One of the best-known names in Spanish diplomacy has urged people to keep cash on hand to help deal with emergencies such as the massive power outage that brought chaos to Spain at the end of last month.
Javier Rupérez, Spain’s former Ambassador to the United States and NATO, as well as a respected member of Parliament, has visited the Canaries this week to take part in a prestigious economic forum which discussed the importance of cash at a time when coins and notes are losing their place in today’s increasingly cashless society.
According to Rupérez, who is currently president of the Denaria Platform which advocates the preservation of cash as a form of payment, the nationwide blackout on 28 April was a clear reminder that countries cannot depend solely on electronic forms of payment. On that day, millions of people across Spain were unable to use contactless cards or arrange payments via online banking.
Denaria argues that cash is a right for all individuals and a ‘symbol of freedom’ as it guarantees privacy from organisations or corporations that seek to access our personal information. Cash is also the only payment option in cases of natural disasters, cyber attacks and other technological mishaps, as well as a secure value in the face of scams or cybercrimes.
In media interviews given before his much-publicised talk at Thursday’s forum event in Las Palmas, Rupérez recalled that 60% of people in Spain say they use cash on a daily basis and 70% state that, even if they do not use it, they want it to continue to exist as a form of payment.
The former diplomat encouraged households to keep at least 200 euros in cash per person to guarantee the ability to buy essentials in the event of emergencies such as power or communications outages.
The debate on the merits of a cashless society has heated up in recent months with the anti-fraud measures adopted by Spain’s Inland Revenue, which has outlawed cash payments above certain amounts in order to increase the traceability of transactions. According to Rupérez, much more fraud is committed in electronic transactions than with cash payments. “Interestingly, immediately after the blackout on 28 April, withdrawals from cash machines increased by 38%, which shows that people realise the need to have cash handy” he added.
