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ECB Invokes Banknote Paradox to Explain Cash in Contactless Age

Euro coins and banknotes.

Photographer: Alessia Pierdomenico/Bloomberg

Cash is alive and thriving in the euro zone despite the rise of debit cards and contactless payment, and the pandemic has even accelerated that trend, according to the European Central Bank.

While notes and coins account for a shrinking share of daily transactions in the currency bloc, the value of cash in circulation almost doubled in the last decade, the ECB said in its economic bulletin.