Europeans Stockpiling Cash Amid Fears of Emergencies

The European Central Bank's chief economist, Philip Lane, has highlighted an unexpected trend in cash holdings among Europeans. Despite the rise of digital payments, people are stockpiling banknotes due to fears over wildfires, conflicts, and other emergencies.

Last year, citizens were advised to prepare for potential crises by storing food, water, and essentials for 72 hours. This included cash as a critical component of their crisis packs.

ECB data shows that the value of banknotes in circulation has risen from approximately €1 trillion in 2016 to €1.6 trillion in June 2026.

Olive McCarthy, a professor at University College Cork, emphasized the importance of continued cash usage, warning that if people stop using it when there isn't a crisis, it might not be easy to use it when there is.