He “Study on habits of using cash 2023” of the Bank of Spain reveals that cash continues to be the most used by the majority of Spaniards, followed by cards and mobile devices. Despite the increase in the use of the latter, the preference for cash remains strong, with 70% of respondents predicting that its use will remain constant over the next year 2025. This trend is particularly notable in small businesses and in the hotel sector.
Citizens generally withdraw money mainly from ATMs, although a greater distance is perceived to these points compared to 2022, especially in rural areas without bank offices. As for companies, the majority carry out their collectionsand about half of them receive change from the daily collection. Although few of them offer a service cash pickup in storehalf of the establishments check the authenticity of ticketswith clear manual focus.
Bank of Spain opinion on currencies
The Bank of Spain has indicated that companies are not obliged to accept more than 50 coins in one payment. This measure aims to speed up transactions and avoid delays in customer service, especially in stores and banks.
The limit of 50 coins per transaction applies between individuals and businesses, with exception of “public funds” public sector entities. Banks can accept more than 50 coins because the situation is more flexible, but a receipt must be issued indicating the amount and a deadline for the payment to be effective after the statement.
Banks, even though they can receive large quantities of coins, must issue a receipt indicating quantity delivered and, if not currently counted, indicate that the credit is conditional on further counting. Sectors such as retail and hospitality, which deal with large volumes of coins, need special treasury services that banks often outsource.
Change of offices
The Bank of Spain authorizes exchange up to 1,000 coins in their officesprovided that they are organized by denomination, especially those over 50 cents. However, coins of lower value (1 to 20 centimes) can be deposited in automatic machines which count them.
Higher value coins, such as 1 and 2 euros or 50 centscan be delivered unorganized, provided they do not exceed 200 units. This service is free at the Madrid headquarters and in the 15 branches of the Bank of Spain. However, commercial banks may charge a fee for offering this service.
Cash payment limit
In Spain, regulations set a limit of 1,000 euros for cash payments, in accordance with Law 11/2021 of July 9 aimed at preventing tax fraud. This amount applies to transactions in which at least one of the parties is a independent entrepreneur or professional. Cash transactions between individuals, where no one acts as entrepreneur, can reach up to 10,000 euros.
Exceptions include payments from people with tax domicile outside Spainwho can pay up to 10,000 euros in cash without being considered an entrepreneur. It is important to note, however, that this limit does not allow payments to be divided into several installments to avoid the restriction; If a transaction amounts to more than 1,000 euros, part cannot be paid in cash.
THE cash payments They cover not only coins and banknotes, but also travelers and bearer checks. Exceeding this limit may result in sanctions, with fines of 25% of the amount exceeded. However, reporting the offense allows you to benefit from an exemption.
The regulation seeks increase budgetary control and reduce illegal acts, since payments by card or transfer are recorded, allowing greater monitoring by the Tax Agency.
digital euro
The digital euro is a digital currency being developed by the European Central Bank (ECB) which aims to modernize the European financial system. This new type of currency appears in response to the increasing digitalization of the economy and the need to adapt transactions to an environment where electronic payments are increasingly common. The digital euro will be equivalent to the physical euro, backed by the ECB, which gives it stability and confidence, unlike cryptocurrencies.
The benefits of the digital euro include facilitating transactions, promoting innovation in the financial sector, reduced use of cash and greater financial stability. However, there are also a number of challenges, such as security risks, impact on traditional banking, privacy concerns and unequal access to technology between different generations.
In short, the digital euro could transform the currency management in the digital age, but its implementation will require careful planning to maximize its benefits and address the challenges it presents.
