Despite the widespread use of contactless payments and smartphones across Europe, people are keeping more physical cash. The value of euro banknotes in circulation has increased sharply in recent years, as fears over war, cyber-attacks and other emergencies grow.
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According to European Central Bank (ECB) data, as reported by The Guardian, the total value of euro banknotes in circulation increased from about €1 trillion in 2016 to €1.6 trillion in June 2026. The number of notes has also increased, with more than 31 billion banknotes now in circulation.
The increase comes at a time when cash is used less often for everyday purchases in many European cities. Contactless cards, mobile phones and other digital payment methods have become common. However, people are now keeping cash because they are worried about situations in which digital payment systems may not work.
Those concerns include wars, wildfires, floods, storms and cyber-attacks. In such situations, people may not be able to depend on online banking, mobile apps or contactless payment systems. Cash, therefore, can provide a way to pay for basic items when digital systems are unavailable.
Why Europeans are keeping cash
The ECB's chief economist, Philip Lane, pointed to the difference between how often cash is used for transactions and how much cash people are holding.
“The total stock of banknotes is continuing to grow. In transactions, the number of notes is coming down, but in terms of the stock, it is increasing,” Lane said, as quoted by The Guradian.
This means that even though people may be using fewer banknotes when buying things, the overall amount of physical money being held is rising.
The increase has been linked to growing concerns about emergencies. In 2025, people in the European Union were advised to keep enough food, water and other essentials at home to last for 72 hours in case of an emergency.
The advice covered possible situations such as wildfires, floods and storms, as well as cyber-attacks and other hostile events. A suggested crisis pack included bottled water, a transistor radio, canned food and cash.
A major cyber-attack in the UK last year showed how such disruption can affect businesses.
More notes, fewer transactions
ECB data has tracked euro banknotes in circulation since 2002. The value of those banknotes has risen from around €1 trillion in 2016 to €1.6 trillion in June 2026. More than 31 billion banknotes are currently in circulation, compared with 24 billion before the pandemic in 2019.
