France to Keep Cash Alive Despite Digital Boom

As digital payments reshape daily life in France, the country’s central bank is standing firm: cash isn’t going anywhere. The Governor of the Bank of France, François Villeroy de Galhau, recently reaffirmed that “cash will never be abandoned,” stressing that access to notes and coins remains a fundamental right for all citizens.

A Promise to Protect Access to Cash

Speaking before the French National Assembly’s finance committee, Villeroy de Galhau made it clear that physical money will continue to play a crucial role — both socially and economically.

“Access to cash is a central right of our fellow citizens,” he said, addressing lawmakers’ concerns about the gradual disappearance of ATMs and bank branches in rural areas.

He also revised down the inflation forecast for 2026 to just over 1%, signalling cautious optimism after several volatile years. The lower inflation outlook, he added, was “broadly good news for purchasing power and competitiveness.”

Fewer ATMs, Fewer Withdrawals — But Higher Sums

Despite reassurances, cash usage continues to decline.
According to the Bank of France:

Over 1.1 billion withdrawals were made in 2024 — down 4.3% from the previous year.
The number of cash machines fell by 1,500 in the same period, leaving 42,578 ATMs nationwide.
In just six years, France has lost nearly one in five ATMs.
Meanwhile, the average withdrawal amount rose from €82 a decade ago to €126 in 2024 — showing people withdraw less often but in larger sums.

The shrinking ATM network has raised concerns, particularly for residents in small towns and rural communities who rely heavily on cash.

Card Payments Overtake Cash for the First Time

In 2024, card payments officially surpassed cash in France’s local shops for the first time. The European Central Bank’s survey revealed:

48% of in-store transactions were paid by card, compared with 43% in cash.
Yet, 60% of consumers still said it’s important to keep paying in cash — especially for privacy and budgeting reasons.

The trend reflects a wider shift across Europe, where contactless payments and mobile wallets have surged since the COVID-19 pandemic.

A Debate About the Future of Money

The question of whether cash could — or should — disappear has sparked political debate. In 2025, then-Minister of Justice Gérald Darmanin suggested that moving “beyond cash” might combat organised crime and drug trafficking. But government officials later confirmed that ending cash use entirely is not on the agenda.

France is also closely watching the progress of the Digital Euro project, currently being tested by the European Central Bank — but both institutions stress it would complement, not replace, physical money.

A Farewell with Legacy

Villeroy de Galhau, who will step down in June 2026 to lead the Apprentis d’Auteuil Foundation, used his upcoming departure to reaffirm a core principle:

“As the financial world becomes digital, we must ensure that no one is left behind.”

His departure marks the end of an era for the Banque de France, with his tenure defined by stability during uncertain times — from the COVID crisis to the digital transition of European finance.