It is the first suggestion of its kind in an official document: “Cash remains indispensable”. The blackout is still in memory.
The recommendation had already been given by the European Central Bank, just over a month ago: It’s better to have between 70 and 100 euros at home.
“Keep Calm and Carry Cash: Lessons on the Unique Role of Physical Money in Four Crises”, is the name of the , with references to the 2008 global crisis, the situation in Greece in 2014/15, COVID-19 and the war in Ukraine.
At each of these moments, there were “immediate and extreme increases in the public’s acquisition of cash.” Therefore, it is better to have extra at home, in case electronic payment systems fail.
Europeans – and not only – are used to paying by card or via mobile applications. If technology fails, cash becomes essential again.
Now, it’s the Bank of Portugal to leave a very similar recommendation, although it does not mention values.
He highlights that this is the first time that the Portuguese central bank indicates, in an official document, that it is prudent to “keep some physical cash available”.
The is still in memory. An assessment was made of the constraints generated by the blackout. Paying with cards and withdrawing money at the ATM were two of the many difficulties on that famous April 28th.
And when you tried to pay with cash…people often didn’t have enough.
“A sudden event, such as the one that occurred, reveals that cash remains essential. Physical money is not just a means of payment: it is also a strategic resource for operational continuity”, reads the .
Banco de Portugal argues that cash “functions as a safety net, ensuring that the economy continues even when technology fails”.
Hence the recommendation: “It remains prudent for citizens to keep some physical cash available”.
In relation to values: each person or each family must define, summarized a source from the bank, in the Público newspaper.
