Cash, the alternative in emergencies such as the recent blackout

Cash, the most common form of payment in Spain, becomes the alternative in emergency situations such as the massive power outage of April 28th, or in the event of a possible cyberattack or computer or network system outages that prevent card payments.

The latest data from the Bank of Spain confirms the increasingly evident trend of increasing use of digital payments and a decrease in the use of cash; however, cash remains the most common means of payment.

In Spain, in 2024, more than half of transactions in physical establishments were made in cash, 57%; furthermore, the Denaria platform reports that ATM withdrawals have returned to pre-pandemic levels.

Even so, according to the supervisor's data, nearly six out of ten consumers say their preferred payment method in physical stores is card, compared to 26% of consumers who prefer to pay in cash.

This explains why cash became a coveted commodity last Monday during the blackout, and the alternative when card payments were no longer possible because data terminals or point-of-sale (POS) terminals stopped working.

In a normal situation, the main advantages consumers associate with using cash are anonymity and privacy, but in emergencies, it becomes even more appreciated because it is positioned as the most viable payment option for purchasing basic products and services.

Millions of people were unable to make digital payments last Monday due to power and telecommunications grid outages, which affected point-of-sale terminals, mobile apps, and ATMs.

Purchases through electronic payment systems fell by 55% that day, which translates to €400 million, as announced by Economy Minister Carlos Cuerpo.

Although the power outage may seem like a one-time event, the truth is that, on previous occasions, electronic payments have also been affected for hours by internet or payment network outages, leaving only those with physical cash able to complete purchases.

Denaria, the platform that advocates for the use of cash, advises the public to always have a small cash reserve as a basic preventive measure.

At the same time, it urges the relevant authorities to ensure access to cash through a robust and distributed network of ATMs, with sufficient coverage for all citizens.

"The recent system crash has revealed, as we have been warning for years, that the digital world has obvious weaknesses," they argue.

Cash, they argue, is not a relic of the past, but a strategic necessity to guarantee the functioning of the economy and fundamental rights under all circumstances.

They also remember that the appearance of elevators did not mean the disappearance of stairs.

Denaria emphasizes that cash doesn't depend on batteries, mobile networks, or digital connections, and that it represents a key tool in emergency situations like the ones we've recently experienced.

Cash is essential for national security, and authorities should therefore guarantee and support the use of this citizen right.

Denaria also reminds us that the use of physical money is a citizen's right protected by current legislation, and that any measure that limits it, directly or indirectly, poses a risk to freedom of choice, financial privacy, and the resilience of the economic system.