The Bank of Portugal highlights in its latest edition of the “Boletim Notas e Moedas” that the recent blackout illuminated the indispensable role of cash, asserting it as a strategic resource amid operational challenges in electronic payments.
In the opening article of the annual bulletin, the central bank elaborates on the impact of the April blackout on its treasury operations and examines how this crisis influenced cash demand.
“Although the contingency plan managed to minimize the effects on critical processes, this event revealed areas for improvement,” the Bank of Portugal noted.
It stated that these improvements “are already being implemented” to “strengthen the Bank of Portugal’s response capacity in disruptive events.”
The Bank of Portugal emphasized that “despite the constraints, monetary issuance was ensured,” with the institution’s business continuity plan activated “immediately” to “maintain critical processes and control the closure of non-critical processes in accordance with defined protocols.”
Priority was given “to people’s safety, asset protection, and value safeguarding,” they emphasized.
The central bank specified that at the main cash distribution center in Carregado, “withdrawal and deposit operations continued uninterrupted.”
At the Porto facilities, while alternative power supply systems were “promptly activated,” a technical fault delayed the support system’s start-up, prompting an urgent technical intervention that “swiftly resolved the issue.”
In its assessment, the central bank observed that the blackout exposed “the vulnerability of a payment ecosystem increasingly dependent on electronic infrastructures” and highlighted cash’s importance as an alternative.
“In an economy transitioning to digital means, the importance of cash as an alternative payment method during a crisis and, in particular, during power failures must be emphasized,” they asserted.
On the day of the blackout, the Bank of Portugal reported a 40% decrease in ATM withdrawals, while the total amount moved reduced by 30% compared to the daily average in April.
Comparisons with other Mondays in 2025 “confirm the same trend”: a 35% reduction in the number of operations and a 25% decrease in value.
Conversely, the average value per withdrawal “rose significantly, far above the usual pattern,” suggesting that “whenever consumers accessed cash, they opted to withdraw significantly larger amounts than usual.”
In the days following the blackout, both the number of operations and the amount withdrawn grew, indicating “many consumers likely made extraordinary withdrawals, partly to compensate for those uncompleted on the blackout day due to the lack of accessibility of most ATMs.”
However, the Bank of Portugal notes, “it is also plausible that part of the population decided to reinforce cash reserves,” having realized “the usefulness of physical money in crisis moments.”
Emphasizing cash as a “safety net, ensuring the economy continues when technology fails,” the regulator deems it “essential to preserve a well-distributed network of cash access points across the territory.”
Simultaneously, they conclude, citizens are advised that having some cash available is “prudent.”
