Malta is cash capital, says European Central Bank

A European Central Bank (ECB) report analysing the use of cash, cards and other payment methods used in the euro area economies in 2016 showed Malta is the cash capital of the EU, topping the list of countries where most transactions are effected directly in cash. According to the detailed study, 92 per cent of all transactions in Malta were made in cash, bypassing any use of electronic or banking system, which would leave an audit trail. The EU average for cash transactions in 2016 was 79 per cent. The ECB said that cash transactions in Malta constituted 74 per cent of the total value of transactions in the Maltese economy that year. The figure was 54 per cent for the EU. Although Malta tops the list of cash-dependent economies, other southern Member States follow closely, with the Greeks and Cypriots paying in cash in 88 per cent of their transactions and Italians paying cash in 87 per cent of theirs. On the other hand, the study shows that northern European countries are less dependent on cash, with the Netherlands having the fewest cash transactions, with just 45 per cent. Although the ECB’s study did not delve into the reasons that southern Member States were still more...