Sollten wir wieder mehr auf Bargeld setzen?

Introduction to the Podcast

Overview of Support and Theme

• The podcast is supported by Scalable Capital, which simplifies investment through a single app for stocks, ETFs, interest rates, and savings plans. More information can be found at www.scalable.capital. (0s)

Discussion on Cash in Austria vs. Sweden

Current Payment Trends

• Host Natascha Iker introduces the topic of cash usage in Austria compared to Sweden, where cash payments are becoming rare. (39s)

Call for Cash Usage

• The Governor of the Swedish Central Bank recently urged citizens to start using cash again despite the trend towards card payments. (60s)

Insights from Guests Regina Brockner and Isabella Hein

Payment Methods in Sweden

• In Sweden, most transactions are done via mobile apps like Swish or credit cards, contrasting with Austria's preference for cash payments. (83s)

Cultural Differences in Cash Usage

• Young people in Sweden often do not carry cash at all; this contrasts sharply with Austrian habits where cash remains prevalent. (105s)

Reasons Behind Resistance to Cashless Payments in Austria

Emotional Connection to Cash

• Austrians have a historical emotional attachment to cash that influences their reluctance to abandon it entirely despite increasing card usage (35% of transactions). (185s)

Historical Context

• Unlike Sweden, where banks and politics agreed early on to reduce cash circulation, Austria has maintained a strong cultural connection to physical currency. (206s)

Factors Influencing Payment Preferences

Economic Considerations

• The costs associated with handling cash (e.g., ATM maintenance and security concerns) contribute to discussions about transitioning away from it. (249s)

Transparency Issues

• Concerns about black market activities linked with cash transactions highlight differences between Austria and Nordic countries known for transparency and lower corruption levels. (292s)

Future Outlook on Cash Usage

Technological Innovations

• As technology evolves, there is pressure on traditional payment methods; however, cultural factors may slow down the transition away from cash in Austria. (338s)

This structured summary captures key insights from the podcast while providing timestamps for easy reference back to specific points discussed within the transcript.

Geopolitical Concerns and Payment Systems

The Shift from Digital Payments to Cash

• There is a growing concern in Nordic and Baltic countries regarding reliance on digital payments, particularly due to their proximity to Russia.

• Incidents of payment failures have occurred, including bank outages that left customers unable to withdraw cash or make transactions for hours, attributed mainly to cyberattacks.

Technical Failures vs. Cyber Threats

• Many issues are not due to cyberattacks but rather technical failures within banking systems, which banks often do not disclose fully.

• Major incidents like widespread power outages in Sweden and Portugal have caused significant disruptions in transportation and telecommunications.

Real-Life Impacts of Payment System Failures

• A notable incident involved a three-hour outage of a payment service provider that led to chaos at toll booths connecting East and West Denmark, highlighting the fragility of digital payment systems.

• Reports indicate that during such crises, public patience can wear thin quickly, leading to confrontations with staff managing toll operations.

Calls for Increased Cash Usage

• In response to these vulnerabilities, both the Swedish central bank and civil protection authorities are advocating for increased use of cash as a backup during emergencies.

• The lack of electricity halts all electronic transactions; thus, having cash on hand is recommended by organizations like the Austrian Civil Protection Association.

Examples of Account Freezes Due to Political Tensions

• Instances exist where individuals' accounts were frozen due to political sanctions or tensions; this has affected even those who oppose regimes like Putin's.

• Banks must comply with government orders regarding account freezes related to sanctions against specific individuals or entities.

Regulatory Compliance Challenges

• While account freezes are typically reserved for high-risk individuals under scrutiny by authorities, they can also affect ordinary citizens unexpectedly during regulatory checks.

• An example was shared about an individual unable to access funds while awaiting residency permit processing; although rare, it underscores potential risks associated with banking services amid geopolitical tensions.

Concerns Over Digital Payment Systems and Cash Dependency

Geopolitical Implications of Digital Services

• The geopolitical landscape raises concerns about the U.S. potentially restricting digital services to countries like Austria, Germany, and France due to political discomfort.

Dependence on U.S. Digital Service Providers

• A significant portion of digital payment services in Europe is provided by U.S. companies (e.g., Google Pay, Apple Pay), leading to worries about losing access to these essential services.

Challenges of Reverting to Cash Payments

• Sweden's long-term shift away from cash poses challenges for any attempt to revert back; approximately 90% of the population now prefers card or mobile payments.

Decline in Cash Circulation

• The transition away from cash has resulted in fewer ATMs and banks that no longer handle cash transactions, complicating efforts to reintroduce cash payments into society.

Legislative Responses and Public Preparedness

• There are proposals for legislation requiring businesses and banks to accept more cash, alongside recommendations from the Swedish Civil Protection Agency for citizens to prepare for emergencies by having cash on hand.

The Importance of Cash Reserves in Emergencies

Defining an Emergency Scenario

• An emergency can range from personal financial issues to larger crises like power outages or internet failures; thus, having a certain amount of cash available is crucial for preparedness.

Infrastructure Reliability

• Just as we rely on electricity and transportation systems, there’s an expectation that payment infrastructures will function reliably; however, it’s wise also to have physical currency available at home as a backup plan.

Recommended Cash Quotas

• Experts suggest maintaining a cash circulation rate around 20% within a country; Sweden currently operates near this lower threshold compared with other nations like Germany which maintains around 50%.

Exploring Alternatives: The Future of Payment Systems

Current Status of Cash as Backup

• In emergencies where electronic systems fail (like power outages), having physical cash remains the most reliable option available today for transactions.

Discussion on Alternative Payment Methods

• Consideration is being given towards alternative payment methods such as the proposed digital Euro by the European Central Bank (ECB), which would allow offline transactions similar to handling physical money directly between individuals.

Potential Benefits of Digital Euro

• While not intended to replace cash entirely, the digital Euro could provide functionality during crises when traditional banking systems may be compromised, reducing reliance on American payment processors like Visa or PayPal.

This structured summary captures key discussions regarding digital payments' geopolitical implications, societal shifts away from cash dependency, emergency preparedness concerning currency availability, and potential future alternatives in payment systems while providing clear timestamps for reference.

Discussion on Cash and Digital Currency Trends

The Future of Cash in Austria

• The introduction of the digital Euro is planned by 2029, but cash remains a preferred alternative for now.

• Austria's situation is discussed; while it has a higher cash usage rate, it is not immune to global financial issues.

Security Concerns and Global Trends

• There’s an ongoing debate about the security of cash versus digital payments, especially as trends shift back towards cash usage.

• A famous bank slogan suggests that money brings happiness when one has it available when needed, reflecting broader sentiments about financial security.

Reflections on Austria's Approach

• Despite some challenges, there’s a light-hearted acknowledgment that Austria may be handling its financial strategies well compared to other countries.

Conclusion and Call to Action

• The discussion wraps up with thanks for participation and encourages listeners to provide feedback or ratings on podcast platforms.