In recent years, the topic of cash has increasingly been appearing in public debate, becoming a source of numerous controversies. Discussions revolve around the limitations and the possible complete elimination from the circulation. These ideas might appear surprising, as Poles still continue to trust physical money. This is demonstrated not only by voices of protest, but also by this year’s Tavex survey. A whopping 25% of Poles prefer to pay in cash, with another 25% combining traditional and modern transaction methods. Meanwhile, the European Union decided to implement new regulations, which could make buying a car or paying for vacation in cash impossible within the next three years. Are we ready to give up the freedom that cash provides us? And is it really that important?
What’s all this fuss about?
Firstly, it’s worth asking: where did all the interest in cash come from, and why does it evoke such extreme emotions?
For many Poles, cash is a symbol of independence and control over their finances. It enables anonymous purchases and security in crisis situations when digital systems may fail. Meanwhile, the debate about its future is heating up not only in Poland but also across Europe. Increasingly, there are calls to limit cash payments – from implementing thresholds to completely eliminating physical money from circulation.
It is important to note that since 2021, there has been a statutory obligation for universal acceptance of cash in Poland. Previously, the law did not stipulate an unconditional obligation to accept cash payments by entities conducting business activities on the territory of the Republic of Poland. Moreover, the country already has detailed provisions regarding the recording and registration of transactions above a certain amount. This limit is 15 thousand euros.
Despite these regulations, we may encounter situations when cash payment is denied. Recently, a particular municipality’s idea to abandon cash payments for recharging commuter cards did not meet with enthusiasm – points out Alexander Pawlak, CEO of Tavex. The question is, why are we so keen to get rid of cash? Access to it is absolutely a fundamental alternative, and above all, a competitive payment solution – he emphasizes.
In the face of the European Union’s proposal to introduce cash payment limits, Poles clearly state their position. A total of 49% of respondents do not support the planned European cash payment limits – according to the Tavex survey.
Cash Freedom
Moreover, society consistently recognizes how important cash is for the country. Even before the introduction of new regulations on cash payment limits, when Poles were asked whether the abolition of cash was a good idea, a staggering 98% of respondents said it was harmful for the economy and consumer safety – as per a Tavex survey.
The National Bank of Poland’s latest report on cash turnover in Poland in 2023 confirms this finding. The report mentions: “Cash is more than just a means of payment. Four in ten respondents confirmed that they are emotionally connected with Polish banknotes (43.0%), and every other respondent recognises the Polish banknote as a national symbol (55.8%)..”
Cash Payment Limits – What Does It Mean for Consumers?
Recent proposals to introduce cash payment limits have sparked heated debate both in Poland and internationally.
Opponents see this as an attempt to infringe citizens’ freedoms.
An excessive restriction of cash circulation poses a serious threat to Poland’s security, not only in economic terms. Cyber attacks on digital payment and communication systems can occur at any moment on a small or large scale, and can take various forms – indicates Aleksander Pawlak, CEO of Tavex. In the process of implementing cash regulations, we must remember the trust that citizens place in the entire financial system. Gradual elimination of physical payment methods can eventually limit the development of cashless payments and generate numerous challenges in the area of making transactions. It is important for the market to provide consumers with a choice in how they want to make payments – he concludes.
Source: https://managerplus.pl/gotowka-albo-sie-kocha-albo-nienawidzi-czy-jestesmy-gotowi-na-rezygnacje-z-fizycznego-pieniadza-28905
