# Global trends in physical cash holdings and usage

> Live situation record from CLSTR: https://clstr.news/situations/global-trends-in-physical-cash-holdings-and-usage
> Updated: 2026-08-24T10:54:17.000Z. Sources: 30. Developments: 2.

In the European Union, the total stock of banknotes in circulation has increased significantly, rising from approximately €1 trillion in 2016 to a new record exceeding €1.636 trillion by mid-2026. The European Central Bank describes this phenomenon as the ‘banknote paradox’, noting that while the frequency of cash used for daily transactions is declining, the total amount held is growing.

Specifically, the share of cash payments in shops fell from 72% to 52% of transactions between 2019 and 2024, yet the number of banknotes in circulation grew from roughly 24 billion to over 31 billion. ECB Chief Economist Philip Lane noted that this trend is often linked to periods of uncertainty, such as the COVID-19 pandemic, the war in Ukraine, and concerns regarding the stability of electronic payment systems due to cyberattacks, power outages, or natural disasters.

Consequently, 62% of Eurozone residents consider the ability to pay with cash to be ‘very’ or ‘quite’ important. Several nations, including the Netherlands, Austria, and Finland, have recommended that households maintain a cash reserve to cover essential needs during a digital system failure. As of August 2026, these preparedness measures include specific guidance: Austria recommends up to 100 euros per family member, while the Netherlands suggests 70 euros per adult and 30 euros per child to ensure readiness for at least 72 hours during extreme crises. Experts advise keeping these funds in small denominations to facilitate the purchase of essential goods like food, water, and medicine.

In the United States, cash’s share of consumer payments has declined from roughly one-third in 2016 to 14% in 2025. However, cash remains a common tool, with 76% of Americans carrying it in 2025 and 90% of respondents intending to continue its use. Usage remains higher among older populations, rural residents, and lower-income households.

## Claims

- The total stock of banknotes in the EU is increasing despite a decrease in their use for daily transactions. (disputed by 12 sources)
- The value of banknotes in circulation in the EU rose from approximately €1 trillion in 2016 to €1.6 trillion in June 2026. (disputed by 12 sources)
- EU residents were advised in 2025 to maintain a 72-hour emergency supply of food, water, and cash. (corroborated by 14 sources)
- Anxiety regarding wars, wildfires, and cyber-attacks is driving the increase in cash reserves in Europe. (corroborated by 13 sources)
- More than 31 billion banknotes are currently in circulation in the EU. (corroborated by 11 sources)
- The €50 note is the most popular banknote in 2025, followed by the €100 note. (corroborated by 11 sources)

## Timeline

### 2026-08-24: Romania monetary indicators show decline in non-governmental credit

Romania's non-governmental credit fell by 0.3% in July 2026, while public debt has reached 61.4% of GDP, with 84 billion euros in debt due for refinancing between 2027 and 2030.

15 sources. https://clstr.news/cluster/european-central-bank-reports-record-euro-banknote-circulation

### 2026-08-21: Euro banknotes in circulation rise to €1.6 trillion amid crisis fears

Euro banknotes in circulation have risen to €1.6 trillion as Europeans increasingly hold cash as an emergency reserve against risks like war, cyber-attacks, and natural disasters.

19 sources. https://clstr.news/cluster/russian-depositors-withdraw-billions-amid-economic-fears

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Cite as: Global trends in physical cash holdings and usage. CLSTR, https://clstr.news/situations/global-trends-in-physical-cash-holdings-and-usage