Cash in danger: OENB is fighting for legal acceptance!

Cash in danger: OENB is fighting for legal acceptance!

Österreich - The Austrian National Bank (OENB) has spoken out in a current advance for legal regulations for accepting cash in Austria. This step takes place in the context of an intensive discussion about the role of cash, which is more pronounced in Austria than in many other European countries. OENB director Eduard Schock emphasizes the need to create legal foundations in order to take into account the wishes of the population for cash.

According to the latest surveys, 94 percent of Austrians use cash, while the number of business that does not accept cash, rose from 6 percent to 9 percent in 2020. Shock warns that the increasing rejection of cash payments endanger the freedom of choice of consumers.

cash and digital payment methods

In order to ensure the supply of cash from the population, the OENB together with the Austrian Association and Banks has made an agreement to provide for the equipment of up to 120 locations with ATMs. If this is not sufficient, additional regulatory measures could be necessary.

A central point in the discussions is the proposal of the EU Commission to create a national authority that deals with the challenges and future of cash. The OENB is aiming for an equality of cash and a future digital euro, for which an obligation to accept is also intended.

Promotion of digital Euro

As part of these efforts, the EU Commission also published suggestions for strengthening the euro as cash as well as the introduction of a digital euro. Euro level is to be classified as a legal means of payment in order to guarantee access to banknotes and coins. Executive Vice President Valdis Dombrovskis emphasizes that the digital euro complement, should not replace.

A survey has shown that 60 percent of the respondents continue to preferred cash as a means of payment, while the use of digital payment methods is growing steadily. Covid 19 pandemic in particular has strengthened this trend. The EU Commission proposed two packages of measures: a legislative proposal to ensure the acceptance of cash and one for the creation of a legal framework for the digital euro.

The digital euro is presented as an inexpensive, safe and resistant option and could be used both online and offline. Interestingly, data protection is emphasized in offline payments, since fewer personal data must be disclosed. Dealers would be obliged to accept the digital euro, except very small companies.

Thus, the digital euro is viewed as an important instrument to safeguard the currency sovereignty of the EU in an increasingly digitized world. The ongoing developments underline the need to keep cash and digital payment methods in a harmonious balance in order to meet the demands of consumers.

The point of view of the OENB and the EU about cash acceptance shows the importance of keeping an eye on the needs of the population, while new technologies are implemented in payment transactions. kosmo and EU Commission