New data indicates a notable increase in the number of banknotes circulating within the EU, despite the widespread adoption of smartphone payments. Philip Lane, chief economist of the European Central Bank (ECB), stated at the MacGill summer school conference in Ireland that while cash use for transactions is declining, the overall stock of banknotes is growing.
This rise is attributed to public anxiety concerning potential conflicts, the impact of cyber-attacks on digital payment systems, and recent catastrophic wildfires in Europe. In 2025, EU residents received advice to prepare for emergencies by stockpiling food, water, and essentials for 72 hours, with cash being a critical component of these crisis packs.
ECB data, which tracks banknote circulation, shows a rise from approximately €1 billion in 2016 to €1.6 billion by June 2026. Over 31 million notes are now in circulation, up from 24 million before the pandemic in 2019. The €50 note was the most popular in 2025, followed by the €100 note.
Several European countries, including Austria, Finland, Germany, Sweden, and the Netherlands, have recommended that households keep between €70 and €100 to cover essential needs for 72 hours if online and mobile payment systems fail. Olive McCarthy, a professor at University College Cork, emphasised the importance of continued cash use, warning that if it is only viewed as a backup, it may not be readily available when truly needed.