The European Union is witnessing a significant rise in the amount of cash in circulation, despite a decline in its use for everyday transactions. Data from the European Central Bank (ECB) indicates that the value of banknotes in circulation has increased from approximately 1 trillion euros in 2016 to about 1.6 trillion euros by June 2026. This trend is attributed to growing public anxiety over potential crises, including wars, fires, and cyber-attacks, which could disrupt digital payment systems.
The paradox of increasing cash hoarding amid declining usage in daily transactions was highlighted by Philip Lane, the ECB’s chief economist, during the MacGill Summer School conference in Ireland. Lane noted the growing number of banknotes held by individuals, even as electronic payment methods become more prevalent. The Guardian reports that this trend may be driven by concerns over emergency situations where digital systems could fail, such as during wars, natural disasters, or cyber incidents.
Recent years have seen European countries increasingly prepare for potential disruptions in digital infrastructure. Events like major cyber-attacks have underscored the risks associated with reliance on electronic payment systems. For instance, in 2025, the British retail chain Marks & Spencer suffered a prolonged cyber-attack, causing significant operational challenges.
In response to these concerns, several European countries, including Austria, Finland, Germany, Sweden, and the Netherlands, have advised their citizens to keep a certain amount of cash on hand for emergencies. Recommendations suggest that households maintain between 70 to 100 euros, enough to cover basic needs for about 72 hours if electronic payments become unavailable. This advice is part of a broader strategy to prepare the population for emergencies, alongside maintaining supplies of water, food, and medicine.
The ECB’s data also reveals that the 50-euro banknote is the most popular denomination, followed by the 100-euro note. The number of banknotes in circulation has grown from about 24 billion before the pandemic in 2019 to over 31 billion in 2025. This increase suggests that the reduced use of cash in stores does not necessarily equate to a decrease in the physical money held by citizens.
Experts caution against viewing cash solely as a backup for emergencies. Olive McCarthy, a professor of financial inclusion at the University of Cork, emphasizes the importance of cash remaining part of the everyday financial system. McCarthy warns that if cash usage declines too much, the infrastructure needed for its use may weaken, potentially leaving citizens vulnerable during crises. Cash also offers privacy in transactions and is accessible to those not fully integrated into the digital financial system, including the elderly and vulnerable populations.
The trend of cash hoarding in the EU reflects a broader anxiety about global uncertainties and the potential fragility of digital systems. As the situation evolves, it may influence future monetary policy and consumer behavior in Europe. The ECB and financial experts continue to monitor these developments, considering their implications for the financial system’s resilience and the broader economy.
