Piero Cipollone: The future of euro cash: trusted today, designed for tomorrow

Keynote speech by Piero Cipollone, Member of the Executive Board of the ECB, at the House of the Euro

Today, we are discussing the future of euro cash – the most tangible symbol of our common currency, and one that remains firmly rooted in the daily lives of Europeans.[1]

Euro banknotes are more than a means of payment. They are something Europeans share, an expression of our common European identity.

25 years ago, Europe embarked on a historic currency changeover. On 1 January 2002, 308 million citizens welcomed euro cash. Within just two months, more than 7 billion banknotes and 36 billion coins replaced 12 national currencies.

Euro cash became one of the most visible achievements of European integration. And with Bulgaria joining the euro area earlier this year, the euro now unites 21 countries and more than 358 million citizens.

25 years on from the initial changeover, Europe is once again shaping the future of its common currency. Not out of nostalgia for the past, but because euro cash is still an indispensable part of Europe’s monetary future.

In my remarks today, I would like to explain why safeguarding the role of cash matters and what we are doing to make euro banknotes fit for the future.

Protecting cash: a shared responsibility

Cash is not simply a legacy of the past. It is part of daily life for millions of Europeans.

Every day, people use cash for millions of payments, particularly smaller ones, and hold banknotes as a trusted store of value – both in Europe and globally.[2] More than 31 billion euro banknotes, worth over €1.6 trillion, are in circulation, with an annual growth of around 3%. There are also more than 150 billion euro coins in circulation.[3]

So, even in an increasingly digital age, demand for cash remains remarkably strong.[4] Recent crises have made this particularly clear. They have shown that when uncertainty rises, people want to hold even more cash.[5]