FRANKFURT — A new study from the European Central Bank (ECB) is urging households to keep cash reserves at home, stressing that physical currency remains a vital safeguard in times of crisis.
The research, titled Keep Calm and Carry Cash, analyzed consumer behavior during emergencies such as the COVID-19 pandemic and Russia’s 2022 invasion of Ukraine. It found that demand for banknotes spiked in every major crisis, underscoring the role of cash as both a practical tool and a psychological reassurance.
Recommended Cash Levels
Authorities across Europe are increasingly issuing guidance to citizens on cash preparedness. In the Netherlands, Austria, and Finland, households are advised to keep €70–100 (US$82–117) per person on hand — enough for about 72 hours of basic expenses. Sweden goes further, recommending families calculate at least a week’s worth of essentials (food, medicine, fuel) and hold the equivalent amount in small denominations for use if digital systems fail.
“A Spare Tire” for the Payment System
The ECB study likened cash to a “spare tire” for the financial system: rarely needed, but indispensable when trouble arises. During the pandemic, income uncertainty drove prolonged periods of cash hoarding, while Russia’s invasion of Ukraine triggered sharp spikes in withdrawals across Eastern Europe.
Governments Reinforcing Preparedness
In response, governments are updating survival guidelines. The European Commission this year recommended all EU households stockpile enough supplies for at least 72 hours. Sweden and Finland have revised national preparedness handbooks to include advice on maintaining cash alongside instructions for dealing with power outages, cyberattacks, and food security risks.
With geopolitical tensions, cyber threats, and extreme weather growing, experts warn that overreliance on digital payments could leave households exposed. Maintaining even modest amounts of cash, they argue, can be critical in ensuring access to essentials when electronic systems fail.