"Despite that another forms of payment have become more common today, cash continues to play an crucial function in society. This is the only payment available to anyone. To usage it, you don't request any peculiar technology specified as apps, credit cards or electronic identification. It's easy to cash it out and keep it at home. Cash is central bank money, which means its value is guaranteed by the State. No intermediaries are needed for cash payments."
This quote definitely comes from the website of the Institute of civilian Affairs or another organizations fighting the marginalization of cash, right? That's not true! It is simply a translation Communication published on the pages of the Swedish civilian Protection and Preparedness Authority. This message explains why it is always worth to have a supply of cash at home, especially in alleged "unquiet times".
Cash for the crisis
The same office besides released a well - known and widely discussed brochure “In the event of a crisis or war. crucial information for Swedish residents” in which it instructs citizens to do what to do in the event of a war (Polish language version of the brochure available at https://rib.msb.se/filer/pdf/30877.pdf). The brochure, which includes a call for democracy and the shared work of all citizens to defend the country in the event of armed assault, is interpreted as an component applied to Western societies from February 2022 on by political engineering of fear, which serves as an instrument for controlling them in a changing geopolitical reality.
For us, however, it is interesting for another reason: in the section devoted to preparing ourselves and home for war, it mentions that cash should always be held in different denominations, and cash stocks should be made for at least a week.
Interestingly, cash seems to be needed not only for the eventuality of war.
In addition to the validity of access to credit cards and electronic payments, the authors of the brochure stress that it is worth “using cash from time to time”. The website, on the another hand, explains why to do this – namely, to “do not get utilized to” from what banknotes look like and how they work. In Poland we may not be in danger of getting “weary” of cash and forgetting how physical banknotes work. However, there are more and more frequent situations where it is hard to pay in cash in shops or service shops, due to the fact that sellers are "not to spend". This is, of course, due to the strong pushing of electronic payments, which in public space are presented as more "modern", "comfortable" and in general in line with the spirit of time.
According to the Swedish Central Bank, this is not an optimal situation, especially in times of political unrest and crises. Therefore, in co-produced with the civilian Protection Authority Instructional video entitled “How to Prepare for the Financial Crisis“ The bank instructed Swedish citizens to always have a supply of cash at home for a week. This will cover basic surviving expenses (food, medicines, petrol) in the event of a situation in which, as the authors put it, "you cannot trust on social services" and public systems.
It's best to prepare cash in tiny denominations. This will let in the event of deficiency of access to electronic systems to avoid the situation from the “I am not to spend”.
Second brochure, prepared by the Finnish State Office of Preparedness (Huoltovarmuuskeskus) and the Central Association of the Rescue manufacture besides assumes that citizens should be able to last ‘in isolation’ only 72 hours. With a tiny amount of text and large colour illustrations, it presents what you request at home to last “without state aid” specified a predetermined number of hours. Food products are calculated to the nearest gram, and the request for cash is mentioned.
By the way, it is worth asking whether a country whose citizens do not have the skills to last for more than 3 days alone can consider itself well prepared for a crisis situation?
Finland and Sweden justify the request for citizens to have cash in peculiar for various types of crises. The leaflets and brochures quoted earlier mention war, environmental disasters, violent storms, power shortages.
Other countries besides see another kind of threat to which cash is used. The Dutch Central Bank and the commercial banks operating in that country fear cyber attacks, for example, whose number was to increase especially after the outbreak of the war in Ukraine. Therefore, in the Netherlands too, citizens were reminded in 2024 to always have a certain amount of cash. At the minute it is – note! – a full 50 euros. The Dutch Bank Federation promised to update its recommendations on cash in 2025. Who knows, possibly the amount needed to last a crisis will be raised? However, even if that were the case, the Dutch insurance companies are already informing you not to keep a large amount of money at home due to the fact that they will not be able to be insured as part of home insurance, which will lead to a sad situation in the event of, for example, theft...
Cash full of contradictions
Thus, in the authoritative discourse of institutions whose mission is to defend societies from various types of crises, even in heavy digitised Scandinavian countries, cash is promoted on the 1 hand as the best instrument to guarantee a fast endurance in the event of a social collapse, but on the another hand there is always any "but".
You gotta have cash, but not besides much, just for a fewer days, and preferably not at home.
Cash is the basis on which state financial systems are based, the most durable and apparent average of value. On the another hand, banks, including central banks, consider that in their communications they should besides item the advantages of electronic payments and thus go “with the spirit of time”.
Cash is to adapt to a fresh social reality in which its function appears to be brought into the crisis management instrument alternatively than direct regular payments.
This internally inconsistent discussion on cash is evidenced by references to citizens, press releases, statements made by decision-makers from different countries. In 2023, for example, a symposium was held in Germany by Deutsche Bundesbank (German national Bank) on ensuring access to cash in times of crisis. Joachim Nagel, president of the bank, stressed the crucial function of cash in social life in the beginning speech, however, especially in the context of unforeseen situations, erstwhile for any reason electronic systems cease to operate. In the same speech, however, he pointed out that to this day German-speaking people are very attached to cash payments and that the amount of cash in circulation, despite the increase in electronic payments, grew by 6% per year in Germany over the last 10 years.
Cash and digital euro
Interestingly, arguing for the importance of the availability of cash as a means of payment that is most trustworthy due to the fact that it is issued straight by the State, Nagel besides addressed the issue proposed by the European Central Bank for the digital euro. The digital euro, as the currency of the central bank, would, in his opinion, have all the advantages of physical cash, plus 1 more: digitality (!). At the moment, cash is the only anticipation for individuals to have money issued centrally, while all another forms of money (e.g. electronic) are issued by private entities, e.g. banks. The introduction of the digital euro as a European CBDC (abbreviated by Central Bank Digital Currency, or digital currency of the central bank) would, in his view, change the situation in favour of citizens. "This would let citizens to pay centrally issued money besides in digital space. In the shop, in the restaurant or during online shopping," she argues.
Unfortunately, Nagel does not see the dangers that the introduction of the CBDC would pose to the same citizens he wants to facilitate online shopping. The ability to program currency according to the will of the state authorities, to turn it on and off, to control the way money is spent and to look into the finances of all citizen – these are threats that are becoming aware of by an expanding number of people.
According to a survey carried out in Germany, acceptance of the digital currency among citizens is not apparent despite the arguments put forward by Nagel. At the same conference, prof. Julia Pitters, who specializes in money psychology, called for investigation into attitudes towards the eventullated liquidation of cash and trust in its digital counterpart issued by central banks. Studies show that as many as 60% of respondents would be more willing than the CBDC would benefit from the services of already known payment intermediaries specified as Klarna or Paypal.
In conclusion, we are now witnessing quite a few overestimation about the function and future of cash in society.
On the 1 hand, cash is discredited by electronic payment intermediaries and actual monopolists specified as Visa and Mastercard, who recruit for their media operations various institutionally equipped “experts” and politicians. On the another hand, central banks and safety offices in many countries issue information on the importance of cash and the request to guarantee permanent access to it. On the another hand, stressing the importance of cash can in itself become an instrument to advance central bank digital currencies and even, in the final analysis, the full elimination of physical money.
To see the real existence of specified a possibility, it is worth giving another quote from Joachim Nagel’s speech. It states that "the digital euro is not intended to replace cash but simply to supplement it. As long as the request for cash persists, the Eurosystem will continuously supply adequate cash."
The question is, who and erstwhile will decide whether the request for cash truly is, or isn't?
How much will citizens and nonsubjective non-interested experts participate in this decision? So far, it's a rhetorical question.
