Austria is going cashless: reasons and possibilities

Karl Nehammer, the Austrian chancellor, has announced plans to enshrine the right to cash in the country’s constitution as contactless payments increasingly displace “traditional” money.

Nehammer proposed the amendment after the Freedom Party of Austria, a far-right party currently gaining popularity in opinion polls, accused the current government of plotting to ban cash by making electronic payments yet another means of spying on its citizens. The chancellor is the leader of the conservative Austrian People’s Party, which governs in coalition with the left-wing Green Party.

“In Austria alone, €47 billion is withdrawn from ATMs every year, and on average, every Austrian carries €102 in cash,” Nehammer wrote on Twitter.

That’s why I… want cash to be protected as a means of payment in the constitution.

The right to cash would guarantee the use of paper money as a means of payment and would also require the Austrian Central Bank to provide a basic supply of paper currency. Nehammer tasked Finance Minister Magnus Brunner with leading the effort, in cooperation with other government ministries and the private sector.

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