The number of banknotes in circulation in the European Union is rising, despite the widespread use of smartphone payments. New data shows that the huge wildfires that have swept through parts of Europe are also driving demand to hold cash as a reserve for emergencies.
While cash has taken a back seat to electronic payments in many European cities, the amount of physical money in circulation is actually increasing, said Philip Lane, chief economist of the European Central Bank (ECB).
Experts say the increase in the use and holding of cash is linked to concerns about wars, as well as fears of the impact of cyberattacks on online and phone or card payment systems.
"The overall stock of banknotes continues to grow. In terms of transactions, the number of banknotes is falling, but in terms of the total quantity in circulation, it is increasing," Lane stressed.
Last year, British retailer Marks & Spencer faced a sustained cyberattack, which prevented the company from accepting online orders for several weeks.
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In 2025, EU residents were recommended to stockpile enough food, water and other basic products for at least 72 hours, in case of an emergency, such as the devastating fires that swept through France and Spain during this summer season, floods or storms, as well as possible cyberattacks or other hostile events.
Families were recommended to have a crisis kit, which should contain bottled water, a battery-powered radio, canned food, and, above all, cash.
More than 31 million banknotes are currently in circulation, compared to 24 million just before the pandemic in 2019. In 2025, the 50-euro note was the most widely used, followed by the 100-euro note.
Several European countries, including Austria, Finland, Germany, Sweden and the Netherlands, have already recommended that citizens keep between 70 and 100 euros per household, an amount considered sufficient to buy basic products for 72 hours, in case online payment systems and mobile phone apps do not work.
The Central Bank considers cash a critical part of “national crisis preparedness.” It describes it as a paradox that the use of cash for everyday purchases is declining, while more and more people are holding banknotes as a reserve.
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Lane also stressed the need to adopt legislation that would guarantee that the ATM network and the ability to withdraw cash will continue to be present in urban centers and commercial areas across the EU.
