The importance of cash as part of our global payment infrastructure has been gaining ground in recent years. After being mistakenly labelled as ‘dirty’ and ‘contagious’ during the COVID years, cash usage is on the rise again in 2025, and while not as widely used as card and digital these days, it remains a vital payment method that a large proportion of the country still relies on.
In November, The Future of Cash Conference 2025 took place in Warsaw, Poland, bringing together cash industry leaders from across the globe. And while the overarching theme of the conference was that cash is very much here to stay and is continuing to gain ground and support across the globe, many of the presenters also spoke about the importance of cash in times of crisis, and how consumers and businesses’ reliance on cash during these times proves how vital it remains to the world’s payment infrastructure.
One of the presenters at the conference was the European Central Bank (ECB). They revealed that the demand for cash peaked during three specific crises that occurred during recent years in the Euro area, namely:
- COVID-19 pandemic
- Russia’s Invasion of Ukraine
- 2025 Iberian blackout
In each of the three cases, it was shown that demand for cash rose exponentially, but in ways that differed due to the type of crisis.
Pandemic
The COVID-19 pandemic, which began in the Spring of 2020 and lasted for the best part of two years, saw a substantial, long-term increase in the circulation of cash in the euro area as people faced a long period of panic and uncertainty and withdrew and used cash to help them budget and feel more in control.
War
This brought about an acute surge of cash, localised to the neighbouring countries of those affected by the war, caused by fear and uncertainty that they could be directly affected next. Cash was considered a safe haven for storing value and as an emergency if they needed to flee their homes in the future.
Blackout
The blackout saw online and digital payments go down, meaning cash was the only payment option that could be used at this time. This prompted strong use of cash as a contingency payment throughout the duration of the blackout and proved that offline payment methods are vital to keep a stable economy when other payment methods cannot be accessed. Cash provided an essential lifeline for both consumers and businesses in this scenario
These findings by the ECB were echoed by the Monnaie de Paris, France’s national mint, who stated during the conference that cash is still in high demand worldwide, and is especially valued in times of crisis.
Why Cash is Best in Times of Crisis
There are a number of reasons why cash is the best option in times of crisis:
- Tangible – when physical cash is in your hand you know exactly how much you are spending and can budget accordingly – this has been particularly useful during the ongoing cost-of-living crisis across the world in recent years, with even younger people ‘cash stuffing’ and making TikTok videos about it to help them budget accordingly
- Reliable – cash doesn’t require wi-fi, data or any other technology to make a payment. It’s great for those without bank accounts or who simply prefer to pay in cash, and can be used in times of network failures, power outages and cyber-attacks, keeping both consumers and businesses happy
- Supports businesses – paying by cash is great for businesses in other ways too, especially small businesses, allowing them to avoid costly bank and card fees, and supporting them directly – they get to keep 100% of their profits with cash
- Resilient – as explored in our recent History of Banknotes article, cash has been around for over 2,000 years and is still going strong. 20% of consumers in the UK still pay in cash for daily expenditures
- Maintains privacy – Cash payments are 100% private – they protect customer data and cannot be traced, avoiding issues like fraud and data breaches
James Harris, MD at cash handling experts Volumatic, who attended the Future of Cash conference, said: “Here at Volumatic, we’ve been shouting about the benefits of cash for years, and it’s really interesting to understand from others in the industry just how cash is also so useful and resilient in times of crisis – whether it be power outages or global pandemics.”
“We’ve seen a resurgence in cash usage over recent years and it’s vital that both businesses and consumers embrace cash and fully support it, as it is an essential part of the payment infrastructure for so many and acts as an important contingency for everyone else.”
