{"text":[[{"start":8.7,"text":"EU households should keep emergency cash at home, a European Central Bank study has suggested, arguing that banknotes remain a vital safeguard when digital systems fail."}],[{"start":21.53,"text":"The ECB paper published on Wednesday raises the case for more national governments to consider introducing guidance similar to the Netherlands, Austria and Finland, which advise households to hoard between €70 and €100 per person."}],[{"start":38.33,"text":"The study follows the European Commission’s call this year for citizens to stockpile sufficient cash, food, water and medicine to survive 72 hours of disrupted services. The war in Ukraine, the Covid-19 pandemic and natural disasters such as wildfires and floods have exposed Europe’s vulnerabilities and triggered an increase in spending on security and defence."}],[{"start":66.57,"text":"“Cash is a critical component of national crisis preparedness,” ECB staff wrote in the paper, noting that physical currency “not only serves to meet individual needs but also contributes to broader systemic resilience”."}],[{"start":82.00999999999999,"text":"Although the study does not stipulate a minimum level of money that households should hoard, its publication comes amid a broader debate in Europe on the future of cash."}],[{"start":92.79999999999998,"text":"While digital payments dominate retail transactions and banks trim costs by closing branches and cash machines, policymakers are under pressure to ensure households retain access to notes and coins."}],[{"start":108.12999999999998,"text":"The ECB paper highlights a paradox. While cash is increasingly absent from daily payments, its demand surges when trust in financial or digital systems falters. That pattern was evident during the pandemic and other events such as the power blackout that paralysed Spain and Portugal this year."}],[{"start":132.20999999999998,"text":"In the case of the pandemic, cash holdings rose by €140bn in two years, compared with a pre-crisis annual increase of €55bn, the ECB said. The surge came even as consumers switched to contactless cards and online shopping, driven by health concerns and lockdowns."}],[{"start":155.03999999999996,"text":"During the Iberian outage in April, when power and telecommunications collapsed across most of the peninsula, card terminals, online banking and ATMs were inoperable. For those who had it, cash very often became the only functioning means of payment. Once services were restored, withdrawals surged as people replenished their household reserves."}],[{"start":178.07999999999996,"text":"The ECB likens banknotes to a “spare tyre” for the payment system: not needed every day, but essential when other infrastructure fails."}],[{"start":188.65999999999997,"text":"Like Dutch flood defences, the report argues, cash systems must be built to withstand rare but extreme shocks. “Infrastructure and strategic reserves must be prepared for these less predictable, high-impact surges,” it said."}],[{"start":206.65999999999997,"text":"Some countries are adapting their infrastructure accordingly. Finland is working on “disruption-proof” ATMs designed to dispense cash even if a bank’s core systems are down."}],[{"start":217.44999999999996,"text":"In Austria, where commercial lenders have reduced their ATM networks in rural areas, there are plans for the country’s central bank to install its own machines in municipalities left without reliable access."}],[{"start":239.07999999999996,"text":""}]],"url":"https://audio.ftmailbox.cn/album/a_1758753745_2501.mp3"}