Making euro cash fit for the future

 The role of cash has been hotly debated in recent years, especially as the pandemic-driven surge in digital payments has reduced its share in day-to-day transactions, triggering concerns about its future.^[1] However, cash is also used as a store of value and demand for it has stayed strong across age groups.^[2] Moreover, Europeans want to retain the option to pay with cash^[3], so they expect it to remain available in the future.

Against this background, the ECB and the European Commission have been working on strategies to protect euro cash and make it fit for the future. In June 2023, the Commission published the Single Currency Package, which includes two key legislative proposals: one to protect the legal tender status of euro banknotes and coins (the Legal Tender of Cash Regulation) and another for the digital euro (the Digital Euro Regulation).^[4] The ECB’s Governing Council welcomed these legislative proposals and their objective to establish a coherent legal framework. The digital euro, banknotes and coins will complement each other, enhancing the range of payment options available by offering cash in both physical and digital forms^{. (...)}