Bulgaria Pledges Constitutional Protection for Cash Payments Amid Digital Euro Fears

Concerns over the future of cash payments have reached new heights in Bulgaria, where Prime Minister Rumen Radev's government has pledged to guarantee the right to pay in cash in the country's Constitution.

This move comes despite the European Union having repeatedly stressed that the planned digital euro is intended to complement cash rather than replace it. In fact, the European Commission and European Central Bank have made clear that the digital euro will allow people to choose between cash, bank cards, and the new digital form of the currency.

According to Adrian Nikolov of the Institute for Market Economics, there is 'no need' for such a constitutional amendment. He argues that it amounts to protection from a danger that does not currently exist.

The debate over cash has been linked to the development of the digital euro, which critics have portrayed as the first step toward eliminating cash and reducing people's freedom to choose how they pay. However, the European institutions have presented the digital euro as an additional payment option, one that would be issued by the European Central Bank and directly guaranteed by the ECB.

The available evidence suggests that cash remains widely accepted and actively supported by European institutions alongside the development of the digital euro. In fact, a survey found that 92% of physical stores in the euro area accept cash, with Bulgaria boasting an even higher acceptance rate of 97%.