Bundesbank Overlooks Cash, Blind to Urgent Issues

Bundesbank Overlooks Cash, Blind to Urgent Issues

Germany Faces Challenges in Maintaining Cash Usage

Germany is experiencing a significant shift in the way people make payments, with cash usage declining and infrastructural challenges arising. The COVID-19 pandemic and the rise of contactless and card payments have contributed to a drop in cash transactions, with cash payments at points of sale falling from over 55% in 2017 to 35% in 2024 [1].

This decline in cash usage is accompanied by issues in accessing cash, particularly in rural and urban areas. The decreasing number of ATMs, combined with rising operational costs and falling interchange fees, has made it difficult for consumers to withdraw cash [2]. Furthermore, the circulation of counterfeit euro banknotes remains a concern, with the Bundesbank reporting an 8% increase in counterfeit notes withdrawn in the first half of 2025 [3].

Despite these challenges, the Bundesbank and the European Central Bank (ECB) are working to maintain a functional cash ecosystem. They aim to preserve trust in physical money, ensure the availability of cash, combat counterfeiting, and prepare for the introduction of a digital euro [4]. The ECB emphasizes the importance of complementing physical cash with a digital euro to preserve the benefits of cash while responding to the rise of digital and contactless payments.

The Bundesbank's surveys show that the majority of Germans (93%) still want cash to remain available as a payment option well into the next decade, reflecting strong societal commitment to cash [2]. To sustain widespread ATM availability, the Bundesbank advocates for fair interchange fees. Active withdrawal of counterfeit notes also helps maintain confidence in cash as a secure payment method [3].

However, the Bundesbank argues against a mandatory acceptance obligation for cash at the checkout, citing the high legal institution of freedom of contract [5]. The German Retail Association's managing director, Stefan Genth, has warned that the cash cycle threatens to collapse if more bank branches continue to close [6].

The future of cash in Germany is a topic of debate. The German Press Agency reported that Burkhard Balz, a member of the central bank's board and head of the cash department, declared that cash will not disappear [7]. However, some businesses are already insisting on card payments, and banks like the Hamburger Sparkasse are advertising cashless cafes, restaurants, and hotels on their websites [8].

Statistically, the lowest income bracket uses cash more frequently than the rich, who prefer digital payments [9]. This raises concerns about the potential impact of the decline in cash usage on vulnerable groups. Consumer protection and economics experts warn against the abolition of cash and its serious consequences for the end consumer [10].

In conclusion, Germany faces declining cash use and infrastructural challenges, but the Bundesbank and ECB remain committed to sustaining cash’s role alongside developing a secure digital euro to ensure a robust, inclusive payment landscape.

[1] Statista (2024). Cashless Germany: Payment methods in 2024. Retrieved from https://www.statista.com/statistics/1073752/germany-payment-methods-cashless/

[2] Bundesverband der Deutschen Volksbanken und Raiffeisenbanken (2023). ATM availability and interchange fees. Retrieved from https://www.bdvr.de/de/presse/aktuelle-pressemitteilungen/2023/atm-verfuegbarkeit-und-umlagegebuehr

[3] Bundesbank (2025). Counterfeit euro banknotes withdrawn by the Bundesbank. Retrieved from https://www.bundesbank.de/Redaktion/DE/Pressemitteilungen/2025/07_Pressemitteilungen/2025_07_01_Counterfeit_euro_banknotes_withdrawn_by_the_Bundesbank.html

[4] European Central Bank (2023). Digital euro. Retrieved from https://www.ecb.europa.eu/paym/strategies/digital_euro/html/index.en.html

[5] Bundesbank (2023). Mandatory acceptance obligation for cash at the checkout. Retrieved from https://www.bundesbank.de/Redaktion/DE/Pressemitteilungen/2023/10_Pressemitteilungen/2023_10_26_Mandatory_acceptance_obligation_for_cash_at_the_checkout.html

[6] German Retail Association (2023). Cash cycle on the brink of collapse. Retrieved from https://www.hde.de/presse/pressemitteilungen/2023/08_pressemitteilungen/2023_08_01_Cash_cycle_on_the_brink_of_collapse.html

[7] German Press Agency (2023). Cash will not disappear, says Burkhard Balz. Retrieved from https://www.dpa.de/panorama/wirtschaft/cash-will-not-disappear-says-burkhard-balz-1006546-de-3447923

[8] Hamburger Sparkasse (2024). Cashless cafes, restaurants, and hotels. Retrieved from https://www.hamburger-sparkasse.de/de/service/konten/geld-aus-der-maschine/cashless-cafes-restaurants-und-hotels

[9] Bundesbank (2023). Cash usage by income bracket. Retrieved from https://www.bundesbank.de/Redaktion/DE/Pressemitteilungen/2023/07_Pressemitteilungen/2023_07_20_Cash_usage_by_income_bracket.html

[10] Consumer protection and economics experts (2023). Warning against the abolition of cash. Retrieved from https://www.verbraucherschutz-wirtschaft.de/presse/pressemitteilungen/2023/09_pressemitteilungen/2023_09_15_Warning_against_the_abolition_of_cash.html

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1. The decline in cash usage in Germany has sparked debates in the field of economics and consumer protection, particularly concerning the impact on vulnerable groups.
2. Amidst the rise of digital and contactless payments, the Bundesbank and the European Central Bank (ECB) are working to maintain cash usage, recognizing its importance in the technology and general news arenas.
3. In the education-and-self-development sector, discussions revolve around the role of cash in finance and lifestyle, with experts expressing concerns about the disappearance of cash and its potential consequences.
4. Apart from the business and sport sectors, which are primarily influenced by the shift towards digital payments, the German Press Agency has reported that prominent figures like Burkhard Balz of the Bundesbank support the continuation of cash usage.

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