The value of cash in circulation has increased significantly. Poles have withdrawn PLN 30 billion from ATMs

These are surprising figures. As many as 30 billion zlotys appeared in circulation in cash. And this during the first 3 months of this [...] https://www.pinterest.com/pin/1085437947660215829/

These are surprising figures. As much as 30 billion zlotys appeared in circulation in cash. And this during the first 3 months of this year! Poles took them out of banks in fear of blocking their funds on accounts? Cash flooded the market In December 2019, cash in circulation was about 238 billion zlotys: PLN 233 billion in banknotes and PLN 5 billion in coins. Now this value has increased to 269 billion zlotys. Thus, during the last quarter an additional PLN 30 billion appeared. Cash is coming in every quarter, but it's more a matter of 5-6 billion zlotys, not 30 as it was now. - I suspect that people were afraid of closing banks and suspending online financial operations - said prof. Marian Noga, economist and former member of the Monetary Policy Council, to money.pl. - Older people remember the martial law. Back then banks did not work and nobody had ever heard of online operations. So only cash counted - he added. Is it a bad idea? - I would like to remind you that clients' deposits are protected up to EUR 100 thousand. Even if a bank goes bankrupt or burns down, we will get the money back - explains Prof. Noga. The aforementioned 100 thousand euro is the limit for only one bank. So if someone has accounts in as many as three banks, they will recover 300 thousand euro from the Bank Guarantee Fund, experts say. So are Poles panicking unnecessarily? A little yes, but it also shows that today there is a growing number of people who no longer trust banks and are looking for alternatives to the current financial system - also in terms of storing money. This is an opportunity for cryptocurrencies. On the other hand, there are calls by the WHO not to use banknotes, because they increase the risk of coronavirus infection. Today, even in a considerable part of stores you can find announcements asking to pay with cards instead of banknotes and coins. This is only one step away from a complete ban on the use of cash! The 100,000 euro limit can be changed through legislation that can be easily passed by parliaments. In the background, central banks are conducting studies on CBDC... Tags Central bank cbdc cash