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Another nail in cash’s coffin?

By John Smith • Updated: 01 Nov 2023 • 12:59

Bank of Spain survey into support for digital currency Credit: Bank of Spain

The European Central Bank has confirmed that it plans to push ahead with the digital euro and the Bank of Spain is not only supportive but six months ahead of other banks.

It is clear that the Spain’s Socialist Government (which is currently acting in a caretaker role) doesn’t believe that ‘cash is king’ which is why it introduced laws to stop cash payments in excess of €2,000 and then €1,000.

It is difficult to trace the movement of cash and many banks like the concept of a cashless society as they can benefit by charging merchants for every transaction made by card or transfer.

It is interesting that the Bank of Spain, whilst still in favour of the digital euro, has been sounding out public opinion and had market research company IPSOS undertake two tiny surveys of just 1,600 members of the general public and small businesses about their attitude to digital payment.

Whilst the powers that be may have been surprised by the answers they received; it seems unlikely that they will be swayed from the path of digitalisation.

Just 20 per cent of the public admitted to knowing anything about the digital euro and a similar number of businesses indicated that they would be likely to accept payment by this method whilst 65 per cent (7 per cent more than those responded to a similar survey in 2022) said they positively didn’t intend to accept the digital euro.

Even in the most pro digital age group (18 to 24) only 36 per cent said they were likely to use the currency and this percentage declined as the ages rose with a nominal 7 per cent of those older than 65 being in favour.

Whilst the digital euro may be useful for use in major transactions between large organisations, it seems unlikely that you will be invited to pay for your beer and tapas with digital euros in the foreseeable future.

Thank you for taking the time to read this article. Do remember to come back and check The Euro Weekly News website for all your up-to-date local and international news stories and remember, you can also follow us on Facebook and Instagram.

Written by

John Smith

Married to Ophelia in Gibraltar in 1978, John has spent much of his life travelling on security print and minting business and visited every continent except Antarctica. Having retired several years ago, the couple moved to their house in Estepona and John became a regular news writer for the EWN Media Group taking particular interest in Finance, Gibraltar and Costa del Sol Social Scene. Currently he is acting as Editorial Consultant for the paper helping to shape its future development. Share your story with us by emailing newsdesk@euroweeklynews.com, by calling +34 951 38 61 61 or by messaging our Facebook page www.facebook.com/EuroWeeklyNews

Comments

    • Jessica

      02 November 2023 • 15:54

      Good. Just look at China. We don´t want to have our buying power switched off just because we don´t agree wth the government or say something naughty, We should keep cash if at all possible

    • Philip

      02 November 2023 • 18:10

      Of course banks want you to use cards. They take a slice on every transaction. A 50 euro note stays as a 50 euro note after hundreds of transactions. Cards also enable checks to be made by any authority to trace your spending and sales activities. Use cash when possible.

    • Kevin James Eadie

      04 November 2023 • 10:07

      Keep cash King

    Comments are closed.

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