First issue on 01/01/2002: Euro cash celebrates its 20th birthday

The euro was first issued as cash 20 years ago. Electronic means of payment are on the rise, but the abolition of notes and coins is hardly an issue.

It was a special New Year’s Eve when the new euro banknotes and coins came into circulation 20 years ago. The new money was celebrated everywhere in the then twelve member states of the Eurozone – with the first in Finland, where, due to the time difference, the Euro notes came out of the machine an hour earlier than in Germany and replaced the Finnmark. In Athens, people cheered near the Acropolis, even if many wistfully said goodbye to the 2,700-year-old Greek drachma. In Germany, the Finance Minister at the time, Hans Eichel, SPD, was one of the first to exchange 200 Deutsche Mark at the Berlin New Year’s Eve party and received 102 euros and 26 cents for it.

Initially, the euro was fraudulent

Eichel saw the euro primarily as a further step towards European integration: “In any case, it is a further step towards realizing the unity of Europe and, in particular, the European internal market. And everything that removes barriers in the internal market helps economic growth,” said Eichel. “The euro is part of the program for more prosperity in Europe.”

With cash, the around 300 million people in the Eurozone at the time had the new currency in their hands for the first time, which had already been introduced as book money three years earlier. To make it easier to use, the banks issued so-called starter kits that contained a selection of bills and coins. In the first few years, the German population in particular viewed the new currency with great skepticism, above all because the euro quickly developed into what felt like a expensive euro – a development that the first ECB President Wim Duisenberg later had to admit. But meanwhile the currency has prevailed and also gained in popularity. This is mainly due to the fact that the euro has established itself as a stable currency despite the numerous crises.

Cash is becoming less important worldwide

Like everywhere else in the world, cash is becoming less and less important in the eurozone, especially in northern European countries. Credit and debit cards, book money and new payment systems are on the advance, all driven by the pandemic. “In Germany we see a generation gap above all,” says Carsten Brzeski, chief economist for Germany at ING Bank. “The older Germans are still trying to pay with cash, while the use of cash among the under-35s is already heading towards zero. This means that a whole generation is growing up here that no longer pays with cash at all, but rather with it Smartphone pays that pays with the card, but definitely no longer with bills and coins. “

Many states are also trying to limit the use of cash in order to get a better grip on tax evasion, money laundering or drug trafficking – one reason why, for example, the issue of the 500 euro note has been stopped. Actors in the financial markets say these are legitimate reasons. One should not forget, however, that every citizen also has the right to self-determination, what they do with their money, says Antje Praefcke, foreign exchange market expert at Commerzbank: “He deserves it, he can spend it where and when he wants . Not everyone has to know that. Because all other payments, be it with a credit card or with a bank card, are – if you really want to – be traceable in some form. “

New design and new bills from 2024

The European Central Bank also considers this freedom and self-determination of consumers to be a valuable asset. She has therefore repeatedly emphasized that abolishing cash is out of the question for her.

However, a lot could change: because the abstract design of the banknotes with bridges, gates and windows is up for grabs. On the occasion of the anniversary, a survey of the meanwhile 340 million citizens in the euro zone, which has now expanded to 19 countries, is to be carried out. The aim is to determine whether a different design or new motifs are desired on the banknotes. The new notes should then come into circulation from 2024.