Transactions: Is Luxembourg ready to live without cash?

The Nordic countries are the most ready for a future without cash, according to a study by Finansplassen, a Norwegian financial information site, spotted by our colleagues atEuronews. The site compiled several data to establish a ranking, such as the number of automatic teller machines (ATMs) and payment terminals per 100,000 adults or the percentage of residents who carry out online banking transactions. And in this little game, it is Norway, Finland and Denmark who monopolize the podium, ahead of the Netherlands, Sweden, Iceland, Estonia, Lithuania, Cyprus and Switzerland.

Luxembourg ranks 15th, just ahead of Belgium (16th). France is in 19th place ahead of Italy, while Germany is at the bottom of the ranking, in 43rd place, and only ahead of Georgia and Armenia, dead last.

If the Grand Duchy is close to a hundred ATMs per 100,000 adults (compared to 27 in Norway), it is also the European country with the most payment terminals: 31,113 per 100,000 adults (compared to 3,587 in Norway). Note that 71% of residents indicate that they carry out online banking transactions compared to more than 96% of Norwegians and Danes, champions in this area.

That the Nordic countries are less dependent on cash can be explained quite simply by their geography: the low population density and the often extreme weather conditions push them to innovate, indicates Olle Pettersson, personal finance expert at Finansplassen, cited by Euronews. These countries do not have large populations, which also makes it easier to test new policies, knowing that these countries also have great confidence in public institutions.

If these countries rushed towards digital systems, encouraged by politicians, the latter, today, would tend to put the kibosh on it. Emilie Enger Mehl, Norwegian Minister of Justice and Emergency Situations, encouraged everyone to keep some cash: “The world around us is increasingly troubled by war, digital threats and climate change,” she said as Parliament changed the law to make it easier for Norwegians to pay with cash again. “We must prepare for long-term power outages, system outages or digital attacks that cause digital payment solutions to fail.”

Note that today, Luxembourg is one of the only EU countries that does not set any limits for paying in cash (along with Austria, the Netherlands and Cyprus). From 2027, this rule will change in the 27 EU countries: cash transactions between an individual and a company will be limited to 10,000 euros.

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