A new study from the European Central Bank is highlighting the importance of keeping cash at home, arguing that physical currency is a vital safeguard during emergencies such as pandemics, wars, and infrastructure breakdowns. The research, published Wednesday under the title Keep Calm and Carry Cash, analyzed consumer behavior during recent crises in Europe, including COVID-19 and Russia’s invasion of Ukraine in 2022, and found that demand for banknotes surged in every case.
Authorities across Europe are increasingly urging citizens to maintain a reserve of cash to cover basic needs when digital payment systems fail. In the Netherlands, Austria, and Finland, official recommendations suggest keeping between €70 (about $82 US) and €100 (about $117 US) per person at home, enough for roughly 72 hours of essential expenses. Sweden advises households to calculate the cost of at least a week’s worth of food, medicine, and fuel, keeping that amount in small denominations to use for trading if electronic transactions are disrupted.
The study emphasizes that banknotes provide both psychological reassurance and practical utility. Cash is viewed as a reliable store of value and a resilient backup to digital systems. Researchers compared cash to a “spare tire” in the payment system, offering redundancy that becomes indispensable in times of crisis. During the pandemic, uncertainty around income stability led to long periods of cash hoarding, while Russia’s full-scale invasion of Ukraine triggered sharp increases in withdrawals in neighboring countries.
Governments have responded by reinforcing preparedness measures. The European Commission issued new guidance earlier this year recommending that EU citizens stockpile food and other supplies sufficient for at least 72 hours. Similarly, Sweden and Finland updated their survival handbooks, which now include advice on maintaining cash reserves alongside guidance on power outages, communication failures, and food security.
With geopolitical tensions, cyber threats, and extreme weather events creating a more fragile security environment, experts warn that relying solely on digital payments leaves households vulnerable. Keeping a modest amount of cash at home, they say, can make a critical difference in ensuring access to essentials when systems break down.
