population want to continue to have the option of using cash. When asked about the future, more than 70% of people in Germany wanted cash to be used to the same extent as it has been thus far or even used to a greater extent again. “In the future, too, everyone should be able to decide for themselves how they want to pay,” Mr Balz continued.

Cash to be complemented by the digital euro

For the Bundesbank, cash is and will remain its core physical product. This is why the Bundesbank is actively committed to cash, which could be complemented by the digital euro in the future, explained Mr Balz. He continued that cash and the digital euro were not competitors, but rather meaningful complements to one another. He then appealed to the participants at the event: It is up to all of us to safeguard cash and cashless payment methods, whilst at the same time taking advantage of the distinct benefits that each has to offer.”

Further panel discussions on cash, attractiveness and crises 

Kolja Gabriel from the Association of German Banks, Matthias Schroth from the Austrian National Bank, Jelena Stapf from the Bundesbank, and Oliver Krist from the “Bargeld zählt!” association took part in a discussion about the attractiveness of cash. Other topics included the positioning of cash as a standalone brand, banknotes and coins as a means of payment for society as a whole, and new approaches to maintaining cash infrastructure. 

Another panel discussion focused on the topic of “Chaos, catastrophes, crises: can cash save us?”. Moderated by Stefan Hardt, Director General Cash Management at the Bundesbank, it saw economists Gerhard Rösl, Franz Seitz and Nikolaus Bartzsch discuss how various crises in different countries had an impact on demand for banknotes and how cash can have a stabilising effect in the event of a crisis.