Cash is King? Spain's Declining Cash Use and the Need for Emergency Funds

Galicia, Spain – Cash Use Declines: Only 57% of Spaniards Use Cash Daily. A recent report from G24 Noticias highlights a significant decrease in the daily use of cash among Spaniards. The survey shows that only 57% of the population uses physical money daily, a drop from 65% in 2023. This trend is particularly noticeable among younger generations, who increasingly rely on digital payment methods. However, older individuals (over 55) still prefer cash. The recent widespread power outage on April 28th further emphasized the reliance on cash in situations where digital transactions fail. "If we know them, they pay the next day, we take their information. But it's a problem: if technology fails, we're stranded," says Delmiro Vidal, manager of the Tahona Colmeiro bakery in Vigo. In response to such incidents, the Central Bank of the Netherlands recommends including cash in emergency kits, suggesting €70 for adults and €30 for each child. This highlights a growing awareness of the need for contingency plans in a progressively cashless society. The report underscores the ongoing shift in payment preferences and the potential vulnerabilities of a system overly reliant on technology.