SPAIN may take future steps towards cash transactions becoming something of the past, according to a plan put forward by the ruling coalition in Madrid’s Congreso.

The PSOE-Unidas Podemos coalition are suggesting that gradual moves towards a ‘cashless’ society by a greater use of bank cards would be a good way of reducing black market and tax dodging activities.

The proposals have no legal statute but will nevertheless be debated, as the parliamentary group sees the replacement of all cash as a final long-term aim.

The coronavirus pandemic saw card usage rise 7.69% and use of cashpoints plummet 17.72%.

It also follows a move from the Bank of Spain to raise contactless payment limits to €50, from €20, before a user needs to enter their PIN in order to avoid coronavirus transmissions.

Meanwhile, a draft bill to combat tax fraud will include reducing the maximum cash amount that can be legally used in a transaction from €2,500 to €1,000.

With the economic impact of the pandemic set to be severe, further moves against tax dodging seem inevitable.

This site uses Akismet to reduce spam. Learn how your comment data is processed.