Spain’s Government Plans to Cut Cash Payments & Gradually Eliminate Cash to Move Towards Cashless Society

Spain’s coalition Government plans to cut cash payments and aims to gradually eliminate cash, in a bid to move towards a cashless society.

THE Government’s Ministry of Finance plans to cut cash payments from €2,500 to €1,000 in a bid to fight fraud. The socialist party tried to reduce the maximum limit for cash payments from €2,500 to €1,000 in early 2019, but failed. However, the new coalition government has indicated that it plans to re-propose the idea and get cash payments reduced to €1,000.

It has also indicated plans to gradually eliminate cash and wants to discuss the issue in Congress. According to government sources, the decision to gradually eliminate cash was made during the pandemic, when the public was encouraged to use cards and make online payments and avoid cash payments. Although a date to discuss this issue has not been decided, Spain’s socialist party PSOE said it is open to discuss the topic with the other groups in the Finance Commission to start the ball rolling.