Chart of the Day: In Europe, Negative Rates and War on Cash Reinforce 'Cash is King'

The Bloomberg chart of the day shows a robust surge in cash in circulation in the Eurozone

The Bloomberg explains (hat tip Mises Blog)

Europe’s ATMs worked overtime in 2015. A record 1.08 trillion euros ($1.17 trillion) of banknotes were in circulation, almost double the value 10 years ago, according to data compiled by the European Central Bank. That’s a counterargument to some bankers who say that electronic forms of cash will replace paper money sooner rather than later.

The value of banknotes in circulation rose 6.5 percent last year, the most since 2008. There are financial reasons - including negative rates on deposits - but part of the increase could be related to the influx of refugees, who don’t have bank accounts.

Negative rates and the war on cash will push more and more people to use cash