In the spring of 2025, a viral TikTok video falsely claimed France had outlawed cash in favour of a digital euro. While the rumour was quickly debunked, the public backlash underscored a growing global concern: the vital importance of physical cash in the digital financial world. This is a question that has been preoccupying central banks for years.
Indeed, digital payments may offer speed and convenience, fitting seamlessly into our modern lives where money is often just a number on a screen. Yet, physical cash retains a vital role. Its relevance is rooted in unique advantages that digital money still lacks. These are not merely matters of convenience but fundamental benefits—like guaranteed acceptance, financial privacy, and system resilience—that still prove indispensable in all corners of the world.
Why central banks are coming back to cash
Norway’s march toward a cashless society stalled in 2024 as its Parliament passed new rules requiring businesses to accept physical currency. This move came after a central bank survey revealed that while only 3% of Norwegians used cash for daily shopping, this was likely due to the widespread “cash not accepted” signs in stores, not consumer preference alone. To clarify the public’s right to pay with cash, the government and Norges Bank amended the Central Bank Act, guaranteeing it for transactions up to 20,000 kroner. “The regulations have been too unclear,” explained Minister of Justice Emilie Enger Mehl. “People should be confident that they will be able to pay when they go to the store.”
This case fits in the growing global movement to protect the right to use cash. From China, which now mandates that businesses accept cash to accommodate foreign tourists and investors, to the United Kingdom, which has framed cash access as a fundamental right for freedom and equality, nations are taking action. These efforts highlight a core duty of government: to maintain a secure and trustworthy monetary system for all citizens. This responsibility now extends beyond economic stability to safeguarding financial inclusion, data privacy, and consumer choice, as the new ‘Cash Law’ recently introduced in New York shows. The newly signed law forces merchants to accept cash payments, and the lawmakers say that their goal is “to restore fairness and ensure that every New Yorker, regardless of income, banking status, or technology access, can participate fully in the economy.” Ultimately, moves lie these ensure that cash remains a viable payment option protects a vital, resilient tool for everyone, especially when digital systems are compromised.
This political momentum is also reshaping the banknote industry. As Dr. Aleta Richards, President of Crane Currency, explains, “The industry is going through a period of significant consolidation and transformation… Central banks are coming back.” According to her, cash is enjoying a quiet renaissance driven by financial inclusion, privacy, and resilience in times of crisis. “Physical currency still matters,” she adds. “It provides choice, inclusion, and privacy — and its importance is not going away.”
A tool that simply works
Governments worldwide are investing in modernizing their banknotes, a clear signal of their commitment to keeping cash relevant. This goes beyond mere aesthetics; it involves advanced designs and new, durable materials. Each feature, from the distinct feel of the paper to the embedded security threads, is engineered with a purpose: to ensure cash remains a secure, reliable, and functional tool that upholds its essential roles in society.
A banknote must be a tool that simply works. Central banks insist that physical currency be secure, durable, and intuitive for everyone to use. This is not just a matter of convenience; it’s a matter of economic stability and public trust. The design is tied to its function: banknotes must be easy for all citizens—including the elderly and visually impaired—to authenticate. They must be tough enough to survive floods or conflict, and their security features must be verifiable in an instant, even in poor light or under stress.
Central banks are pursuing a dual strategy to strengthen the role of cash. Some efforts focus on design to make banknotes more inclusive and user-friendly. For example, the European Central Bank is developing its next generation of euro notes with the explicit goal of making them more relatable and accessible for all Europeans, including those with visual impairments. Simultaneously, other goals—like ensuring security and enabling instant authentication—are being met through advanced technological features embedded straight into the currency.
Designing cash for security and inclusion
Banknote security operates on multiple levels, with the primary one designed for the public. This first line of defence relies on intuitive features like a distinct texture, raised printing, colour-shifting ink, and holograms that let anyone—from a cashier to a customer—quickly verify authenticity. These technologies are in a constant arms race against counterfeiters. For instance, traditional watermarks have been a weakness; their often faint and blurry images can be crudely replicated, as seen in 2023 with a batch of fake $20 bills in U.S. Evansville that fooled people because the genuine watermark still lacks clear, defined lines.
In response, security feature developers have been working on a solution. In 2024, a breakthrough came from VHP Security Paper, a subsidiary of French printer Oberthur Fiduciaire, which unveiled HD Vision, a high-definition watermark with exceptional detail, contrast, and clarity. This proprietary technology is designed to be impossible to counterfeit, giving the public a clearer, brighter visual cue to instantly confirm a banknote’s authenticity. As Oberthur Fiduciaire’s CEO Thomas Savare notes, “We must innovate to ensure we stay one or several steps ahead of counterfeiters. Innovation is also necessary to differentiate ourselves from the competition and to guarantee the trust of central banks and the billions of users who handle banknotes every day.”
Beyond public-facing features, banknotes possess specialized tiers of security for expert authentication by banks and law enforcement, and other features aimed at particular applications. These require specialized tools and knowledge, such as using UV light to analyse advanced inks, as seen in the French printer’s Avalon, a next-generation ink that changes colour under friction—a behaviour that is impossible to replicate, or Bioguard, an anti-pathogen solution for banknotes designed to enhance public health management already in use on billions of banknotes. Developed entirely in-house under high security and strict patents, these sophisticated technologies form a final shield, securing the trust that central banks and millions of users place in physical cash.
Where resilient financial ecosystems start
Cash remains a vital, secure, and inclusive payment method, but this isn’t a call to abandon digital finance. The challenge is to prevent a lopsided system, as Norway’s experience shows. The solution lies in payment interchangeability—ensuring that cash, private digital platforms, and public digital currencies can all coexist and connect seamlessly. This approach prioritizes consumer freedom over being locked into a single system. A leading example is India, whose journey offers a powerful blueprint for balancing cash and digital payments.
A sudden 2016 demonetization drastically restricted cash usage in the country, eventually nudging the government to launch UPI, a public digital platform. While UPI now dominates, a key to its success has been its integration with cash, not its replacement of it. A feature called “UPI for Cash” allows users to generate a QR code on their phone to withdraw physical money from local corner stores, effectively turning them into micro-ATMs.
This hybrid model has proven immensely popular. In August 2025, UPI hit a record 20 billion monthly transactions. Yet, significantly, the amount of physical currency in circulation also continued to rise. This coexistence is crucial. Users report concerns with fintech, including technical glitches and poor customer service, demonstrating that digital systems are not yet flawless. For them, the guaranteed option to use cash provides a safety net, building public trust.
This experience shows that true payment freedom isn’t about choosing one system over another. It’s about creating interchangeability—allowing the security and universality of cash to coexist with the speed and convenience of digital money. When both are supported, they form a more resilient and inclusive financial network for everyone.
