Study says cash in Germany is worth EUR 54 billion

An independent study has found that cash generates societal value in Germany worth almost three times the cost of maintaining the cash system. It estimated the overall value of cash at about EUR 54 billion.

The study put the cost of providing and maintaining cash infrastructure at roughly 0.45% of Germany's GDP, while estimating the benefits at around 1.2%. It was led by Prof. Dr. Julia Pitters of IU International University of Applied Sciences and Prof. Dr. Franz Seitz of Weiden Technical University of Applied Sciences. The research drew on a representative online survey of 2,006 people in Germany aged 16 and older, as well as stakeholder interviews and macroeconomic data.

The analysis sought to assign a monetary value to functions often discussed more broadly in debates over the future of payments. These included resilience during outages or cyberattacks, privacy, financial inclusion, competition in the payments market, personal budgeting, and the role of cash in local commerce.

Resilience value

A large share of the estimated value came from cash's role during disruption. Based on respondents' views of the level of emergency cash reserves they considered appropriate, the study valued cash's resilience function at around 0.44% of GDP, or close to EUR 19.5 billion.

The finding reflects concerns about the vulnerability of payment systems during power cuts, cyber incidents, and other interruptions. The study described cash as the most resilient and sovereign payment method in such situations.

Privacy also featured prominently. Half of respondents said they would be willing to pay at least EUR 0.20 per transaction to ensure data from a digital payment was either not stored or deleted immediately. That implies a nationwide privacy value of more than EUR 3 billion, or 0.075% of GDP.

Local spending

The researchers also examined how consumer behaviour might change if cash were no longer available. Nearly three in 10 respondents said they would donate less, while one quarter said they would leave fewer tips.

Respondents also expected lower spending at weekly markets, local festivals, small service providers, and other community-based transactions. The study said this pointed to a wider economic role for cash beyond its use at the till, particularly in local and informal settings where small payments remain common.

Other areas included in the valuation were financial inclusion, consumer control over spending, and the benefits of retaining choice in the payments system. The report argued that cash and digital methods serve different functions and should be viewed as complementary rather than direct substitutes.

This framing is likely to feed into broader policy discussions about access to cash and the design of payment systems, especially as digital transactions continue to rise across Europe. By attempting to assign monetary values to non-transactional benefits, the study adds an economic lens to issues often treated as social or political questions.

"For decades, discussions about cash have focused on its costs because many of its broader benefits were difficult to measure. Our research shows that cash creates substantial and measurable value through resilience, privacy, inclusion, and local economic activity. Even using a conservative methodology, the societal benefits significantly outweigh the costs," said Prof. Dr. Julia Pitters, Professor of Business Psychology at IU International University of Applied Sciences.

The work was also presented as an attempt to give policymakers a framework for comparing the costs of cash infrastructure with wider public benefits. The study covered five dimensions: national security and systemic resilience, freedom and privacy, inclusion and universal access, financial control and personal discipline, and competition and independence.

"This study provides the missing information for evaluating the role of cash in modern societies. For the first time, policymakers can assess both the costs and the benefits of cash using a consistent framework," said Maroević.

The research was backed by the International Currency Association, the industry body for the global currency sector. Giesecke+Devrient, the Munich-based security technology company with currency operations, also supported the association's work on what it described as a globally comparable framework for public currency.

"The future of currency should be shaped by evidence, not assumptions. This study provides central banks and regulators with the data they need to assess the broader value of cash and make informed decisions about forecasting, investment, and resilient payment infrastructure. That is why G+D supports the ICA's efforts to establish a globally comparable framework for the future of public currency," said Dr. Wolfram Seidemann, Chief Executive Officer of G+D Currency Technology.