[Spain] Banco de España advises households to keep a cash reserve after 2025 outage

In Spain, Banco de España advocated for households to keep a cash reserve on the eve of the first anniversary of the blackout that left the entire Iberian Peninsula without electricity, El Conciso reports.

The regulator stated that issues such as purchasing basic necessities or travelling home from work were complicated by the reliance on electronic payment methods, which became unavailable.

Banco de España said, "The cash at that time was not going to restore the energy, but it could make life easier during the emergency. "

It reportedly added that cash, as a means of payment, has multiple advantages: "It ensures privacy, is inclusive, helps control spending, is safe, and is a store of value."

During the blackout, there was a significant drop in cash withdrawals from ATMs. Those without power were inoperable, although they still contained funds, while those with their own batteries and connectivity ran out of cash due to high demand.

The following day, once the electricity supply was restored, the central bank noted a steep increase in ATM cash withdrawals.

The financial authority says the outage allowed it to "learn lessons" for a hypothetical second scenario. 

“The blackout demonstrated that the widespread implementation of the system, together with a very long service schedule in the case of the operational centres, allows the Banco de España's funds to be brought closer in time and distance to the end consumer (citizens, businesses and banking agencies)," it said.

Banco de España reportedly advises that, to reduce the impact of possible similar situations in the future, it would be reasonable to have a minimum amount of cash on hand for the immediate purchase of essential goods and services. It suggests between 70 and 100 euros in cash for each member of the household.

Source: El Conciso

(Quotes via original reporting)

In Spain, Banco de España advocated for households to keep a cash reserve on the eve of the first anniversary of the blackout that left the entire Iberian Peninsula without electricity, El Conciso reports.

The regulator stated that issues such as purchasing basic necessities or travelling home from work were complicated by the reliance on electronic payment methods, which became unavailable.

Banco de España said, "The cash at that time was not going to restore the energy, but it could make life easier during the emergency. "

It reportedly added that cash, as a means of payment, has multiple advantages: "It ensures privacy, is inclusive, helps control spending, is safe, and is a store of value."

During the blackout, there was a significant drop in cash withdrawals from ATMs. Those without power were inoperable, although they still contained funds, while those with their own batteries and connectivity ran out of cash due to high demand.

The following day, once the electricity supply was restored, the central bank noted a steep increase in ATM cash withdrawals.

The financial authority says the outage allowed it to "learn lessons" for a hypothetical second scenario. 

“The blackout demonstrated that the widespread implementation of the system, together with a very long service schedule in the case of the operational centres, allows the Banco de España's funds to be brought closer in time and distance to the end consumer (citizens, businesses and banking agencies)," it said.

Banco de España reportedly advises that, to reduce the impact of possible similar situations in the future, it would be reasonable to have a minimum amount of cash on hand for the immediate purchase of essential goods and services. It suggests between 70 and 100 euros in cash for each member of the household.

Source: El Conciso

(Quotes via original reporting)