The European Central Bank has announced its opposition to proposals from the Spanish government to gradually eliminate cash from the economy.
The ECB believes that the move will disadvantage the most vulnerable groups in Spain.
The Spanish government has made the proposals to eliminate cash in the country in measures they will end the black economy and increase tax collection.
However, the reality is that many of Spain’s lowest income citizens rely on cash payments to provide them with an income, often falling below the minimum threshold for taxation.
The government has discussed other measures to boost the economy, including reducing the limit of cash payments between individuals from €2,500 to €1,000.
The proposals will be the subject of debate in the coming weeks.