Data presented by Philip Lane, chief economist of the European Central Bank (ECB), indicates that the volume of physical banknotes in circulation within the European Union is growing. This trend persists even as contactless and smartphone-based payment systems become the standard for daily transactions in many European cities.

According to Lane, the increased demand for physical currency is largely driven by public concern over external threats. Specifically, the report highlights that recent wildfires across Europe, ongoing geopolitical wars, and the perceived vulnerability of digital payment networks to cyber-attacks have encouraged individuals to maintain an emergency stash of cash. While digital payment adoption remains high, the ECB suggests that cash is increasingly viewed as a reliable fallback during times of systemic instability or infrastructure failure.