Cash Remains Preferred by Bundesbank
In the ever-evolving world of finance, Germany's ATM landscape continues to be a blend of traditional bank machines and an emerging segment of Bitcoin ATMs. While the global ATM market is projected to grow, security concerns persist.
The latest statement from Bundesbank board member, Burkhard Balz, highlights the significance of cash as a resilient and independent means of payment, especially during crises such as power outages or cyber attacks. He emphasised that cash cannot be hacked, making it a crisis-proof option.
Despite the rise of digital payments, cash remains a preferred choice for more than half of transactions at the checkout in 2023. This trend is expected to continue for the next 10 to 15 years.
In light of this, Balz called for more cooperation, suggesting that German banks could learn from the Netherlands, where banks operate their cash machines jointly via a central society. However, there is no evidence to suggest that German banks are moving towards a similar model at present.
Balz also supports a certain cash regulation, advocating for a Europe-wide cash transaction limit of 10,000 euros from 2027. He believes this is a good compromise that will support the continued use of cash while addressing security concerns.
Balz is a firm believer in the freedom that cash offers, stating "Cash is lived freedom", although the context of this statement remains unclear.
As the digital euro is expected to be introduced at the earliest in 2029, Balz emphasises that it should complement, not replace, cash. He stresses the importance of maintaining a balance between digital and traditional payment methods to ensure broad access and choice for consumers.
In some regions of Germany, it could become more difficult to get cash in the future. With the number of cash dispensers decreasing, Balz admits that the number of bank branches has also significantly decreased recently. However, the current state of the cash supply in Germany is well-covered, according to Balz.
The ongoing development in Germany's ATM landscape underscores the country's commitment to maintaining a balance between traditional banking and emerging technologies. While the digital revolution continues, cash remains a vital component of the financial infrastructure, offering anonymity, security, and control that contributes to its high affinity among consumers.
Technology plays a vital role in the evolution of Germany's ATM landscape, with Bitcoin ATMs representing an emerging segment. However, despite the integration of digital technology, cash continues to be a preferred choice for more than half of transactions in businesses, underlining its significance in finance.
