On the cash debate, National Bank boss Robert Holzmann says that a cash acceptance guarantee could be arranged nationwide. In an interview with the “Krone” he also warns against the secret abolition.
It is a plan that is not only approved in the ÖVP. After criticizing the plan to enshrine cash in the constitution, Chancellor Karl Nehammer is now promoting his initiative in a video. He is committed to “preserving our money” and wants “cash to be constitutionally protected as a means of payment,” Nehammer affirms in the video.
summer debate
The cash debate attracted constitutional experts and Martin Selmayr, the EU representative in Vienna. Selmayr wrote a commentary in the “Kurier” on Saturday, explaining that member states had no currency sovereignty – and that cash was guaranteed by EU law anyway.
Explained in 5 minutes: How justified is worrying about cash?
The debate is “not precise,” Robert Holzmann, Governor General of the National Bank, said in an interview.
“crown”: Mr Holzmann, if Member States have no monetary sovereignty from a purely legal point of view, then what is the point of a cash task force?
Robert Holzmann: The EU treaties stipulate that the euro is the legal tender. But EU law does not regulate whether cash is accepted as a means of payment. There is a need for sharpening. In the taskforce we want to find a legal regulation on where and how the money can be used in the future. The second concern is security of supply. This means that cash is also available.
Does this mean you are concerned about creating a legal guarantee for accepting cash in Austria?
Let me give you an example: in the Netherlands, twelve percent of pharmacies no longer accept cash. Cash payment is also no longer possible in about 22 percent of the cinemas. There is therefore a need for a legal provision that, as a citizen, you have the right to pay with cash, but also with a card. Whether a law on the acceptance of cash should be included in the statutes is a technical question.
Are you worried that cash abolition is coming through the back door?
“Back to the beginning” is all I can say. It is unacceptable for shops, pharmacies or cinemas to switch to full card payment just because it is easier for them to bill.
Brussels is working on a regulation for euro cash. Why isn’t Austria more involved in this?
Austria joins in. However, national regulation is needed to ensure freedom of choice between cash and card.
Source: Krone
I’m Ben Stock, a journalist and author at Today Times Live. I specialize in economic news and have been working in the news industry for over five years. My experience spans from local journalism to international business reporting. In my career I’ve had the opportunity to interview some of the world’s leading economists and financial experts, giving me an insight into global trends that is unique among journalists.
