Civil society to the Bundesbank: cash must be preserved as a matter of urgency

Over the past few months, the Deutsche Bundesbank has discussed the future of money with 27 associations and organizations from across society for the first time. The initial results have now been published in the form of three thematic papers. All participants, which the central bank divided into the categories "guardian organizations", social associations and "cash bastions", emphatically call for the preservation of cash. This is necessary for "fast and uncomplicated payments, as a corrective in payment transactions" and "for individual and social resilience", they say.

The watchdog group, which includes representatives from the Bundesbank itself as well as representatives from Digitalcourage, the European Academy for Freedom of Information and Data Protection (EAID), Politik Digital, the Data Protection Foundation and consumer advice centers, emphasizes: "Cash is the preferred means of payment for people who want to handle their own data with confidence. No other means of payment achieves an equally high level of data protection."

The level of data protection for non-cash means of payment, on the other hand, is "very different", the watchdog organizations point out. It depends, for example, on whether the private providers "pursue data-driven business models". Consumers will therefore continue to need reliable information about both the protection of their privacy and the costs of payment methods. However, this free choice is only possible "if data-saving means of payment such as cash are accepted across the board". The fact that goods and services can increasingly only be purchased after installing an app is therefore viewed critically.

Digital euro still a long way off

For a "hybrid payment reality", a form of digital cash that achieves the highest possible level of data protection comparable to analog cash and can be used anonymously is desirable, the experts explain. However, such a payment option suitable for everyday use is not yet available to consumers. The European Central Bank and the EU Commission are working on the introduction of a digital euro, which the Bundesbank supports. However, it is likely to be several years before it is actually implemented and available in everyday life.

According to the watchdog organizations, cash can also be used to maintain payment transactions in the short term if the functionality of non-cash means of payment is restricted, for example in the event of power outages, cyberattacks or software malfunctions. At the same time, cash should be made more attractive, for example by "dispensing with small coins and introducing rounding rules". Self-cashier systems with cash payment modules or cash-in and cash-out machines could also contribute to this.

From a data protection perspective, it is not only relevant "to remain anonymous when paying or to leave no (payment) traces", adds Kirsten Bock from the German Data Protection Foundation, co-author of the paper "Rather, the density of surveillance – from surfing the Internet to parking space surveillance in front of the supermarket to payment at the checkout – is problematic in its entirety." The ubiquitous sharing and analysis of data means that hardly a single step in life remains unobserved. However, the Federal Constitutional Court had already made it clear in its census ruling "that such a scenario is unacceptable".

Cash is vital for the homeless

The cash bastions, which include trade, showmen's and craftsmen's associations, emphasize this: Especially at weekly and fairground markets, at kiosks and on public transport, people often pay with bills and coins. Stores and providers that make this possible have access to a potentially larger customer base. People with criminal energy could use cash to avoid taxes or finance criminal activities. However, the digital payment world is also a popular target for fraudulent activities.

The social organizations argue that cash must be preserved as "an inclusive means of payment for all in a low-barrier, hybrid payment world". It is a "reliable means of controlling expenditure" and thus helps to avoid over-indebtedness. The German Social Welfare Association emphasizes that cash donations are essential for the survival of homeless people. Diakonie President Rüdiger Schuch points out that banks have a right to an account. However, many of the numerous new e-payment service providers do not automatically grant access to people living in poverty. According to the Bundesbank, a good half of all transactions in Germany in 2023 were processed using bills and coins. At the same time, cards and apps continued to spread.

(nie)