Cash Dependence and Unequal Development in Transition Economies: Romania vs. the European Union
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| Pages: | 111 : 118 |
| Abstract: | The persistence of cash usage in transition economies continues to attract scholarly attention, particularly in contexts where rapid digitalization coexists with uneven economic development. Romania represents a revealing case within the European Union, combining strong progress in digital banking and e-commerce with continued reliance on cash transactions in many sectors of the economy. This article investigates the relationship between cash dependence and structural inequalities in Romania by comparing key indicators of payment behavior, financial inclusion, and digital adoption with EU averages over the last decade (2015–2024). Using statistical data from Eurostat, the European Central Bank, and the World Bank, the study highlights the structural factors that sustain cash dependence, including regional disparities, financial exclusion, rural poverty, and institutional trust deficits. The findings suggest that Romania’s payment landscape reflects broader development asymmetries rather than simple technological lag. While urban areas have increasingly adopted digital payment instruments, large segments of the population continue to rely on cash due to limited financial inclusion and socio-economic vulnerabilities. The paper argues that addressing cash dependence requires integrated policy approaches that combine digital financial innovation with broader strategies aimed at reducing inequality, strengthening financial literacy, and improving access to financial services across regions. |
| JEL classification: | E42, G21, O33, I32, R12 |
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E42, G21, O33, I32, R12
