A popular expression from Europe’s largest economy is Nur Bares ist Wahres: only cash is true. News and analysis site Foreign Policy recently explored Germany’s appreciation of physical money and the benefits it brings to a diversifying payments landscape.
Columnist Anchal Vohra highlights privacy and financial control as key advantages offered by cash. While the referenced ‘financial crises depleting bank balances overnight’ are far from recent history, the present economic struggles felt worldwide are driving people in many nations to take control of their finances with cash, and Germans are well ahead of the trend.
Speaking to natives in Weimar, Vohra heard ‘spending in cash encourages them to spend less and stay in control of their expenses’, while also protecting personal information. They pointed out that ‘if you use a card, the bank knows everything about you.’
Agnieszka Gehringer, a professor of economics at Cologne University of Applied Sciences, says there is a cultural appreciation for the safety and security of cash in Germany. She also notes that, while the payments landscape is changing and incorporating ever-more cashless options, Germans may not feel motivated to change spending habits that work well for them.
