Some 76% of all transactions in the euro area are carried out in cash, amounting to more than half of the total value of all payments.3 The demand for cash in the euro area currently outstrips the rate of nominal GDP growth. In crisis times, the demand for cash surges even higher.
At mid-March this year, the weekly increase in the value of banknotes in circulation almost reached the historical peak of € billion.4 The ECB’s debate on CBDCs is therefore mainly analytical. Whether and when it becomes more of a policy debate will largely depend on the preferences of households.