Restrictions on using cash could interfere with fundamental constitutional rights. This conclusion was drawn from a legal opinion presented on Wednesday in Berlin by Christian Waldhoff from the Humboldt University for the German Association of Money and Payment Services (BDGW).
The report analyzed the constitutional and EU law status of cash and outlined the potential impacts on freedom of choice, data protection, and the functioning of the payment system. The core focus was on the freedom of choice when making payments. Waldhoff stated, “The choice of payment method is part of the constitutionally protected private autonomy. Interventions are therefore only permissible under narrow conditions”.
The study emphasizes that the free choice of payment means is a vital component of freedom of contract. However, individual autonomy ends where the fundamental rights of third parties are affected, particularly with cashless payments that routinely generate personal data. Thus, the right to informational self-determination gains significant weight and sets legal boundaries to the freedom of excluding cash.
Furthermore, the report stresses that cash is the only payment method that can be used without data trails. In contrast, cashless procedures systematically generate personal data, such as records of consumption behavior or the creation of user profiles. As cash is increasingly displaced, the data density-and consequently, the intensity of potential privacy intrusions-rises.
The report also frames the supply of cash as part of the state’s essential public services and as critical infrastructure. Its operational reliability contributes to the stability of the payment system, especially during crises or digital system failures. Against this backdrop, a state responsibility emerges to permanently secure the infrastructure and acceptance of cash.
Hans-Jörg Hisam, the deputy chairman of the BDGW, noted that the association’s position was confirmed by the opinion: “Cash continues to fulfill important functions for participation, data protection, and system stability”. Based on this, the association advocates for consistent payment modality neutrality. This means that if cashless payments are made mandatorily possible, the obligation to accept must apply to cash as well.