While Nordic countries are backtracking on going cash-free, France's justice minister has suggested eliminating cash in order to fight crime. But even as French consumers increasingly turn to card payments, not everyone is ready to forgo cash altogether.
Cash plays a central role in the illicit drug trade and in financial crimes, French Justice Minister Gérald Darmanin told a Senate commission last month.
"A large part of fraud, everyday delinquency, and even criminal networks are linked to cash," he said, suggesting that between €4-6 billion a year is involved in illicit drug trafficking.
"One solution could be a drastic reduction – or even the elimination – of cash, to allow for better traceability," he said, while acknowledging that eliminating cash would not end drug dealing entirely.
"There will always be drugs and drug deliveries, but once money becomes traceable it becomes more difficult for both the consumer and dealer to bypass financial oversight."
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Card payments on the rise
France has already begun moving away from cash. Last year for the first time card payments in France overtook cash transactions, according to the Banque de France, which referred to a report by the European Central Bank.
Card and mobile payments now make up 52 percent of transactions, compared to 43 percent for cash, with the rest via cheque or bank transfers.
France has capped cash payments at €1,000 since 2022, with some exceptions, and an EU-wide limit of €10,000 is due to be introduced in 2027.
And yet, a majority of French consumers want to retain the option to pay in cash.
A Banque de France study found that 60 percent of respondents considered it important or very important to keep access to cash for privacy reasons, or to have more control over their spending.
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Nordic U-turn
However, as France considers going cash-less, Nordic countries are rethinking their moves in this direction, in the face of national security concerns.
In Sweden, where only one in 10 purchases are made using cash, the country's central bank warned in March that its dependence on electronic banking leaves it vulnerable to cyber attacks and power outages, like those seen in Spain and Portugal in April.
The Riksbank has proposed that stores selling essential goods be required to accept cash – current law allows businesses to refuse it. Norway has also revised its laws, now requiring all businesses to accept cash as a form of payment.
