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June 22, 2024
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Romania’s National Bank Denies Involvement in Government’s Initiative to Ban Cash Transactions

Romania’s Government initiated a law stipulating that cash transactions must be limited in Romania and banned up to a certain amount. The Government initiated an ordinance to ban all cash transactions in the country above EUR 1,000 a day. The ordinance is not yet applicable, as it has been contested at the Constitutional Court.

The National Bank is trying to deny the involvement in the ordinance draft. During a talk show hosted by Antena 3 CNN, Dan Suciu, Romania’s National Bank’s spokesperson, said that the institution he represents has nothing to do with the Government’s initiative.

I can assure you that there is never any question of cash disappearing. I know that from here, they go all over the land of theories related to the disappearance of cash.
These limitations are related to certain contextual moments, decided by those who took this legislative initiative, but the disappearance of cash is excluded.
And I want to add that even at the European Central Bank, this matter was discussed, not necessarily about our legislation. But there are all kinds of restrictive laws on using cash in different countries, and here we are.
The European Central Bank has explicitly said that there is never a question of the disappearance of cash, even if one form of electronic payment is encouraged.
We, the National Bank, were not involved in this discussion. It relates, as explained, to tax evasion to other things that belong to other institutions’ activity.

Dan Suciu, Romania’s National Bank spokesperson for Antena 3 CNN

On the other hand, the spokesperson says the road must be towards digitization and electronic payment. He stated that the authorities should promote e-payment rather than banning cash.

Cash is still popular in Romania and, while in the country, you can notice many people using cash like they used to all their lives. Banning cash transactions will not make tax evasion disappear, but the Socialist Government ruling the country is quite desperate to take all the unpopular measures necessary to avoid a default. Recently, the Government introduced new taxes in Romania, which have already shaved off important points in popularity for the Socialists.

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