Anxiety over war, wildfires and cyber-attacks leads to growth in cash stocks in EU

Value of banknotes in circulation rises from €1bn in 2016 to €1.6bn in 2026 as people advised to keep stash of cash

The number of banknotes in circulation in the EU is increasing despite widespread smartphone payments, new data shows, with wildfires ripping through parts of Europe fuelling demand for an emergency stash of cash.

While cash plays second fiddle to contactless payments in many cities across Europe, the amount in circulation is actually going up, Philip Lane, the chief economist of the European Central Bank (ECB), said at the MacGill summer school conference in Ireland.