Past and future development of euro cash in Austria – resilience in light of technological change and economic crises

Anton Schautzer () and Helmut Stix
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Anton Schautzer: Oesterreichische Nationalbank

Monetary Policy & the Economy, 2022, issue Q1-Q2/22, 21-46

Abstract: In this analysis, we discuss how the demand for and the use of cash has changed in Austria since euro banknotes and coins were introduced in January 2002. Cash use for payments has decreased over the past 20 years, which is not surprising given the enormous technological advances. Despite this decline, cash remains the prevalent means of payment at the point of sale (POS) in Austria. Somewhat contrary to the downward trend in the use of cash for payments, the overall circulation of euro cash has increased over the past 20 years. In international comparison, Austrians are among the more cash-affine Europeans; however, there are several other European countries with comparable levels of cash use. We examine how cash use has developed among different sociodemographic groups and how Austrians view cash and noncash payment means. With regard to the likely development in the near future, we discuss the critical factors which will contribute to a reduction of cash use and those which will contribute to maintaining a strong role of cash. We argue that cash has important features that are of value for society, such that it should be in the public’s interest to safeguard cash as a key means of payment. This requires maintaining adequate access to cash for consumers and to cash deposit facilities for merchants. Also, paying in cash at any POS should remain possible, and measures should be taken to ensure cost efficiency along the supply chain of cash.

Keywords: cash demand; euro currency in circulation; hoarding; payments; financial innovation (search for similar items in EconPapers)
JEL-codes: D10 E41 E50 G11 (search for similar items in EconPapers)
Date: 2022
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