Overview

• The Bundesbank has reaffirmed its commitment to preserving cash, citing its societal value and public support, with 72% of Germans deeming it important for society.
• Cash usage in Germany has declined sharply, from 75% of transactions in 2017 to under 50% in 2023, driven by increased adoption of digital payment methods.
• Projections released in April 2025 warn that cash availability and acceptance could be severely restricted by 2037 if current trends continue unchecked.
• The Bundesbank has launched initiatives, including modernizing its branch network and convening the Nationales Bargeldforum, to address these challenges and promote cash usability.
• Key risks include a self-reinforcing decline where reduced demand leads to fewer ATMs and merchant acceptance, further diminishing cash usage.