After spending years pushing digital payments to combat tax evasion and money laundering, European Union ministers decided in December to ban businesses from refusing cash. The reversal comes as 12% of European businesses flatly refused cash in 2024, up from 4% three years earlier.

Over one in three cinemas in the Netherlands no longer accept notes and coins. Cash usage across the euro area dropped from 79% of in-person transactions in 2016 to just 52% in 2024. Sweden leads the digital shift where 90% of purchases now happen digitally and cash represents under 1% of GDP compared to 22% in Japan.

The policy change stems from concerns about financial inclusion for elderly and poor populations who struggle with digital systems. Resilience worries also drove the decision after Spaniards facing nationwide power cuts last spring found themselves unable to buy food. European officials worry about dependence on American payment giants Visa and MasterCard. The EU now recommends citizens store enough cash to survive a week without electricity or internet access.

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