billion in 2002 to €1. 1 trillion in 2011. 1 nevertheless, to judge by several studies, we estimate that in the euro area 70 – 80 % of the number of transactions and 50 – 60 % of the value of all transactions at the point of sale are still made in cash. 2 however, despite the predominance of cash in daily payments there are indications that things are changing, although very gradually. one indication from surveys carried out by different central banks is that the share of cash payments in retail payments appears to be slowly diminishing. this decline seems to be somewhat more pronounced for the value than for the number of cash payments, meaning that the average value of a cash payment is also falling. a study on payments carried out by the ecb in eight euro area countries in 2008 revealed that cash is most often used for transactions below €20. on average 55 % of the respondents said they normally paid cash for typical daily purchases of between €30 and €100. but on average 87 % said they always or often used cash for purchases below €20. this behaviour is reflected in the average value of a cash payment, which in 2011 was around €20 in germany and austria, and only just over €12 in the netherlands. 3 in other words, cash is still the most common form of daily retail payment, but largely and increasingly because it is used for frequent small purchases. however, this does not mean that cash is no longer used for high - value payments. our 2008 survey showed that on average 20 % of the interviewees in the eight countries said they used cash always or almost always for purchases of between €200 and €1, 000. 4 % even said they normally used cash for purchases above €10, 000. there is another function of banknotes, namely their function as store of value. under normal circumstances low interest rates result in low opportunity costs of holding cash, and consequently in an increase in the demand for banknotes used for store of value purposes. however, as we have seen in recent years, extraordinary circumstances can create an additional demand for banknotes for store - of - value purposes. this became clear after the collapse of lehman brothers, when in a period of only three weeks euro banknote circulation increased by €35 billion. also during the periods of high uncertainty in greece banknote demand increased strongly in that country, although a backflow of banknotes to the central bank was also observed after the situation stabilised. likewise, we saw

gradual process and it will lead to a reduced need for banknotes for transaction purposes. and just for you to understand the possible implications : if the payment pattern in the whole of the euro area was like that in the netherlands, where 62 % of the number and 37 % of the value of all retail payments were made in cash in 2011, the value of the cash withdrawals in the euro area would be only half the value of the current cash withdrawals. as a result, the social cost of making cash payments will continue to rise relative to the social cost of making an electronic payment. in one way or another, this will put pressure on the cash sector to become more efficient. second, we feel that because of national differences in the use of cash, and differences in geography and cultures, it is neither possible nor desirable to have one way of organising the cash cycle in the euro area. we should, however, at least move in the same direction and adopt a number of common rules and principles relating to the organisation of the cash cycle. a good example is the ecb recirculation decision, which lays down the rules under which third parties are allowed to re - circulate banknotes, and which applies to the whole of the euro area. this should ensure that in the whole of the euro area the public can be certain that banknotes provided by atms are genuine. third, while there can be no objections to a society with less cash, a cashless society is not possible in the foreseeable future. decisions and initiatives taken in various countries to limit the value of cash payments by law are not incompatible with the legal tender status of euro banknotes and coins, provided that other lawful means of payments are available. furthermore, limitations can be accepted if they are proportionate to the objectives pursued. but although it is understandable that merchants wish to reduce the amounts of cash they handle and hold for efficiency and security reasons, we feel that it is problematic that shops will become cashless on a large scale. it would ignore the will of a large share of the population, and it would also go against the principle of the legal tender status, and the universal acceptance, of cash. fourth, as the events of 2008 and the more recent developments in some countries have shown, there is a relationship between the demand for banknotes and public trust in the banking sector. although people clearly trust euro banknotes, it would be much better if they did not feel the need to store