FLASH
Shkruar nga Pamfleti
The European Central Bank recommends that citizens keep a small cash reserve of 70 to 100 euros per person at home, following the example of countries such as the Netherlands, Austria and Finland.
According to a study published on Wednesday, banknotes still constitute a critical safety net in times of crisis when digital payment systems collapse.
The ECB report also reinforces the European Commission's recent call for citizens to maintain a three-day supply of cash, food, water and medicine, so that they are able to cope with potential disruptions to essential services.
The war in Ukraine, the Covid-19 pandemic and natural disasters such as fires and floods have highlighted Europe's gaps in emergency response, as reported by the Financial Times.
Although digital payments have become widespread in everyday transactions, the demand for cash increases significantly when trust in the systems is tested. A typical example is the pandemic, when cash held by citizens increased by 140 billion euros in two years, while recently, in the Iberian Peninsula, long-term power and telecommunications outages made banknotes the only means of transaction.
The ECB compares cash to a “reserve” for the financial system: it is not needed on a daily basis, but becomes essential when all other means fail.
Some countries are already adapting their infrastructure. Finland is developing ATMs that will work even if banking systems are down, while Austria plans to install new machines from its own central bank in areas where commercial banks have limited access to cash.
Lini një Përgjigje