EN ECB-PUBLIC  
 
OPINION OF THE EUROPEAN CENTRAL BANK 
of 14 May 2021  
on the obligation to a ccept cash payments 
(CON/2021/18) 
 
Introduction and legal basis 
On 21 April 2021 the European Central Bank (ECB) received a req uest from the President of Narodowy 
Bank Polski (NBP), acting on behalf of the President of the Rep ublic of Poland, for an opinion on a draft 
law amending the Law on payment services (hereinafter the ‘draf t law’). 
The ECB’s competence to deliver an opinion is based on Articles  127(4) and 282(5) of the Treaty on the 
Functioning of the European Union and the first and second inde nts of Article 2(1) of Council Decision 
98/415/EC1, as the draft law relates to currency matters and means of pay ment. In accordance with the 
first sentence of Article 17.5 of the Rules of Procedure of the  European Central Bank, the Governing 
Council has adopted this opinion. 
 
1. Purpose of the draft law 1.1 The purpose of the draft law, which amends the Law on payme nt services
2,  i s  t o  m a k e  t h e  
acceptance of banknotes and coins issued by NBP mandatory in tr ansactions for the provision of 
services and the sale of goods by merchants to consumers. As no t e d  i n  t h e  e x p l a n a t o r y  
memorandum  accompanying the draft law, the objective of the draft law is t o take into 
consideration the payment habits of all social groups and the n eed to enable them to use the 
preferred form of payment, including cash payments, in Poland. In a crisis, such as the current 
COVID-19 pandemic, the non-acceptance of cash in retail and ser vice outlets could have great 
repercussions, mainly for elderly and disabled people paying on ly in cash, who may suffer 
considerable problems satisfying basic living needs such as the  purchase of food and medicine. 
With the development of the pandemic the non-acceptance of cash  by merchants is becoming 
increasingly commonplace, and a study on payment practices in P oland conducted by NBP in 
September and October 2020 showed that around 8 % of respondent s had encountered a refusal 
by merchants to accept legal tender cash during the pandemic.  
1.2 According to the explanatory memorandum, the Polish legisla tor has, to date, not obliged 
commercial entities operating in Poland to accept cash payments . The provisions of the Law on 
                                                 
1  Council Decision 98/415/EC of 29 June 1998 on the consultation  of the European Central Bank by national 
authorities regarding draft legislative provisions (OJ L 189, 3 .7.1998, p. 42). 
2  The Law of 19 August 2011 on payment services (Ustawa z dnia 19 sierpnia 2011 r. o usługach płatniczych 
(Dziennik Ustaw z 2020 r., poz. 794 ). 
ECB-PUBLIC  
2 Narodowy Bank Polski3, which provide that banknotes and coins issued by NBP are lega l tender 
in Poland, cannot be interpreted as laying down an unconditiona l obligation to accept banknotes 
and coins, notwithstanding the fact that they have the status o f legal tender4. The consequences 
of a currency being legal tender are not specifically set out b y law in Poland. Hence, the principle 
of freedom of contract laid down in the Polish Civil Code5 a l l o w s  m e r c h a n t s  t o  s e t  u p  t h e i r  
activities in such a way that they conclude contracts with cons umers only if the consumers agree 
to use only cashless payments; this could be achieved, e.g., by  simply posting information about 
their non-acceptance of cash payments in a visible place, such as in the shop window. This is a 
question of including relevant provisions in a contractual rela tionship, rather than of the legal 
status of banknotes and coins6.  
1.3 To achieve the purpose of obligating merchants to accept pa yments in legal tender cash despite 
the principle of freedom of contract, the draft law prohibits m erchants from making a contract for 
the provision of services or for the sale of goods dependent on  the payment being cashless and 
from refusing payment from a consumer in legal tender banknotes  and coins issued by NBP. For 
this purpose, the concept of a ‘merchant’ means a payee other t han the consumer to whom the 
acquirer provides a payment service. The draft law provides the  following exemptions in respect 
of which the obligation to accept cash does not apply: (a) busi ness activities conducted on the 
internet; (b) at a business establishment where no staff is pre sent; and (c) during a mass event7 
(e.g. a mass entertainment or sporting event) provided that inf ormation to that effect is included in 
the event rules. According to t he explanatory memorandum, these  exemptions from the obligation 
to accept cash payments strike a balance between the interests of individual economic agents: 
on one hand, they offer merchants discretion in specific cases where non-acceptance of cash 
payments may be necessary, and, on the other hand, they protect  consumer interests without 
distorting the essence of the draft law. 
1.5 Finally, the draft law prohibits merchants from making surc harges or charging any additional fees 
for accepting payment in banknotes and coins issued by NBP or d ifferentiating the price 
depending on the form of payment. As pointed out in the explana tory memorandum, the aim of 
this provision is to protect consumers who want to pay in cash against any additional costs of this 
kind. 
 2. General observations 
Role and importance of cash payments in society 
                                                 
3  Law of 29 August 1997 on Narodowy Bank Polski (Ustawa z dnia 29 sierpnia 1997 r. o Narodowym Banku Polskim ( Dziennik Usta
4  See Article 32 of the Law of 29 August 1997 on Narodowy Bank P olski (Ustawa z dnia 29 sierpnia 1997 r. o 
Narodowym Banku Polskim ( Dziennik Ustaw z 2020 r., poz. 2027 )) and the explanatory memorandum to the draft 
law. 
5  Law of 23 April 1964 – the Civil Code (Ustawa z dnia 23 kwietn ia 1964 r. – Kodeks cywilny ( Dziennik Ustaw z 2020 
r., poz.1740 )). 
6  See Article 3531 of the Law of 23 April 1964 – the Civil Code (Ustawa z dnia 23 kwietnia 1964 r. – Kodeks cywilny 
(Dziennik Ustaw z 2020 r., poz.1740 )). 
7  Within the meaning of Article 3(1) of the Law of 20 March 2009  on Safety at Mass Events (Ustawa z dnia 20 marca 
2009 r. o bezpieczeństwie imprez masowych (( Dziennik Ustaw z 2019 r., poz.2171 )). 
ECB-PUBLIC  
3 2.1 Although electronic payment instruments are increasingly us ed as the preferred form for retail 
payments in a number of Member States, the ECB notes that cash continues to play an important 
role in society. The ability to pay in cash remains particularl y important for certain groups in 
society that, for various legitimate reasons, prefer to use cas h rather than other payment 
instruments. Cash is generally also useful as a payment instrum ent because it is widely 
accepted, fast and facilitates control over the payer’s spendin g. Moreover, it is the only payment 
instrument that allows citizens to settle a transaction in cent ral bank money instantly8. 
2.2 The ECB understands that electronic payment instruments are  increasingly used as a method of 
payment in Poland9. However, the use of cash in payment transactions remains domi nant in 
Poland, and according to the latest publicly available data the  use of cash in retail payments in 
2019 accounted for 54 % of the total number of payments made10. A part of Polish society can be 
considered to be outside the banking system, including persons who do not yet, or anymore, 
have a bank or payment account; this excludes them from access to non-cash payment 
instruments. As noted in the explanatory memorandum, in line wi th the initial results of a survey 
which was carried out by NBP in September and October 2020, thi s group is currently estimated 
to be around 14 % of Polish citizens above the age of 15 . 
2.3 While the ECB holds a positive view of further innovation a nd development in the field of 
electronic payment instruments, the ECB also considers that cas h has a unique role, as certain 
groups in society are unable to use electronic payment methods and other innovative payment 
solutions. As such, cash is a crucial payment method, especiall y for the elderly, young people, 
immigrants, the disabled, socially vulnerable citizens and anyo ne with limited access to digital 
services11. There are other legitimate reasons why consumers might prefer  to use cash. It is the 
only means of payment that can be used to settle a debt immedia tely and finally without an 
intermediary, and which is available to anyone at any given tim e. Additionally, cash facilitates the 
inclusion of the entire population in the economy by allowing f inancial transactions to be settled in 
this way; Furthermore, cash could play an important role in the  event of a disturbance in the 
payment system12. 
2.4 In a crisis situation, such as the ongoing COVID-19 pandemi c, the non-acceptance of cash at 
physical points of sale may indeed be of particular significanc e  t o  t h e  e l d e r l y  a n d  p e o p l e  w i t h  
disabilities, or anyone unable to access cashless means of paym ent, and who as a consequence 
could face serious difficulties meeting their essential needs. 
2.5 Against this background, the ECB strongly welcomes that the  draft law strengthens citizens' right 
to pay in cash as a rule, especially in those cases where staff  is present at the business 
                                                 
8  See paragraph 2.4 of Opinion CON/2017/8; paragraph 2.1 of Opin ion CON/2019/41; paragraph 9.2.1 of Opinion 
CON/2020/13; paragraph 2.3 of Opinion CON/2020/21; paragraph 7. 2.1 of Opinion CON/2021/9. All ECB opinions 
are published on EUR-Lex. 
9  See Narodowy Bank Polski, System p łatniczy w Polsce  (Payment system in Poland ), p. 42, available on the NBP 
website at www.nbp.pl . 
10   See Narodowy Bank Polski, Ocena funkcjonowania polskiego systemu p łatniczego w II pó łroczu 2020 roku 
System p łatniczy w Polsce  (Assessment of the functioning of the Polish payment system in  t h e  s ec o n d  h a l f  o f  
2020)Payment system in Poland), p. 145, available on the NBP we bsite at www.nbp.pl .  
11  See paragraph 2.4 of Opinion CON/2017/8. 
12  See paragraph 2.1 of Opinion CON/2019/41 and 9.2.1 of Opinion CON/2020/13. 
ECB-PUBLIC  
4 establishment, thus preserving the role of cash as a generally accepted means of payment. 
However, the ECB would like to emphasize that there may be situ ations, such as in the area of 
public transportation services or other public services, where citizens should be able to have the 
option to pay in cash, even if the service would be paid for th rough automated means. The ECB 
understands that alternatives to cashless payment are currently  offered to a sufficient standard 
e.g. in case of public transport, by having nearby alternative options for purchasing a ticket in 
addition to the use of a cashless vending machine. The ECB also  welcomes the draft law’s 
introduction of a provision ensuring that, to the extent that a  merchant accepts cash, no 
surcharges may be imposed on cash payments and the monetary deb t is to be settled with legal 
tender notes and coins at nominal value.  
 
Status of euro banknotes and coins as a legal tender 
2.6 Poland is a Member State with a derogation from participati ng in the third stage of economic and 
monetary union. Although Union law only regulates the legal ten der status of euro banknotes and 
coins, the Union framework applicable to the legal tender statu s of euro banknotes and coins 
would become directly applicable in Poland if and when the euro  is introduced in Poland. Against 
this specific institutional backdrop, the ECB has prepared an a ssessment of the draft law’s 
provisions compared with relevant practices in the euro area, i n particular as concerns the legal 
tender status of euro banknotes. 
2.7 Under the Treaty, the European System of Central Banks (ESC B) has the basic task of promoting 
the smooth operation of payment systems13, and the ECB has the exclusive right to authorise the 
issue of euro banknotes within the Union14. The euro banknotes issued by the ECB and the 
national central banks of the euro area are the only banknotes with legal tender status within the 
euro area15. 
2.8 The concept of ‘legal tender’ has been considered by the Co urt of Justice of the European Union. 
I n  p a r t i c u l a r ,  t h e  C o u r t  h a s  c l a r i f i e d  t h a t  t h e  c o n c e p t  o f  ‘ l e g al tender’ of a means of payment 
denominated in a currency unit signifies that this means of pay ment cannot generally be refused 
in settlement of a debt denominated in the same currency unit, at its full face value, with the effect 
of discharging the debt. In clarifying the concept of ‘legal te nder’ under Union law, the Court has 
taken into consideration Commission Recommendation 2010/191 of 22 March 2010 on the scope 
and effects of legal tender of euro banknotes and coins16, which provides useful guidance for the 
interpretation of the relevant provisions of EU law. Point 1 of  Recommendation 2010/191 states 
that, where a payment obligation exists, the legal tender of eu ro banknotes and coins should 
imply, (a) mandatory acceptance of those banknotes and coins; ( b) their acceptance at full face 
value; and (c) their power to discharge from payment obligation s. According to the Court, this 
                                                 
13  Article 127(2) of the Treaty and Article 3.1 of the Statute of the ESCB. 
14  First sentence of Article 128(1) of the Treaty and first senten ce of Article 16 of the Statute of the ESCB. 
15  Third sentence of Article 128(1) of the Treaty and third senten ce of Article 16, of the Statute of the ESCB. 
16  OJ L 83, 30.3.2010, p. 70. 
ECB-PUBLIC  
5 shows that the concept of ‘legal tender’ encompasses, inter ali a, an obligation in principle to 
accept banknotes and coins denominated in euro for payment purp oses17. 
2.9 Insofar as it allows the EU legislature to lay down the mea sures necessary for the use of the euro 
as the single currency, the Court clarified that Article 133 of  t h e  T r e a t y  e m p o w e r s  t h e  E U  
legislature alone to specify the legal rules governing the stat us of legal tender accorded to 
banknotes and coins denominated in euro, insofar as that is nec essary for the use of the euro as 
the single currency. Such exclusive competence precludes any co mpetence on the part of the 
Member States in the matter, unless they have been empowered by  the European Union to do so 
or for the implementation of Union acts18. 
2.10 However, the Court further clarified that the status of le gal tender calls only for acceptance in 
principle of banknotes and coins denominated in euro as a means  of payment, not for absolute 
acceptance. The European Union’s exclusive competence in matter s of monetary policy is 
without prejudice to the competence of the Member States whose currency is the euro to regulate 
the procedures for settling pecuniary obligations, which do not  affect the principle that, as a 
general rule, it must be possible to discharge a payment obliga tion in cash. Thus, that exclusive 
competence does not prevent a Member State from adopting a meas ure which supports the legal 
tender status of cash payment instruments; for instance, a Memb er State can oblige the public 
administration to accept cash payments from citizens. Neither d oes it prevent a Member State, in 
the exercise of its own powers, from introducing, on legitimate  public interest grounds, a 
derogation from that obligation for statutorily imposed payment s, subject to compliance with 
certain conditions . In particular, the obligation to accept euro banknotes and coi ns could, in 
principle, be restricted by the Member States for reasons of pu blic interest and subject to the 
principle of proportionality. This means that any such restrict ions need to be proportionate to the 
public interest objective pursued. When limiting the possibilit y, recognised by EU law, of generally 
discharging a payment obligation in banknotes and coins denomin ated in euro, Member States 
must ensure that any measures comply with the principle of prop ortionality, which requires in 
particular that they are appropriate for achieving the legitima te objectives pursued by the 
legislation at issue and do not go beyond what is necessary in order to achieve those 
objectives19. 
2.11 The ECB has provided additional guidance in its opinions w ith respect to whether limitations may 
be considered to be proportionate. In particular, the ECB has n oted that the broader and more 
general a limitation is, the stricter should be the interpretat ion of the requirement for the limitation 
to be proportionate to the objective pursued. When considering whether a limitation is 
proportionate, the adverse impact of the limitation in question  and whether alternative measures 
                                                 
17  See judgment of the Court of Justice of 26 January 2021, Hessischer Rundfunk , joint cases C-422/19 and C-
423/19, ECLI:EU:C:2021:63, paragraphs 46 to 49. 
18  See judgment of the Court of Justice of 26 January 2021, Hessischer Rundfunk , joint cases C-422/19 and C-
423/19, ECLI:EU:C:2021:63, paragraphs 50 to 52. 
19  See judgment of the Court of Justice of 26 January 2021, Hessischer Rundfunk , joint cases C-422/19 and C-
423/19, ECLI:EU:C:2021:63, paragraphs 55 to 56 and 67 to 70. 
ECB-PUBLIC  
6 could be adopted that would fulfil the relevant objective with a less adverse impact should always 
be considered20.  
2.12 Finally, Recommendation 2010/191, as referenced by the Cou rt, states that no surcharges should 
be imposed on payments with euro banknotes and coins21. 
2.13 Taking into account the foregoing considerations, the ECB considers the draft law to be in line 
with the legal tender status of euro banknotes and coins under Union law. Moreover, the ECB 
considers that the exceptions provided under the draft law to t he general rule requiring merchants 
to accept payments in banknotes and coins issued by the NBP are  clearly defined, not excessive 
and in general proportionate in view of the overall assessment of the situation, provided that the 
citizens in Poland are in general able to pay for basic public services, such as public 
transportation, with cash e.g. by using a nearby alternative po int of sale in addition to a cashless 
vending machine. The draft law’s prohibition on surcharges on p ayments with banknotes and 
coins is also consistent with th e legal tender status of euro b anknotes and coins under Union law. 
 This opinion will be published on EUR-Lex. 
  
Done at Frankfurt am Main, 14 May 2021. 
 [signed] 
 
The President of the ECB 
Christine LAGARDE 
                                                 
20  See paragraph 2.7 of Opinion CON/2017/8. 
21  See judgment of the Court of Justice of 26 January 2021, Hessischer Rundfunk , joint cases C-422/19 and C-
423/19, ECLI:EU:C:2021:63, paragraph 8.