[REVISION HISTORY]

Global trends in physical cash holdings and usage

Updated 4 times since CLSTR started tracking revisions of this situation.

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2026-08-24 12:22 UTC → 2026-08-24 13:42 UTC · added ~~removed~~

In the European Union, the total stock of banknotes in circulation has increased significantly, rising from approximately €1 trillion in 2016 to ~~€1.6~~ a new record exceeding €1.636 trillion by ~~June 2024.~~ 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. ~~The European Central Bank attributes~~ ECB Chief Economist Philip Lane noted that this trend is often linked to ~~heightened anxiety regarding geopolitical conflicts, natural disasters like wildfires and floods,~~ periods of uncertainty, such as the COVID-19 pandemic, the war in Ukraine, and concerns regarding the ~~potential for cyber-attacks to disrupt digital~~ stability of electronic payment ~~infrastructures.~~ 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.

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