Money is still king for many in Germany: NPR

"Money is king" is a secular saying. For much of Germany, however, it is well updated.

In Berlin, do not plan to move easily with a simple credit card. "Cash Only" signs are hung on the doors of shops and restaurants in the city.

This can be surprising for some. After all, Germany is the leading European economy and renowned for its technological know-how. But even if some of its neighbors in Europe and elsewhere exchange physical money quickly for new payment technologies, many Germans prefer their euro banknotes. Money is fast and easy to use, they argue. It provides a clear picture of personal expenses, keeps transactions more private and is widely accepted in the country.

"I usually pay in cash so I have the feeling of keeping track of the money I spend," says Madeleine Petry, 29, while she's shopping in a supermarket in Berlin. "Sometimes, when I could not go to the ATM, I used my debit card in the store, but I never used my credit card to shop in the real world, just to online shopping. "

She is not the only one to have this state of mind.

A study conducted in 2017 by the country's central bank, the Deutsche Bundesbank, revealed that the Germans wore on average 107 euros (more than 115 dollars at the 2017 exchange rate) in their portfolio. That's more than three times what the average French carries (32 euros), according to the European Central Bank. It's also a lot more than the Americans are wearing. Three-quarters of those surveyed by a US bank said they earned less than $ 50 – and one-quarter reported keeping $ 10 or less in their wallet.

This does not mean that the Germans exclude other modern payment methods. In 2018, the Germans used for the first time more plastic than plastic bills. According to a report by the EHI Retail Institute in Cologne, 48.6% of sales were made with a debit or credit card, against 48.3% in cash.

Nevertheless, Germany has one of the highest utilization rates of the highest species in the European Union. "The most important reasons for the intimate relationship of Germans with their cash are their needs in terms of personal data protection, security and confidentiality of payments and due to a simple and universal use," Doris said. Neuberger, Head of the Credit and Credit Department of the German University of Rostock.

According to a Bloomberg report, since the creation of the common currency in 2002, the Bundesbank has issued more euros than other members of the bloc.

By the end of March, the German central bank had issued 692 billion euros of banknotes. "About a third of this number remains in Germany, while only 10% are used in daily transactions, 20% are used for domestic hoarding and about 70% are used outside of Germany," says a door. of the Deutsche Bundesbank.

Accumulating money at home is another national specialty.

"In recent years, the tendency to accumulate money on current accounts has evolved.The Germans also have a long way ahead of the rest of Europe," said Agnieszka Gehringer, a professor. Associate of International Economics at the University of Göttingen.

"By holding money, I have something tangible in [my] hand that gives me more security than something intangible, like electronic money, "she says.

There are also historical reasons for the Germans' passion for hard money. "We know that for many people, mostly elderly, in West Germany, the [former currency] deutsche mark … was a synonym for Wirtschaftswunder, that is, the economic boom of the reconstruction phase that followed the Second World War. This seems to be related to building a new democratic state, peace and freedom, "says Oliver Serfling, associate professor of economic policy and development at the Rhine-Waal University of Applied Sciences.

For the people of the east of the country, the currency was a symbol of the end of the socialist shortage economy, its participation in the welfare of the West and the reunification of the country. 39; Germany. "It could have created a sincere relationship between the Germans and their money," says Serfling. "Many Germans had already struggled with the introduction of euro coins and banknotes in 2002. But now switch to faceless and soulless smart cards, to NFC tags, or simply by swiping the smartphone could be felt by many as a miserable divorce. " (NFC stands for Near Field Communication, which allows mobile devices to communicate with payment systems in one click).

There is a common German saying, Nur Bares is Wahreswhich means "only money is true". Limiting it is unthinkable for most Germans. Last year, the German Finance Minister had decided to cancel his plan to cap cash payments at 5,000 euros, partly because of the reaction of public opinion.

The calls of politicians and economists to impose limits on liquidity are often presented as a way to fight against tax evasion, money laundering and other criminal activities. But while some countries, such as Sweden, are about to switch to cash, the Germans are largely opposed.

Serfling conducted an online survey in 2017 on national attitudes towards the elimination of cash payments. "We have received a crushing refusal of 90% to abolish cash payments on almost all substrates of the population," he said.

For Neuberger, a professor at the University of Rostock, banning anonymous payments would allow the government to have access to more information about citizens than the constitution allows. "This would touch the foundations of a free and participatory society for all members and violate the fundamental right to self-determination of information," she said.

In 2017, Germany passed a law requiring proof of identity to pay more than 10,000 euros ($ 11,341 at the rate in force on the date of publication) in cash. A debate is underway to find out if it will help the authorities to fight against money laundering and the financing of criminal activities.

Even with the reluctance of Germans to give up physical money, analysts see a potential for change in the new generations. When Gehringer interviewed his students, about 80% reported frequent electronic payments.

Change can happen. But the need for security of the average German, says Gehringer, will not fail to slow down the process.