In a world increasingly dependent on technology, physical money continues to be an essential element of security in times of crisis. The Bank of Portugal (BdP) warns that computer failures or energy blackouts can paralyze digital payments, reminding us of the importance of keeping some cash at home for unforeseen situations.
The alert comes after the blackout on April 28, which left most ATMs inoperative. Since then, Banco de Portugal has joined other European central banks in recommending that each citizen have small reserves of physical money, as a way of guaranteeing financial autonomy during emergencies. Although there is no fixed amount determined, several authorities indicate an amount of 70 euros per adult and 30 euros per child.
Role of money in times of crisis
According to the Boletim Notas e Moedas, published by the BdP at the end of October, there was a significant increase in operations and amounts raised after the blackout. The document states that “many consumers will have carried out extraordinary withdrawals, partly to compensate for those left unmade on the day of the blackout, but also as a precaution”.
The supervisor emphasizes that “a sudden event, like the one that occurred, reveals that cash continues to be indispensable”. For BdP, “physical money is not just a means of payment: it is also a strategic resource for operational continuity, functioning as a safety net that ensures that the economy continues even when technology fails.”
For this reason, the BdP considers it “essential to preserve a capillary network of cash access points, distributed in a balanced way across the territory” and recommends that “citizens keep some physical money available” to cover basic needs in the event of a failure in electronic systems.
The value recommended by central banks
The European Central Bank (ECB) also shares the same concern. In a study entitled “Keep calm and carry cash”, the ECB highlights that the usefulness of cash “intensifies when stability is threatened”. The document reinforces that “central banks, finance ministries and civil protection agencies in several countries now recommend that families keep money available for several days of essential purchases”.
In the Netherlands, Austria and Finland, authorities advise keeping reserves of between 70 and 100 euros per family member, enough to cover basic expenses for 72 hours, that is, three days.
Example from the Netherlands
De Nederlandsche Bank, the Dutch central bank, is one of those that has defined concrete guidelines. According to the institution, each adult must save 70 euros and each child 30 euros, values that form part of a true “financial emergency kit”. This reserve should allow the acquisition of food, medicine or fuel in situations of prolonged failure of digital systems.
The ECB also highlights that trust in physical money is a factor of social stability, especially in times of economic crisis, natural disasters or energy failures. In addition to guaranteeing immediate autonomy, cash continues to be the only means of payment that works without a network, without energy and without intermediaries.
Importance of maintaining the habit
The conclusion is that modern society should not abandon the use of ‘hard’ money. Although digital payments continue to grow, having some physical cash at home remains a measure of prudence and security, ensuring that each citizen can face unforeseen events, even when technology fails.
In times of digital dependence and technological vulnerability, 70 euros per adult and 30 euros per child can make all the difference in ensuring peace of mind in the first hours of a crisis.
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