‘Keep calm and carry cash’: Keep banknotes at home

HalfDime

“Cash provides essential redundancy – a ‘spare tire’ – for the payment system,” the study’s authors write. “This redundancy is vital for any system, as no system is infallible.”

The unprecedented Covid-19 pandemic saw sustained cash hoarding by Europeans driven by prolonged uncertainty, including about their future income, they note.

Meanwhile, Moscow’s full-scale invasion of Ukraine triggered a spike in demand for cash that was concentrated in countries bordering either Ukraine or Russia. This suggests “people responded to heightened proximity to potential disruptions by accumulating portable liquidity,” the researchers write.

Ensuring that Europeans are prepared for potential crises, such as war, has been high on authorities’ agendas in recent years.

In March, the European Commission issued guidance saying European Union citizens should stockpile enough food and other essentials to sustain them for at least 72 hours in the event of a crisis. The 18-page document said Europe was facing a new, bleaker reality, citing the war in Ukraine, sabotage of critical infrastructure and electronic warfare as prominent factors.

And last year, Sweden and Finland updated guidance to their citizens on how to survive war. Booklets distributed to households also included instructions on how to prepare for communications outages, power cuts and extreme weather. The advice ranged from stockpiling bottled water and sanitary products, to growing edible foodstuffs at home.
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Wasn't the digital economy suppose to solve all problems?

derryb

European Central Bank sees trouble ahead and is avising to "keep calm and carry cash."

asheland

I use my Apple Pay and Apple Card for virtually everything, but no matter what, I always have cash on me in case the system is down… I do agree it’s good to have some cash as a back up…