ECB admits euro cash remains indispensable as demand averages over 2% annual growth
The post ECB admits euro cash remains indispensable as demand averages over 2% annual growth appeared on BitcoinEthereumNews.com. After leveling off during interest rate hikes, demand for cash in the eurozone is growing strong again, currently at an annual rate of 2.3%, the European Central Bank (ECB) has recognized. The acknowledgment comes with a new attempt to alleviate fears that the digital euro will replace traditional banknotes and coins that the majority of Europeans want to keep as a payment option. €5,000 worth of banknotes per capita circulating in the euro area Banknotes and coins will continue to play a crucial role, both as a means of payment and store of value, according to Piero Cipollone, member of the ECB’s Executive Board, who published a blog post on Monday devoted to the future of paper and metal money in the eurozone. Euro bills in circulation exceed 30 billion, with their total value reaching €1.6 trillion ($1.85 trillion), the official highlighted in his article. He continued by explaining why paper money is still indispensable and how the monetary authority is working to ensure it remains available in the common currency area. “After plateauing when we raised interest rates – which made it less attractive for people to hold large of amounts of savings in cash – these figures are growing again, currently at an annual rate of 2.3% in terms of volume and 1.7% in terms of value,” Cipollone detailed, elaborating: “To put it into perspective: almost €5,000 worth of banknotes are currently in circulation for each euro area citizen.” To back the quoted figures, the ECB executive referred to a chart indicating that euro banknotes circulating in the eurozone economy have been increasing since early 2024 and are now nearing the all-time high set in 2022. Euro banknotes in circulation are rising steadily. The latest observations are for June 2025. Source: ECB With the exception of the Covid-19…
The post ECB admits euro cash remains indispensable as demand averages over 2% annual growth appeared on BitcoinEthereumNews.com.
After leveling off during interest rate hikes, demand for cash in the eurozone is growing strong again, currently at an annual rate of 2.3%, the European Central Bank (ECB) has recognized. The acknowledgment comes with a new attempt to alleviate fears that the digital euro will replace traditional banknotes and coins that the majority of Europeans want to keep as a payment option. €5,000 worth of banknotes per capita circulating in the euro area Banknotes and coins will continue to play a crucial role, both as a means of payment and store of value, according to Piero Cipollone, member of the ECB’s Executive Board, who published a blog post on Monday devoted to the future of paper and metal money in the eurozone. Euro bills in circulation exceed 30 billion, with their total value reaching €1.6 trillion ($1.85 trillion), the official highlighted in his article. He continued by explaining why paper money is still indispensable and how the monetary authority is working to ensure it remains available in the common currency area. “After plateauing when we raised interest rates – which made it less attractive for people to hold large of amounts of savings in cash – these figures are growing again, currently at an annual rate of 2.3% in terms of volume and 1.7% in terms of value,” Cipollone detailed, elaborating: “To put it into perspective: almost €5,000 worth of banknotes are currently in circulation for each euro area citizen.” To back the quoted figures, the ECB executive referred to a chart indicating that euro banknotes circulating in the eurozone economy have been increasing since early 2024 and are now nearing the all-time high set in 2022. Euro banknotes in circulation are rising steadily. The latest observations are for June 2025. Source: ECB With the exception of the Covid-19…
What's Your Reaction?
