Cash is an essential payment mode despite digitization, says German Economy Minister

“Cash must remain an important means of payment,” Economy Minister Brigitte Zypries, a Social Democrat said today in a statement while the role of notes and coins were debated in Europe about the merits of limiting cash payments.

The European commission is debating stricter rules on the cash in an attempt to curb terrorist funding, and Germany’s finance ministry – led by conservative Wolfgang Schaeuble in a report by Reuters.

“Even in the era of digitisation, it is valid,” Zypries added, reinforcing a similar message from European Central Bank President Mario Draghi at the launch of a new 50 euro note on Tuesday. According to the report, Germans prefer using cash and such a move is deemed to cause a lot of discomfort.

The ECB’s decision last year to demonetise the 500 Euro note caused a lot of furore at German Central Bank on the grounds that the freedom to use cash was being curtailed.

The announcement is crucial to the ongoing debate around the world, of encouraging digital payment modes while subsequently putting an end to cash.