Cash shorts are booming: 400 billion euros in German households!

Cash shorts are booming: 400 billion euros in German households!

Deutschland - Cash demand in Germany shows unbroken inflammation despite change to electronic payment methods. Current estimates of the Bundesbank are currently stored in the households of the Federal Republic. This trend towards the hoarding of cash, especially in uncertain times, shows a significant change in the payment behavior of the population. The banknotes that are used for value storage already accounted for 42% of the cash stock - an increase of almost two and a half times as in 2013.

When considering the payment methods, it can be seen that in 2023 50% of the payment processes were handled in cash, even though this was only 25% of the total turnover. The preference for debit cards displaced cash as the most widespread means of payment; Only 23% of those surveyed still prefer cash. The retail trade is increasingly tended to electronic payments, especially contactless payments, which underlines the change in the payment method landscape.

Background of cash shortening

Ralf Wintergerst from Giesecke+Devrient emphasizes that the uncertainty, especially in times of crisis, is the main cause of hoarding cash. A historical maximum level of 43% of the amount of cash stored for value storage was reached during the Corona pandemic. Such climbs in times of crisis are common and reflect the need for security. The increase in the amount of cash must also be explained by factors such as hoarding, shadow economy and the function of cash as a reserve currency abroad. For example, cash is often also used in criminal transactions, as an incident shows in which one million euros was found in a car.

die Deutsche Bundesbank underlines the importance of cash and attempted to maintain its use and infrastructure. Cash remains a powerful means of payment regardless of electrical infrastructures. The current development shows that the amount of cash has risen by around 300 billion euros in circulation since the beginning of the pandemic, even if the growth rate has slowed down since 2022, it remains positive.

future prospects for cash

die Deutsche Bundesbank Study developed scenarios for the future use of cash in Germany. This strategic approach takes into account social, political, technical, economic, ecological and legal context factors. The aim of these scenarios is to provide decision -makers basics for future -oriented strategies in a complex world.

Developments related to cash show the ambivalence of the topic: While society is increasingly digitizing, a significant amount of cash remains, which illustrates the challenges and opportunities in payment transactions. The ongoing analysis of these trends will be decisive in order to meet both the demand for cash and the growing electronic forms of payment.