Trust in Money, Digital or Physical

Prof Dr Julia Pitter spoke at the recent Bundesbank cash symposium about the relationship between people and cash. According to Dr Pitter, a business psychologist at the Internationale Hochschule in Vienna, cash is more than just a payment.

In addition to the known arguments about why cash is important, there is also a contribution from neuroscience. It appears that cash increases the reward system in our brain. She called it 'Geldreiz' – Cash stimulus. Only cash can activate it, no other payment method can bring such stimulus in our brain. Making a cash payment causes more pain than other payment methods and, therefore, cash helps to control spending. In the US, where credit cards are more widely used, the level of debt is also much higher than in Germany.