Spain’s Pro-Cash Platform Makes a Difference

Denaria Platform is a Spanish association established to support payment choice through the maintenance of cash. It is working to ensure society is aware just how important cash is both economically and for financial and social inclusion. Its President, Javier Rupérez, presented its work at the Future of Cash conference in Madrid in September 2022.

In September 2021 Denaria Platform commissioned and published a survey about the role of cash in Spanish society.

The results showed an overwhelming attachment to and understanding of the role of cash. 70% of Spaniards considered access to cash essential in their lives, just over 30 million people.

In this context, Denaria Platform is highlighting that removing the ability of people and businesses to use cash has the most effect on socially or economically vulnerable groups, such as the elderly, the disabled, rural areas or small businesses. Many citizens in Spain feel themselves financially excluded. Rural areas in Spain face particular challenges of depopulation and cash is particularly important for these communities.

Denaria Platform has also pointed out that cash infrastructure is critical national infrastructure due to its role as a contingency option should digital payments fail. If cash infrastructure is not maintained across the geography of the nation, it cannot fulfil this role either day-to-day or in an emergency. Denaria Platform is campaigning on this front both for reasons of inclusion and as part of the nation’s risk management strategy.

The current cash payment limit in Spain is €1,000 when at least one of the parties involved in the transaction is acting in a professional or business capacity. The European Central Bank (ECB) criticised this limit as being disproportionate. 

On 15 March 2022 the ECB gave an opinion on this: ‘against this background, the ECB considers the lowering of the limit on cash payments in transactions where any of the parties acts in a professional or business capacity to €1,000 to be disproportionate. It will have an adverse and undesired impact on the legal tender status of euro banknotes. In addition, this cash payment limit significantly reduces the ability of payers to use euro banknotes and the freedom of citizens to choose how to pay.’ 

The Denaria Platform has formulated three recommendations to ensure future access to cash:

1. Removal of all existing barriers to cash handling.

2. Mapping the areas at risk of financial exclusion, considering geographical, socio-economic and cultural factors, and ensuring access to cash and other financial services. This would include establishing a maximum distance between ATMs.

3. Declaring the cash infrastructure part of the Critical National Infrastructure.

Perhaps Denaria Platform is making progress. In May 2022 the Royal Decree 24/2021, or General Law for the Protection of Consumers and Users, made it mandatory for retailers to accept cash. Refusing a payment in cash is considered a violation of the law.

Certainly the September 2021 survey would suggest that popular opinion supports this move, given that 90% of the survey’s respondents defended the need for cash as a payment method, more than 70% of the population considered it necessary for society and 77% described it as a ‘public good’.

In addition to providing information, commissioning research, running events and lobbying, Denaria Platform is offering merchants stickers that say, ‘This trade is inclusive: we accept cash’ and it has a manifesto which it asks people to sign up to.

It is clear that the Bank of Spain is also supporting cash given its innovative research mapping access to cash in Spain and its initiatives to maintain the infrastructure.

Austria’s Central Bank Actively Supports Cash

The Oesterreichische Nationalbank (OeNB) launched its Euro Cash 360 Platform mid-September 2022. The platform brings together OeNB and Münze Österreich with representatives of the general public and business to explore ways for creating attractive framework conditions that support and ensure the future use of euro cash in Austria.

The aim of the Platform is:

• to ensure a comprehensive flow of information between stakeholders.

• to strengthen and secure the position of cash in Austria against the backdrop of cash being the only non-profit oriented means of payment in an increasingly digital payment space.

• to involve the people living in Austria, which OeNB considers crucial especially in light of advancing digitalization.

OeNB has said that cash fulfils important functions ensuring secure, stable and accessible payment transactions even in difficult times.

At the launch a wide range of people spoke supporting the initiative. In addition to the Governor of OeNB, and two previous Governors, and Münze Österreich, the Austrian Economic Chambers, Chamber of Labour, Consumer Protection Association VKI, Senior Citizens’ Association, Association of Towns and Municipalities also spoke.