European correspondent Anna Karismo’s video letter reveals why in Germany cash is king and inflation is a bigger problem than in the rest of Europe.
Anna KarismoEurope correspondent
FRANKFURT Cash is valued in Germany because people fear that the authorities will control them through electronic money. A clear majority of Germans prefer to use cash rather than a bank card or payment apps.
The fear of control stems from history. Germany raised money for its wars from private people in the last century. The government sold bonds to citizens, in which many invested their entire wealth.
Inflation accelerated, and the value of money collapsed. For example, a kilo of rye bread cost 233 billion German marks exactly one hundred years ago. Property was destroyed.
Cash is thought to be completely private and free. It leaves no trace in banks’ databases, unlike, for example, payment cards, and it cannot be destroyed or taken over with a click like digital money.
On average, Germans have around 1,400 euros in cash “under the mattress” at home.
Because in Germany you can use cash to make purchases of over 10,000 euros, too money laundering there’s a lot going on. According to some estimates, Germany is For the Italian Mafia second most important country because anonymous cash money is used so much.
How have you experienced using cash if you have traveled in Germany? You can discuss the topic until Tuesday 7 November. until 11 p.m.