EU Banknote Stock Rises Amid Crisis Preparedness Concerns

The stock of banknotes in circulation within the European Union has increased significantly despite the rise of contactless and smartphone payments. Data from the European Central Bank shows the total stock grew from approximately €1bn in 2016 to €1.6bn in June 2026, with over 31 million notes currently in circulation.

This growth is driven by public anxiety regarding cyber-attacks on payment systems, wars, and natural disasters, such as catastrophic wildfires in France and Spain. In 2025, EU residents were advised to maintain 72-hour emergency stockpiles. Specific recommendations in Germany, Austria, Finland, Sweden, and the Netherlands suggested households keep between €70 and €100 in cash.

Philip Lane, the chief economist of the European Central Bank, described the trend as a paradox where cash use for daily transactions is falling while the total stock grows. He emphasized that cash remains critical for national crisis preparedness. Olive McCarthy, a professor at University College Cork, argued that continued cash use is vital for financial inclusion and warned that if cash is viewed only as a backup measure, it may not be easy to use during an actual crisis.