ECB Calls for Crisis Cash Plan After Major Blackouts

- The European Central Bank (ECB) advises banks to ensure cash accessibility during emergencies. - Recent blackouts in Spain and Portugal highlight vulnerabilities in digital payment systems. The European Central Bank (ECB) has urged banks and lenders to guarantee access to physical cash during emergencies like power outages or technological failures. The ECB published this directive on September 24, 2025, underscoring the critical role of cash in maintaining systemic resilience during crises. This call to action follows escalating consumer concerns over inflation and predictions of slower economic growth in the region, driven by heightened trade tariffs. On September 24, Cryptopolitan reported that the ECB released a paper titled "Keep calm and carry cash: lessons on the unique role of physical currency across four crises." Authored by ECB economists Francesca Faella and Alejandro Zamora-Pérez, the report analyzed spikes in cash demand during emergencies, including the COVID-19 lockdowns and a recent ten-hour power outage in Spain and Portugal. The blackout, which occurred in April 2025, disrupted telecommunications and essential services, highlighting the necessity of cash for accessing vital goods like food, fuel, and medicine when digital payment systems fail. The ECB’s findings advocate for households to retain a cash reserve of €70 to €100 per person, which would cover basic expenses for three days if digital systems are not functional. Several European nations have taken proactive steps to preserve cash availability. Finland, for instance, is trialing "disruption-proof" ATMs designed to ensure withdrawal capabilities during technological disruptions, while Austria and the Netherlands are also testing similar measures. These recommendations come as Europe moves toward a digital euro, which the ECB acknowledges will coexist with a decline in ATMs and bank branches. While developing this central bank digital currency, the ECB remains steadfast, emphasizing that physical cash is a crucial safeguard for economic stability in times of crisis. This effort to bolster cash infrastructure coincides with growing apprehension over the economic impact of higher trade tariffs. According to the ECB's June 2025 Consumer Expectations Survey, 40% of Europeans believe tariffs will exacerbate inflation, and 24% anticipate slower economic growth. In response, consumers have adjusted their spending habits; for example, 26% are avoiding U.S. products, and 16% are cutting back on non-essential expenses like travel and electronics. The April 2025 blackout in Spain and Portugal served as a stark reminder of the risks tied to overreliance on digital systems. During the ten-hour outage, many people found themselves unable to make payments, an event that reinforces the importance of maintaining access to cash for emergencies.